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  • Poterack Capital Advisory

Three Phases of Money

My team and I serve great people who have unique views, values, and objectives. One area people don’t often consider is how to maximize their inheritance passed on to family and charity.

I ask people which is a highest priority, their fun and lifestyle or leaving more to their family and charity? With overwhelming popularity, people reply that their fun and lifestyle is a higher priority.

This is often viewed as a binary choice or zero-sum game. Few people explore how to get both! Would it give you great joy to enjoy all the fun and lifestyle you want and maximize what you provide to those people and charities you care for?

Your wealth has three distinct phases.

  • Accumulation Phase

  • Income Phase

  • Estate Distribution Phase

The applicable “rules” of each phase are very different. The corresponding effective strategies are very different for each phase of your wealth.

We have helped many families move from paychecks to play-checks as they transition to the Income Phase from the Accumulation Phase. The mindset of clients approaching the Income Phase, after 3-4 decades in the Accumulation Phase, can become a barrier to adjusting strategies that better serve clients under the “new rules” of the Income Phase. Strategies used to accumulate wealth are not typically good or efficient strategies for an income objective.

Similarly, we all know and accept we will die a mortal death. We know and accept we cannot take our wealth with us after we die. Once again, all the rules change as our wealth enters the Estate Distribution Phase. It is not easy to discuss, in a rational and logical way, your eventual death. It’s just not a fun conversation! People understand they will not live forever, but often think, talk, and implement strategies as if they will live forever. Once again, our own mindset may become an obstacle in the way of implementing strategies in your best interests.

For those wanting it all, or at least determining if you might have all, let me know you want to learn more. You may be able to enjoy all the fun and lifestyle you wish and maximize what you pass on to others. I learned many years ago not to spend any time convincing others to do what they don’t want to do. Therefore, I’m ready to discuss when you are.

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