Goal-based planning is a “total wealth” approach that focuses on a client’s big picture. Instead of looking at just short-term investment performance or developing a long-term retirement funding plan, it identifies and balances all of a client’s goals, including:
- Wealth accumulation planning.
- Asset protection planning to protect wealth from financial predators.
- Life-cycle cash flow budgeting (life cycle refers to various life stages, such as early, active retirement though later retirement where healthcare and assisted living planning may become important). Unless predictable life changes are planned for, financial results can be disappointing, and the risk of running out of money or not being able to afford basic needs is elevated.
- Detailed retirement planning that considers tax efficiency, all retirement assets like pensions and Social Security, life cycle budgeting, and survivor income planning. Females tend to live longer, but retirement income often changes dramatically at the first death. Without proper planning, women are at high risk of compromised lifestyles or even poverty.
- Tax reduction strategies.
- Efficient estate planning that controls taxes and protects family wealth.
- Children’s inheritance and divorce protection planning.
- Prioritizing and balancing needs (such as food and healthcare), wants (such as extended travel) and wishes (such as major luxury purchases) to put goals and resources in perspective.
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