I would split up the market in various ways,
After figuring out what group your in, there are three main types of planning to consider if your a business owner there's an additional area of planning,
Protecting your Assets
Retirement Planning (and distribution)
Many experts agree to protect your assets first, so log your assets and figure out what needs protecting. Remember, Americans are 90 days and 1 crisis from eating it so protecting oneself is Paramount.
After you take an inventory of your assets and you have put a plan in place to protect those assets so they can get you to Retirement.
Retirement planning takes into considerations the three main sources of retirement funds.
Qualified plans from their work
Savings and Investments
I advise my younger clients to not rely on social security, and since the economy is tanking (and our currency)I am seeing businesses cut back on their retirement plans they are offering, too expensive and the risk to principal.
For retirement planning another inventory of assets are needed. Some may be income producing assets, some may have other types of value i.e. collector's cars, jewelry and art, land etc. It is important to find out what your total annual expenses and you can break it up monthly as well.
The trick to Retirement planning is to match your retirement income sources with total expenses. It is important to get a snapshot of where you are at at what experts call the "Income Gap", which is the difference between expenses and sources of retirement income.
If there is a gap, there are ways you can remedy it, from setting up an IRA, or a Roth IRA, to funding an annuity or using Life Insurance as a tax deferred growth, tax preferred retirement vehicle, which is a very important tool considering the GOVERNMENT IS COMING FOR THE RETIREMENT ACCOUNTS
After you have protected your interests, family and maybe your business if you own one, and you have taken stock of your retirement gap, there comes the next step, estate planning.
Estate Planning is basically planning for the distribution of your assets in the most efficient way. This takes into account number of children or heirs (consequently number of marriages is taken into account), taxes for state and federal, probate taxes and any other fees etc. with giving your property to the next generation. Maybe you want a certain child to run your business, and you want to make sure you "equal the estate" for other heirs so there is no fighting, bickering or worse, legal considerations.
Once you have your wished planned for, your enjoying your retirement, your dream protected as much as Life will let you, you can sit back and think about how much this world is changing.
Note to others: this is a general approach to planning, of course I would consider other non-financial ways to protect your assets like owning guns and food. I would consider different ways to diversify your assets via metals you hold in your possession.
This was a fun post!
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