Wealth accumulation is hard to do. Wealth retention, mainly from generation to generation, is also hard to do. There are three principles our high net worth clients understand about wealth that helps them keep it and pass it on to their succeeding generations.

Principle #1 – Liquidity and Cash are King

Death and taxes are two sure things. Our clients understand that the inevitable will happen and they will pass away. They also understand the need for liquidity when they die. This liquidity comes in the form of life insurance adequately sized for their estate.

In many cases, assets may not easily be transferred into cash at the time of death. And, the larger the asset or estate, the more time it takes to liquidate at the proper value. However, the tax man wants what is owed on the estate. The forced sale of assets by heirs at the wrong time usually means deep and unwanted discounts of the assets’ value. These principles hold true for a house, an investment portfolio, or even a business. Our clients understand life insurance gives the surviving heirs the ability to cover all costs associated with the death of a loved one. Candidly as one of our clients said, it’s easier to divide up the cash the life insurance provides.

Principle #2 – Proper Prior Planning

Wealthier clients worry about money as much as families that may not be as fortunate; their worries are just on a different financial scale. As one of our entrepreneur clients said, they are the primary breadwinner. They have a full understanding of the income that will need to be replaced to cover all their concerns for the family. Well planned life insurance covers the income requirements for the family for generations to come.

Principle #3 – Assets Need to Work All of the Time, Not Just One Time

Our high net worth clients want to structure & secure their wealth by using life insurance not just as a one-time mediation tool at death, but as a valuable asset in their overall financial plan. Well designed life insurance equates to leverage; a powerful business tool to hedge against the knowns and unknowns of life, securing income and legacies for generations! Our clients share with us the structures and plans they have in place within their estate. We then design a life insurance plan that offers value and flexibility, without changing their discretionary income. It becomes an excellent and powerful financial solution!