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What Does It Mean to Preserve Your Wealth

March 18, 2022

What Does It Mean To Preserve Your Wealth? 

Financial planning tools help consumers keep track of their earning and spending habits. Individuals and families who are preparing for a major event such as advanced education or retirement may require the help of a financial expert. Advanced financial planning strategies focus on the preservation of wealth. Generational tax laws and state inheritance guidelines require careful consideration. 

Understanding Wealth

The first step to preserving your wealth is to fully understand your own financial situation. Many people mistakenly think they do not have wealth, or at least enough to worry about preserving. The reality is that most people have more resources than they realize. Your total assets, including liquid cash and real property, are included in your estate. When you begin to recognize that even potential assets have long-term value, you will fully understand your current and future wealth. 

Keeping Legal Documents Current

Your last will and testament are one of the most important legal documents you will ever create. Be sure that this is updated at least one time per year, and choose a legal representative with experience in estate planning. They can help you determine the current net value of your combined assets and even calculate a projected value based on anticipated market conditions and your personal financial portfolio. Industry professionals can also help you track your overall spending and saving habits. Other important documents to share with a trusted advisor include your life insurance policies, financial statements, and account information for commonly used websites and transactions. 

Planning for the Future

Preserving your wealth now protects your loved ones in later generations. Responsible spending, adequate life insurance, and prudent financial planning will help retain assets for many years. The two major considerations for established wealth are avoiding unnecessary taxes and outpacing inflation. Thoughtful distributions across several accounts or transferring assets to a member of your estate may help reduce inheritance taxes later. Of course, there are no guarantees when it comes to investment vehicles, but a well-rounded investment portfolio that covers several asset groups and industry sectors should help you outpace inflation over the long run.

Some information on this website was written by BrandYourself, a non-affiliate of Cetera Advisors LLC"  Megent Financial – Your representatives are Ron Bickel - Investment Executive, Tom Borsellino - Investment Executive, Danielle Burton - Investment Executive, Eric Burton - Investment Executive, Reid Burton - Investment Executive, Nick Corcoran - Investment Executive, Mark Deimling - Investment Executive, Tim Holubik - Investment Executive, Doug Klimah - Investment Executive, Dan Lekki - Investment Executive, Michelle McNally - Investment Executive, Ron Whittingham - Investment Executive, & Lori Whittingham-Derby - Investment Executive.

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