Back to Top

How Does a Financial Planner Help
Solve the Planning Puzzle?

1. Lifetime Cash Flow Planning: Does your planner illustrate how investments in your trusts can generate income from the most tax-efficient sources?

2. Estate Tax Planning: Does your planner help you calculate the amount of inheritance for each heir no matter what year the trusts terminate?

3. Succession Planning: Does your planner help you put in place a plan to transfer control of assets to the next generation of owners and managers?

4. Risk Management: Does your planner help you evaluate exposure to risks that can be minimized with asset protection trusts, chartable trusts, and insurance trusts?

5. Charitable Planning: Does your planner show you how to convert involuntary philanthropy (taxes) into voluntary philanthropy to increase after-tax income and transfers for family?

6. Trust Funding/Investments: Does your planner work with your investment adviser to improve returns after-taxes?

1. Lifetime Income Tax Planning: Does your planner help you generate more after-tax income from earned and investment sources?
Wages Interest
Income
Divided Income Rents/
Royalties
Capital Grain Income Pension/
IRA Income
Tax-Exempt Interest RE/O&G Income Tax-Exempt Bonds Roth IRAs Tax-Free Insurance Income Cash from Tax Deductions

Worst Income Source on Left Best Income Source on Right

2. Estate Tax Planning: Does your planner help you calculate the amount of inheritance for each heir no matter what year you die or implement tax elimination strategies?
  Current Basic Blueprint Leveraged
Blueprint
Total Wealth
Control Blueprint
Optimized
Blueprint
Heirs Receive $14,971,000 $19,134,000 $23,147,000 $26,416,000 $26,974,000
Charity Receives - - - $6,050,000 $6,050,000
Estate Tax Savings - $4,422,000 $2,812,000 $4,435,000 $4,435,000
Income Tax Deductions - - - $2,035,000 $3,445,000

3. Business Succession Planning: Does your planner help you put in place a plan to transfer your business tax-efficiently to the next generation of owners and managers?

4. Risk Management: Does your planner help you evaluate exposure to risks that can be minimized with asset protection trusts, captive insurance companies, and insurance trusts?

5. Charitable Planning: Does your planner show you how to convert involuntary philanthropy (taxes) into voluntary philanthropy to increase after-tax retirement income and transfers for family?

6. Trust Funding/Investments: Does your planner work with your investment adviser to improve returns after-taxes?
Year 1926 1936 1946 1956 1966 1976 1986 1996 2006 2014  
S&P 500 $1.12 $2.37 $3.64 $19.78 $47.67 $90.58 $330.67 $1,370.97 $3,078.09 $5,307.56 Index Portfolio Return
After Taxes $1.11 $2.20 $3.04 $11.96 $22.35 $35.79 $96.66 $269.00 $466.53 $699.86 After Taxes

© Tim Voorhees, JD, MBA, AEP®
President, Family Office Services, Inc.
Principal Partner, Matsen Voorhees Mintz LLP
695 Town Center, Suite 700, Costa Mesa, CA 92626