Primary Forms

From 2006, when we first began working on formalizing content to help clients combat “Wealth Leakage” until now, times have changed!  These changes have resulted in dramatic impacts on the equities markets, the economy, IRAs, and legislation affecting virtually all areas of your financial picture.

Below are 4 areas that we presently see as the Primary or Predominant reasons for Wealth Leakage.  Please refer to these to develop your own “discussion agenda” before you sit down with ANY financial advisor.  You can also obtain greater understanding of each by reviewing the “Stop The Wealth Leakage™” E-Seminar series.

 

Taxes

Paying too much, of the wrong kind, at the wrong time - below are some of the commonly missed opportunities:

  • Reduction of Current Income Taxes
  • Strategic Roth Conversions
  • Minimizing Estate Taxes to Maximize Wealth Transfer

Investments

Depending on Traditional Wall Street Investment Strategies During a Secular Bear Market

Problems:

  • Marching to the Wall Street Drumbeat
  • Not Recognizing Secular Bear Markets
  • Denial - not recognizing the risk of static (buy and hold) strategies
  • Not understanding the true cost of low fees
  • Not understanding the true loss (inflation) of market losses compounded by loss of purchasing power

Solutions:    

  • Marching to a Different Drumbeat
  • Understanding what does and does not preserve and grow wealth during a secular bear market
  • Utilizing "Active Management Strategies" to Preserve and Grow Wealth
  • Understanding that “net of fees” investment results are the true measure of investment success
  • Utilizing tactical inflation hedged strategies to counteract loss of purchasing power

True asset class diversification

Failure to use “Endowment Style” approaches by bit diversifying into inflation hedged, income producing asset classes - what Harvard and Yale did right, and how you can learn from their successes.

Characteristics of true asset class diversification:

  • Cash Flow as a priority– the key in sideways markets
  • Utilizing business operations to achieve high total return with an “Income First” approach
  • SWAN (Sleep Well at Night) Investing

Failing to learn from the lessons of history

  • Causes of the Great Depression
  • Monopoly Money - the currency "printing press" and Government Bailouts
  • True Inflation and Government Shenanigans
  • Henry Ford's perspective - then and now, the money game that Wall Street and Washington are addicted to and the inevitable outcome.

Many of the items in the Primary Wealth Leakage section are important, but failing to understand how the combination of tax reduction, wealth preservation and cash flow planning strategies all work together can be very costly to you and your family.  Contact our office today to schedule a complimentary consultation so that we can introduce you to strategies that may help you optimize your financial potential!