Imagine trying to hold 20 plus ping pong balls under water in a bath tub with just your two hands. Whether you’re a successful small business entrepreneur, corporate executive or medical professional, there are endless responsibilities to juggle. There is only so much brain band-width capacity to maintain and monitor those multiple duties. A few of these include financial record keeping, insurance issues, estate plans, portfolio management, business and personal cash flow, retirement planning, health care, home maintenance, family issues, the list goes on and on. The danger is the lack of time or a “ceiling of complexity” preventing you from managing all the details of your family’s financial affairs. The possible reasons people haven’t organized their affairs are many: Avoidance, procrastination, ambivalence, or they think they can just figure it all out on their own or will get around to it someday.
Some of these cannot be delegated like family, health, spirituality, career success and hobbies, just to name a few. There are numerous other obligations that can and probably should be delegated. The most successful people I’ve noticed in the 27 years of helping them is that they surround themselves with top talent in their particular areas of expertise. They have more important things to focus on with the “non-delegatable” time and responsibilities than do their own taxes, draft their estate plan, keep up with all the insurance issues or try to manage their own investments. They don’t kid themselves into thinking they’ll have the time to go online and become an expert in these areas let alone keep them working together. Instead, they hire the best they can find who keep them apprised of their progress, are in touch when something needs attention or changed and most importantly, but unfortunately more rarely, they communicate regularly with the other team members.
Nevertheless, Even if you have the best over-seers in each area, if they’re not talking and coordinating, the results can be costly if not disastrous. You might have a picture perfect portfolio but if the tax implications are not coordinated properly, your after tax returns will be negatively affected. How are those assets owned? Depending on whether they’re owned personally, in a trust, in a retirement plan, corporation or LLC, the estate and potential legal litigation implications and beneficiary designations have very impactful ramifications. Is the asset protection and insurance piece coordinated with the items above and aligned properly with your particular goals, needs and risks?
Once again, if you’re fortunate to have all the right team members on your professional team, you may not have the time or inclination to make sure they’re all working together on your behalf. Our Total Financial Synchronization Service involves the overall coordination of a family’s total financial issues towards the goal of having all the pieces of the puzzle fitting together properly. Once we’ve gained Clarity on your key goals and have an action plan to execute it, there needs to be coordination and communication with all the parties involved. This is vital in the event of a major health event or loss of spouse so there’s a working team in place to assist the family in their time of need. The ideal outcome is more time to focus on family, health, career success and yes, fun times enjoying what you like to do. What’s floating in your tub?
Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.