hello clients, prospective clients, and business alliance members. your role as an individual within our broader community remains sacrosanct but adherent to the next 200 generations. we must respect human free will and facilitate real wealth opportunities for all.
...free from plutocratic goons and enforcers, fabricated wars, engineered financial panics, and rapacious tax and property thievery...
we must unify our positive efforts, adapt our social-psychological consciousness, and create a more equitable economic reality. creating equity does not require military force or building obtuse bureaucratic black-holes; rather, creating leaderless leaders with unforced social cohesion adjusts our economic reality.
you may rightfully ask, how do you create leaderless leaders without forcing social cohesion and fighting collective mindsets? you should carefully follow the anonymous social-psychological movement. its wise critics would even venture that even the most tenacious, totalitarian secret police enforcers cannot find its leaderless leaders.
why cannot secret policeman or its plutocratic backers knife the leaderless leaders or subdue its ideology? based on 10,000 years ago of human civilization, many empires have come and gone through that time. those empires have always over-relied on totalitarian policy and secret police enforcers, leading to their ultimate demise.
many times, empires have become entangled with leaderless leaders, such as the romans trying to crush the christians and its jesus ideology. christianity continues a long shelf-life and remains relevant far beyond the roman empire. global plutocrats should heed the analogy!
look at the current crusade between the christians and their muslim brothers with its leading leaders. both sides have remained locked in vicious combat over the last millennium with many engineered martyrs. ironically, futilely, and yes, mind numbingly tragic, both brothers kill over shared paternal unconditional love and affection.
in that vein, the military- and prison-industrial complex must stop feeding death through religion and politics, veiling its greedy blood lust. imperial warfare has always caused inflation and economic collapse, just ask the early kings shaving gold coins after roman gaul's collapse; moreover, it cruelly and continually murders our innocent children, our seeds.
you will always create a martyr when you silence someone over their belief system or desire conquest. leaderless leaders do not need bloodshed on an altar. reason and civility work fine, right?
although the club of rome appears associated with eugenics, a deplorable practice, it created an extremely thoughtful idea. it states, "...economic planning for the future must take into account the carrying capacity of the planet." social entrepreneurship affects consumption by focusing on people and planet rather than exclusively on profit.
why forward your 3.5% of net-profit, 10% of revenue, or even your taxes to fund reigns of terror and a politician's favorite military contractor? we can stop fear through ethical commerce.
focusing your mind on people, planet, and profit, in that order, demands restraint and judicious actions. you must know not only how to reap but also how to sow.
remember the camel passing through a needle. you have to stop seeking out profit since you cannot take it with you beyond this consciousness.
creating elective healthcare and education cooperatives will satisfy our health and emotional well-being. we must teach our children to think and feel empathy. an antiquated industrial revolution mindset does not create an equitable economic reality!
meditation and tapping into the collective unconsciousness will create vision carriers, ultimately true servant leaderless leaders. how can our children navigate treachery without learning how to think and feel empathy? we must teach them emotional intelligence, sustaining the role of your individual within a broader community.
our collective demand involves improving human capital through releasing paternalistic control, adopting unfettered and transparent communication, and pouring salt over bureaucracy. we must expand our networks and commercial connections beyond pure profit motive.
both enlightened western and eastern thought converge towards "live and let live" and "your rights end where mine begin..." a person cannot truly connect with more advanced thinking when focused purely on a profit, something that demands unquestioning obedience. unquestioning obedience that may demand actions beyond ethical reasoning...just ask the toddlers murdered by syrian troops and our collective soviet cold war legacy.
you must define and recreate your own reality not through some other person's dream but through your own dream. remove an entitlement mentality, not within a narrow political sense, but across socioeconomic boundaries; most importantly, stop socializing risk and privatizing ill-gained profit.
we must create a production focus, not just taking and not based on uncivil consumption. stop the fear and free our children!
Wednesday, April 18, 2012
Monday, March 26, 2012
independent oil / gas entrepreneur case study
hello clients, prospective clients, and business alliance members. throughout my time investigating the independent oil / gas market in midland, it appears that some psychological barriers have become breached again. our community has truly embraced the boom with telltale signs:
meeting with a middle age fellow, say fred fellows, over time revealed a common asset / liability management strategy. fred's strategy involved stacking chips fully deep into working interests. although he created significant profits with some equally gripping losses, his risk profile appeared imbalanced towards asset yield.
once fred and his retained financial counsel blueprinted his exit strategy, they envisioned his family's legacy and designed his pension. rather than double down on working interests, he considered taking profits or losses where appropriate and pivoted resources shrewdly.
his strategy included additional asset allocation into more stable royalty interests as well as other financial instruments. we pruned profits away from 100% working interests, reduced overall asset portfolio volatility, and stabilized cash flow. understanding his overall risk profile required an independent mindset with collaboration, intense thought, and intelligent execution.
as in fred's case, like all cases, we must always look around the corner. structuring his enterprise vision well ensured a road map to provide legacy capital for many generations. cash flow sources will affect not only his future lifestyle but provide unimaginable opportunity down the road. his tax attorney joined our party and maneuvered the estate tax challenges with gusto!
beyond the next seven generations, we designed his own custom-tailored pension that can avoid outliving income and cover uninsured healthcare expenses. focusing on future income and healthcare liabilities anchored his asset portfolio and developed a robust foundation. why worry about beating a market index when you can engineer a lifetime guaranteed income benefit?
for instance, fred invested $500,000 and created a meaningful income benefit with a properly designed income annuity. we engineered the guaranteed income stream to create over $55,000 per year within ten years for life. although his income benefit will total over $1.00 million, he simply cannot walk away with that lump sum amount.
he must use the accumulation value for a lump sum distribution; moreover, his income annuity represents his own particular situation around age 60. you should consult proper tax counsel as necessary, and yes, not all income annuity contracts remain equal.
most individuals desire predictability and guarantees. the lump sum placement only comprised 25% of his entire portfolio but provided guaranteed cash flow and piece of mind! additional profits could increase the income benefit or go elsewhere to satisfy his holistic needs.
fred's pruned oil / gas asset portfolio avoided a fully deep position. volatile market swings can reward monetarily but may also punish market players with inconsistent cash flow and poor health.
our financial instrument choices did not not amplify volatility but secured principal with affordable, attractive, and beneficial options. he also invested in a extended care insurance combination solution with a life insurance structure. we repositioned 250,000 and generated a meaningful death benefit solution with tidy coverage against uninsured healthcare expenses.
we did not choose a premium-based extended care policy since he had assets that he repositioned profitably. his risk management process required foresight and deliberation with no shortcut toleration. we utilized a customized, holistic asset / liability management approach.
nevertheless, fred fellows desired maximum enjoyment regarding the benefits of ownership. he can always break his back, but at the end of the day, he can pivot and change his direction without much fuss. besides, why risk your health wellness, right?
mendez & co. financial counselors maintains that the case study does not fit all cases, especially in the nuanced oil / gas market. seek out professional financial counsel and blueprint your exit strategy, envision your legacy, and design your pension!
...you can count on my professional judgment, my resource access, and my practical counsel...
- pharaonic civil projects
- inequitable and inadequate city service infrastructure
- capital splitting real property and production inflation
- over-sized trucks with even larger homes and exhaust pipes.
meeting with a middle age fellow, say fred fellows, over time revealed a common asset / liability management strategy. fred's strategy involved stacking chips fully deep into working interests. although he created significant profits with some equally gripping losses, his risk profile appeared imbalanced towards asset yield.
once fred and his retained financial counsel blueprinted his exit strategy, they envisioned his family's legacy and designed his pension. rather than double down on working interests, he considered taking profits or losses where appropriate and pivoted resources shrewdly.
his strategy included additional asset allocation into more stable royalty interests as well as other financial instruments. we pruned profits away from 100% working interests, reduced overall asset portfolio volatility, and stabilized cash flow. understanding his overall risk profile required an independent mindset with collaboration, intense thought, and intelligent execution.
as in fred's case, like all cases, we must always look around the corner. structuring his enterprise vision well ensured a road map to provide legacy capital for many generations. cash flow sources will affect not only his future lifestyle but provide unimaginable opportunity down the road. his tax attorney joined our party and maneuvered the estate tax challenges with gusto!
beyond the next seven generations, we designed his own custom-tailored pension that can avoid outliving income and cover uninsured healthcare expenses. focusing on future income and healthcare liabilities anchored his asset portfolio and developed a robust foundation. why worry about beating a market index when you can engineer a lifetime guaranteed income benefit?
for instance, fred invested $500,000 and created a meaningful income benefit with a properly designed income annuity. we engineered the guaranteed income stream to create over $55,000 per year within ten years for life. although his income benefit will total over $1.00 million, he simply cannot walk away with that lump sum amount.
he must use the accumulation value for a lump sum distribution; moreover, his income annuity represents his own particular situation around age 60. you should consult proper tax counsel as necessary, and yes, not all income annuity contracts remain equal.
most individuals desire predictability and guarantees. the lump sum placement only comprised 25% of his entire portfolio but provided guaranteed cash flow and piece of mind! additional profits could increase the income benefit or go elsewhere to satisfy his holistic needs.
fred's pruned oil / gas asset portfolio avoided a fully deep position. volatile market swings can reward monetarily but may also punish market players with inconsistent cash flow and poor health.
our financial instrument choices did not not amplify volatility but secured principal with affordable, attractive, and beneficial options. he also invested in a extended care insurance combination solution with a life insurance structure. we repositioned 250,000 and generated a meaningful death benefit solution with tidy coverage against uninsured healthcare expenses.
we did not choose a premium-based extended care policy since he had assets that he repositioned profitably. his risk management process required foresight and deliberation with no shortcut toleration. we utilized a customized, holistic asset / liability management approach.
nevertheless, fred fellows desired maximum enjoyment regarding the benefits of ownership. he can always break his back, but at the end of the day, he can pivot and change his direction without much fuss. besides, why risk your health wellness, right?
mendez & co. financial counselors maintains that the case study does not fit all cases, especially in the nuanced oil / gas market. seek out professional financial counsel and blueprint your exit strategy, envision your legacy, and design your pension!
...you can count on my professional judgment, my resource access, and my practical counsel...
Monday, March 19, 2012
salvatore cantale - cheers to a mentor
hello clients, prospective clients, and business alliance members. just viewed an extraordinary clip from an undergraduate finance mentor who helped me swing out three more senior year hours. we modeled the rjr nabisco deal comparing the management and private equity offers utilizing fundamental cash flow scenarios.
his cash flow instincts influenced my valuation systems, and it appears that we share the same ethical compass to this day. a honed, disciplined financial modeling approach has guided my corporate finance decision-making process since college; moreover, it has positively influenced and shaped my asset / liability and strategic risk management experience.
as the speech progressed, and salvo got more into it, his jokes started cracking me up all over again. enjoy and cheers! my clients, prospective clients, and business alliance members thank you kindly for your mentoring energy salvo...
Salvatore Cantale
Professor of Finance at IMD
The current global financial crisis represents a major threat to stability and the wellbeing of huge numbers of people. Some blame the greed of the banking sector. But what are the deeper underlying causes?
Salvatore Cantale is a professor of finance and an advocate of the role of finance in value creation, who himself started his career as an investment banker. In his talk, he makes the complex plain and proposes some new approaches to finance as potentially promising solutions.
A new approach to finance
Salvatore Cantale
Salvatore Cantale is a professor of finance and an advocate of the role of finance in value creation, who himself started his career as an investment banker. In his talk, he makes the complex plain and proposes some new approaches to finance as potentially promising solutions.
Thursday, March 15, 2012
father and son time on friday - minimal commerce
hello clients, prospective clients, and business alliance members. focusing more on emotional health development definitely pays off and warrants coordinated attention. this practice fits into a client-centric, concierge health + financial wellness program.
rather than focusing exclusively on money awards, corporate human resource departments must permit scheduling fluidity and facilitate user-definition. in layman's terms, the statement means ease up on employee time control. extra monetary awards work generally well, but what about taking a traditional workday off consistently to experience quality family time?
nearly every friday, blaine, our 21 month old son, and i enjoy our time together. we have a late-start morning feeling the warm sun pour through the window. timed-set coffee from last night fills the kitchen air, as we prepare our morning.
with a quick diaper change, we head off to his playroom, usually a milk cup in hand, and just hang out. he will tell me when he wants some breakfast, or sometimes, he just has to sit down at the table. we enjoy our healthiest breakfast all week with oatmeal, flax, fruit, laughter, and sunshine.
we may leave for the office or take turns saying hello around the partition between the solarium and his playroom. a business-funded desktop computer sits outside his playroom, which often doubles up as his multimedia toy. integrating business tools into the work and home environment pays dividends through flexibility but requires discipline knowing when to turn it off.
when we pull into my office's parking garage, his amazement follows the light rays as they dim out with the closing garage door. he loves walking on his own and insists that he walk to the door. his insistence needs a minor push when we get to the elevator, but he enjoys the gravitational push.
watching my son conquer his fear with the elevator over a time lapse makes me feel confident. we both took on something together difficult, but when it came down to deliver, he did it alone. his self-reliance and mental fortitude training will affect his future lifestyle as much as a trust fund, if not considerably more.
eventually, we head back to the house and get some lunch before nap time. my wife and i have a shift change sometime after nap time. time to go back to the office and close down.
feeding his global perspective, we often talk about his peers in palestine, lebanon, syria, and subsaharan africa. without detailing violence committed against his peers, we talk about each child as an equal with a name and loving family. foreign affairs take new meaning when evaluated through your child's eyes.
create enjoyable quality family time! you often do not get a second chance...
rather than focusing exclusively on money awards, corporate human resource departments must permit scheduling fluidity and facilitate user-definition. in layman's terms, the statement means ease up on employee time control. extra monetary awards work generally well, but what about taking a traditional workday off consistently to experience quality family time?
nearly every friday, blaine, our 21 month old son, and i enjoy our time together. we have a late-start morning feeling the warm sun pour through the window. timed-set coffee from last night fills the kitchen air, as we prepare our morning.
with a quick diaper change, we head off to his playroom, usually a milk cup in hand, and just hang out. he will tell me when he wants some breakfast, or sometimes, he just has to sit down at the table. we enjoy our healthiest breakfast all week with oatmeal, flax, fruit, laughter, and sunshine.
we may leave for the office or take turns saying hello around the partition between the solarium and his playroom. a business-funded desktop computer sits outside his playroom, which often doubles up as his multimedia toy. integrating business tools into the work and home environment pays dividends through flexibility but requires discipline knowing when to turn it off.
when we pull into my office's parking garage, his amazement follows the light rays as they dim out with the closing garage door. he loves walking on his own and insists that he walk to the door. his insistence needs a minor push when we get to the elevator, but he enjoys the gravitational push.
watching my son conquer his fear with the elevator over a time lapse makes me feel confident. we both took on something together difficult, but when it came down to deliver, he did it alone. his self-reliance and mental fortitude training will affect his future lifestyle as much as a trust fund, if not considerably more.
eventually, we head back to the house and get some lunch before nap time. my wife and i have a shift change sometime after nap time. time to go back to the office and close down.
feeding his global perspective, we often talk about his peers in palestine, lebanon, syria, and subsaharan africa. without detailing violence committed against his peers, we talk about each child as an equal with a name and loving family. foreign affairs take new meaning when evaluated through your child's eyes.
create enjoyable quality family time! you often do not get a second chance...
Tuesday, March 6, 2012
a truly global client experience
hello clients, prospective clients, and business alliance members. the mobile entrepreneur concept combined with a social entrepreneur agenda embodies our commercial future; moreover, when you place people and planet over profits, you create a sustainable winning combination.
with mobility and a social conscience, you can blueprint a truly global client experience. wise business development strategies do not build a business model and expect clients to come knocking on the door. the tail (provider) ultimately does not wag the dog (client).
your clients should define your business model and provide you with constant feedback about their direction. you must match the needs and desires to ensure that the requests make prudent business sense. finding a niche and filling it may sound trite, but following the maxim works and requires discipline with a client-centric focus.
for instance, clients outside my independent practice's footprint desire a richer concierge experience beyond the telephone. adding visual context within an audio experience creates the sensation that you can move without moving. although the concept harks back to "dune," you do not need spice to power your intercontinental journey.
you just need skype or other teleconferencing technology that provides facial expressions with the spoken word. rich teleconferencing technology permits a social entrepreneur the ability to call the shots where to play and how to create value; moreover, other software as a solution applications level the competitive playing field even further, unlocking additional client-centric value.
when you meet in person, which will invariably arise, you can keep a studio apartment rental with shared work and living spaces. our future studio apartments will gravitate towards technology and energy themed regions such as northern new mexico, denver, and austin. these areas would serve as a launching point into the global arena.
thinking globally but acting locally, my clients have specific concerns about outliving income and paying for uninsured healthcare expenses; moreover, as the global middle class rises in emerging markets, the two themes will resonate across many different civilizations, not just western society.
creating a truly global client experience engineers geographic omnipresence and sustainable value. you can count on my professional judgment, my resource access, and my practical counsel.
with mobility and a social conscience, you can blueprint a truly global client experience. wise business development strategies do not build a business model and expect clients to come knocking on the door. the tail (provider) ultimately does not wag the dog (client).
your clients should define your business model and provide you with constant feedback about their direction. you must match the needs and desires to ensure that the requests make prudent business sense. finding a niche and filling it may sound trite, but following the maxim works and requires discipline with a client-centric focus.
for instance, clients outside my independent practice's footprint desire a richer concierge experience beyond the telephone. adding visual context within an audio experience creates the sensation that you can move without moving. although the concept harks back to "dune," you do not need spice to power your intercontinental journey.
you just need skype or other teleconferencing technology that provides facial expressions with the spoken word. rich teleconferencing technology permits a social entrepreneur the ability to call the shots where to play and how to create value; moreover, other software as a solution applications level the competitive playing field even further, unlocking additional client-centric value.
when you meet in person, which will invariably arise, you can keep a studio apartment rental with shared work and living spaces. our future studio apartments will gravitate towards technology and energy themed regions such as northern new mexico, denver, and austin. these areas would serve as a launching point into the global arena.
thinking globally but acting locally, my clients have specific concerns about outliving income and paying for uninsured healthcare expenses; moreover, as the global middle class rises in emerging markets, the two themes will resonate across many different civilizations, not just western society.
creating a truly global client experience engineers geographic omnipresence and sustainable value. you can count on my professional judgment, my resource access, and my practical counsel.
Friday, February 24, 2012
financial wellness drives health wellness
hello clients, prospective clients, and business alliance members. our employer-based production society must refocus its priorities when evaluating employee productivity fitness. current knowledge focuses its efforts towards health wellness rather than balancing towards financial wellness.
rather than buy a gym membership, an employer could maximize benefits' dollars towards a client-centric, concierge financial wellness program. a monthly plan could purchase time hours with minimal upfront outlay and negotiated hours; or, the employer and the employee could arrange voluntary benefits with a 360 degree merit-based bonus benefit investment.
a solid financial wellness program would require one-on-one dedicated financial counseling. this discipline requires philosophical balance between assets and liabilities, avoiding excessive efforts at each spectrum end. chasing yield while managing net working capital losses appears foolhardy knowing that you may need the funds at the worst time.
most logically from anecdotal experience, you could reasonably argue that financial wellness drives health wellness. financially stressed people generally divorce each other, lose jobs, families, children, businesses, and yes, the ultimate price, their health.
life sometimes does not appear fair, yes; however, choosing to maintain financial discipline even when unhappy requires mental fortitude. the fortitude takes practice, help, and living within the moment inside your strategic intent.
with that in mind, how can you approach the financial wellness challenge? short of gorging yourself on the talking heads' soup, you should consider hiring someone with trust and confidence. leisure seekers have always known that hiring the right people can positively impact your lifestyle and possibly extend life.
you can couple the strategic financial wellness program with meditation, clean food and water, sunshine, smiles, oxytocin, and moderate exercise. annual preventative medical checkups should coincide with a mini-financial check within a comfortable rotation system. wise human capital professionals know that the financial and health wellness complement each other.
employers must also maintain flexibility, sell more employee equity, and provide more transparency in its decision making process. our collective unconscious human capital potential grows infinitely with authentic and deliberate care.
...you can count on my professional judgment, my resource access, and my practical counsel.
rather than buy a gym membership, an employer could maximize benefits' dollars towards a client-centric, concierge financial wellness program. a monthly plan could purchase time hours with minimal upfront outlay and negotiated hours; or, the employer and the employee could arrange voluntary benefits with a 360 degree merit-based bonus benefit investment.
a solid financial wellness program would require one-on-one dedicated financial counseling. this discipline requires philosophical balance between assets and liabilities, avoiding excessive efforts at each spectrum end. chasing yield while managing net working capital losses appears foolhardy knowing that you may need the funds at the worst time.
most logically from anecdotal experience, you could reasonably argue that financial wellness drives health wellness. financially stressed people generally divorce each other, lose jobs, families, children, businesses, and yes, the ultimate price, their health.
life sometimes does not appear fair, yes; however, choosing to maintain financial discipline even when unhappy requires mental fortitude. the fortitude takes practice, help, and living within the moment inside your strategic intent.
with that in mind, how can you approach the financial wellness challenge? short of gorging yourself on the talking heads' soup, you should consider hiring someone with trust and confidence. leisure seekers have always known that hiring the right people can positively impact your lifestyle and possibly extend life.
you can couple the strategic financial wellness program with meditation, clean food and water, sunshine, smiles, oxytocin, and moderate exercise. annual preventative medical checkups should coincide with a mini-financial check within a comfortable rotation system. wise human capital professionals know that the financial and health wellness complement each other.
employers must also maintain flexibility, sell more employee equity, and provide more transparency in its decision making process. our collective unconscious human capital potential grows infinitely with authentic and deliberate care.
...you can count on my professional judgment, my resource access, and my practical counsel.
Tuesday, February 14, 2012
windfall assets - the sandwich generation's opportunity
hello clients, prospective clients, and business alliance members. you should avoid counting on living gifts and inherited assets from your family as a general rule. the sandwich generation, on the other hand, may receive more than $8 trillion, at least for three quarters of them.
boston college and metlife conducted a recent inquiry concerning intergenerational wealth transfer and the sandwich generation. numerical figures come from their published report [drucker, peter f., eschtruth, andrew, karamcheva, zhenya, munnell, alicia h., and anthony webb. "the metlife study of inheritance and wealth transfer to baby boomers." center for retirement research at boston college, 2010. web. dec 2010.].
living gifts and inherited assets represent a fantastic opportunity! the fortunate sandwich generation members who have inheritable assets may receive a median $64,000 in living gifts and inherited assets. which begs the question, what do you do with such a windfall?
knowing that this opportunity does not come too often, you should seek balance and retain professional financial counsel. strategic efforts should focus on enjoying the windfall, satisfying legacy needs, paying off consumption debt, and building pension assets.
let us discuss the prescribed ideas in order:
a) spending the money on enjoyment
as a consumption-driven western society, we must assume that you have a socialized need to consume the money on yourself today; however, you should understand your overall financial wellness in the windfall's absence. you could spend around 5% to 10% on yourself if you have manageable debt and a solid pension plan.
if you have minimal debt and a fantastic pension plan, you could arguably bump the spending amount beyond 10% to 25%. my professional opinion highly cautions exceeding a 25% threshold because overspending could erode intergenerational wealth transfer opportunities.
if your overall financial wellness requires significant care, you should cap off spending at around 5% of your windfall. spending $3,200 on yourself in the median case should satiate your spending urges, while providing opportunity for the future. you can always spend more but remember that you may squander a once in a lifetime opportunity.
no hard and fast rule exists, but it remains critical to reward yourself carefully.
b) satisfying legacy needs
most clients cherish grandparent and charitable gifting opportunities. these tactics may require consulting professional tax counsel, which my clients and i routinely seek out together; most importantly, you should consider your overall financial wellness as well.
effective grandparent gifting strategies generally involve purchasing financial instruments towards education and future life prospects. my clients favor paid-up permanent life insurance policies since grandchildren can capitalize on future coverage and cash value. this tactic does not operate in isolation and has its pros and cons like any other financial instrument.
imagine your grandchildren earning a doctorate, fighting hunger and disease, launching a technology startup, or purchasing a vintage sloop. the greatest generation's gifts can fund those life prospects and dreams; however, you must navigate the funds towards your grandchildren and away from overspending or rapacious governmental tax treasuries.
charitable gifting remains a fantastic option for many sandwich generation members. you should clearly outline your values and provide funding where you feel best suited to your value system. this tactic may also afford potential tax immunization with proper tax consultative advice.
your charitable contributions could also land you with future extracurricular prospects. imagine funding a nonprofit organization and having leadership opportunities down the road as an engaged volunteer. the boundaries remain limitless, but as always, seek outside tax counsel when in doubt.
c) paying off consumption debt
paying off consumption debt does not uniformly apply to everyone; however, our dialogue should not forget this topic. you should allocate around 25% to 50% of your windfall towards this tactic with an extremely weak financial wellness profile.
with a moderate to strong financial wellness profile, you may not necessarily require much attention in this area. you should not exclusively or overly focus on this topic, to the chagrin of many financial charlatan talking heads; most importantly, no hard or fast rules exists in this area, and in doubt, you should seek professional financial consultation.
d) building pension assets
the landmark study clearly emphasized that the sandwich generation needs more preparation towards retirement readiness, even with a sizable windfall. you should unwaveringly address avoiding outliving income and cover uninsured healthcare expenses. addressing retirement readiness will maintain your future standard of living.
insurance-based solutions such as extended care insurance in combination with an annuity or a life insurance policy may fortify your pension. as an example, you can reposition your windfall and create solid extended care coverage while retaining coverage ownership. most single premium extended care policies generally require a $50,000 minimum deposit with coverage based on age, health, and insurance structure.
a single premium repositioning tactic provides protection against outliving your income and insures against uninsured healthcare expenses. if you do choose other investment options, you should carefully weigh a financial instruments ability to manage those two risks. investing into volatile assets may not fit the bill and could compromise a holistic asset / liability management approach.
maximizing your windfall requires professional care and careful consideration with your beneficiaries. you deserve nothing less! it also demands restraint on your part.
although mendez & co. financial counselors does not provide tax advice, my clients hire me to seek out professional tax advice. this dialogue also does not serve as financial counsel tailored to your unique situation. it merely serves as a dialogue guidepost and thought stimulation.
you can count on my professional judgment, my resource access, and my practical counsel.
blake mendez
boston college and metlife conducted a recent inquiry concerning intergenerational wealth transfer and the sandwich generation. numerical figures come from their published report [drucker, peter f., eschtruth, andrew, karamcheva, zhenya, munnell, alicia h., and anthony webb. "the metlife study of inheritance and wealth transfer to baby boomers." center for retirement research at boston college, 2010. web. dec 2010.].
living gifts and inherited assets represent a fantastic opportunity! the fortunate sandwich generation members who have inheritable assets may receive a median $64,000 in living gifts and inherited assets. which begs the question, what do you do with such a windfall?
knowing that this opportunity does not come too often, you should seek balance and retain professional financial counsel. strategic efforts should focus on enjoying the windfall, satisfying legacy needs, paying off consumption debt, and building pension assets.
let us discuss the prescribed ideas in order:
a) spending the money on enjoyment
as a consumption-driven western society, we must assume that you have a socialized need to consume the money on yourself today; however, you should understand your overall financial wellness in the windfall's absence. you could spend around 5% to 10% on yourself if you have manageable debt and a solid pension plan.
if you have minimal debt and a fantastic pension plan, you could arguably bump the spending amount beyond 10% to 25%. my professional opinion highly cautions exceeding a 25% threshold because overspending could erode intergenerational wealth transfer opportunities.
if your overall financial wellness requires significant care, you should cap off spending at around 5% of your windfall. spending $3,200 on yourself in the median case should satiate your spending urges, while providing opportunity for the future. you can always spend more but remember that you may squander a once in a lifetime opportunity.
no hard and fast rule exists, but it remains critical to reward yourself carefully.
b) satisfying legacy needs
most clients cherish grandparent and charitable gifting opportunities. these tactics may require consulting professional tax counsel, which my clients and i routinely seek out together; most importantly, you should consider your overall financial wellness as well.
effective grandparent gifting strategies generally involve purchasing financial instruments towards education and future life prospects. my clients favor paid-up permanent life insurance policies since grandchildren can capitalize on future coverage and cash value. this tactic does not operate in isolation and has its pros and cons like any other financial instrument.
imagine your grandchildren earning a doctorate, fighting hunger and disease, launching a technology startup, or purchasing a vintage sloop. the greatest generation's gifts can fund those life prospects and dreams; however, you must navigate the funds towards your grandchildren and away from overspending or rapacious governmental tax treasuries.
charitable gifting remains a fantastic option for many sandwich generation members. you should clearly outline your values and provide funding where you feel best suited to your value system. this tactic may also afford potential tax immunization with proper tax consultative advice.
your charitable contributions could also land you with future extracurricular prospects. imagine funding a nonprofit organization and having leadership opportunities down the road as an engaged volunteer. the boundaries remain limitless, but as always, seek outside tax counsel when in doubt.
c) paying off consumption debt
paying off consumption debt does not uniformly apply to everyone; however, our dialogue should not forget this topic. you should allocate around 25% to 50% of your windfall towards this tactic with an extremely weak financial wellness profile.
with a moderate to strong financial wellness profile, you may not necessarily require much attention in this area. you should not exclusively or overly focus on this topic, to the chagrin of many financial charlatan talking heads; most importantly, no hard or fast rules exists in this area, and in doubt, you should seek professional financial consultation.
d) building pension assets
the landmark study clearly emphasized that the sandwich generation needs more preparation towards retirement readiness, even with a sizable windfall. you should unwaveringly address avoiding outliving income and cover uninsured healthcare expenses. addressing retirement readiness will maintain your future standard of living.
insurance-based solutions such as extended care insurance in combination with an annuity or a life insurance policy may fortify your pension. as an example, you can reposition your windfall and create solid extended care coverage while retaining coverage ownership. most single premium extended care policies generally require a $50,000 minimum deposit with coverage based on age, health, and insurance structure.
a single premium repositioning tactic provides protection against outliving your income and insures against uninsured healthcare expenses. if you do choose other investment options, you should carefully weigh a financial instruments ability to manage those two risks. investing into volatile assets may not fit the bill and could compromise a holistic asset / liability management approach.
maximizing your windfall requires professional care and careful consideration with your beneficiaries. you deserve nothing less! it also demands restraint on your part.
although mendez & co. financial counselors does not provide tax advice, my clients hire me to seek out professional tax advice. this dialogue also does not serve as financial counsel tailored to your unique situation. it merely serves as a dialogue guidepost and thought stimulation.
you can count on my professional judgment, my resource access, and my practical counsel.
blake mendez
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