Are You Navigating the Life Stages?
Gaining a Sense of Direction
Our objective is to help our clients create and effectively deploy excess wealth to accomplish their greatest goals, dreams and desires.
Financial Dependence
We all start at birth. This begins the wealth accumulation phase of life. During this phase, we are financially dependent. Initially, we are dependent upon our parents. As we become young adults, our dependence shifts to ourselves, and our ability to generate wealth through employment earnings or building a business. The focus of this phase is wealth accumulation. For most of us, during the Financial Dependence stage, we must work for money – to generate the desired lifestyle and protect our financial security.
Financial Independence
The second line illustrates the point where you achieve Financial Independence; when your financial resources are sufficient to support your lifestyle and protect your financial security. At this point, your money begins to work for you and you have the freedom to buy back your time to create the calendar you desire. Once Financial Independence is achieved, the rules of the game change. With regard to your financial independence, the objective becomes defendable growth. Protect the base and limit the risk.
Financial Transcendence
The dotted line makes the boundary between independence and transcendence. This is our final opportunity to creatively and effectively apply our wealth for the benefit of others. It is where our financial resources transcend ourselves and are used for the benefit of our heirs or society at large. Family Legacy is where you allocate resources to your heirs. Social Capital Legacy, traditionally thought of as philanthropy, is where you allocate resources to benefit others
The Allocation of Excess Wealth
Every dollar accumulated above your financial independence goal is essentially unproductive unless used to accomplish a meaningful goal. We refer to these dollars as Excess Wealth. There are four potential uses for excess wealth:
- To improve your lifestyle. Is there anything you desire to complement or complete your current lifestyle?
- To keep playing the game. What is left on your list of things to accomplish in life?
- To provide security and opportunity for your heirs. How can you use your financial resources to positively impact the lives of your heirs?
- To provide security and opportunity for others. How can you use your financial resources to positively impact the lives of others?
