Financial planning - What's a plan without considering real estate?

[Account Closed]

Retirement / financial planning are extremely important tasks. My biggest beef and frustration though is that the vast majority of planners fail to consider real estate and other investments when building a plan.

As real estate investors real estate has become an essential element in an financial plan. It is surprising though the lack of advisers that understand how appropriately consider real estate any other alternative investments in a retirement plan.

Bottom line is there is so much more to investing and planning than stocks, bonds and mutual funds.

Perhaps some of you have found financial advisers that appropriately include other investments when helping clients in their financial plans. If so I very much what like to hear about them. If you also are frustrated by the lack of advisers feel free to share your thoughts. Perhaps you feel that financial advisers do not need to include alternative investments, I would love to hear your thoughts on this as well.

[Kevin Yeats]

This seems to an appropriate place to share the following:

A Comprehensive Wealth Management plan:

1. Creates and Grows Wealth
a. Assures that their investments are appropriate to achieve desired goals.
b. Reviews their income tax situation to make sure they are not paying unnecessary taxes on investment income and excessive capital gains tax.
c. Assures their life insurance is adequate in case of premature death.

2. Protects and Preserves Wealth
a. Reviews current plans for paying for the consequences of life’s unknowns. This includes a discussion of their overall risk management program -- Life, Disability, Long Term Care and Liability -- to make sure the plans are adequate and cost effective.
b. Considers the overall investment portfolio to make sure investment selection and diversification are managed appropriately.
c. Reviews the overall tax sensitivity of these investments.

3. Plans the Distribution of Wealth during Life in the Most Advantageous Way
a. Considers the IRA and qualified retirement plan distribution plan; not as an accountant, but using a tax expert as appropriate.
b. Assesses who serves as their durable power of attorney or successor trustee of a revocable living trust in case of an incapacity - again using the appropriate advice from a CPA and legal counselors.
c. Considers ways to distribute wealth to children and descendants for well-being, education and other purposes and doing so in the most tax-efficient method.
d. Reviews charitable giving for both tax savings and control issues.

4. Plans for the Distribution of Wealth at Death in the Most Tax-Advantaged way.
a. Reviews the titling of all the assets and whether Joint Tenants with Rights of Survivorship makes sense - using the appropriate advice from a CPA and legal counselors.
b. Considers who will serve as the executor or trustee and whether a lack of continuity in the financial arrangements is an issue.
c. Analyzes the plan to distribute wealth at death to their spouse and descendants for both tax efficiency and control - not as a CPA or Attorney, but bringing in those advisers as appropriate.
d. Reviews the charitable inclinations at death for both tax savings and control issues.

To create this Comprehensive Wealth Management plan one must consult with an accountant and an attorney to assure accuracy and legitimacy.

THIS DOES NOT CONSTITUTE FINANCIAL ADVICE.

I STRONGLY urge everyone who reads this to consult with qualified advisers in each area (investments, insurance, accounting and legal matters).