Strategic Planning: Wealth Accumulation and Preservation
Part of the Strategic Planning process is setting up a plan for wealth accumulation and preservation.
Wealth accumulation, as mentioned is an important step towards financial freedom. You will have to answer questions regarding your investments, passive cash flow and your personal net worth. More importantly, you will have to take steps in understanding the difference between Wealth, Riches and Money.
Wealth, Riches and Money: What’s the difference?
• Money is a medium of exchange for which one may trade goods or services.
• Riches are that which accumulate, are used to create cash flow and used as catalysts to create wealth. The best examples of riches are investments.
• Wealth includes resources, substance, goods, strength and possessions. Wealth should be preserved and passed on to the next generations. True wealth is intrinsic (gold, silver, etc. Some of the most important forms of wealth include relationships and character.
Wealth preservation simply means protecting your assets for future use. If you have worked your lifetime to create and accumulate wealth, your estate is exposed to taxes, creditor claims and other risks that can eliminate your assets. And without proper planning, the Canadian Government may become the largest beneficiary of your estate!
Remember, wealth accumulation and preservation requires must be planned properly and must be implemented in advance! Contact us at KD to get started on your Strategic Planning!