Estate planning for physicians, dentists, lawyers, accountants, veterinarians, and other professionals presents unique challenges. Professionals are typically better educated, have a higher net worth, different lifestyles, and a higher assumption of professional risk. Not only do professionals need different advice as to wealth management protection they need better and more comprehensive advice.
The best practices of professional wealth management and estate planning involve your attorney using a collaborative approach, working closely with other professionals to maximize your wealth and minimizing your risks. When your attorney pairs his or her legal knowledge with an experienced CPA and a skilled financial planner the results can be extremely beneficial to you. A skilled wealth management and estate planning team focuses on the principles of utilizing the assets you already have to build your wealth steadily and over time. It is important to develop an individualized plan that focuses on protecting your business and personal assets while minimizing estate and income taxes. This process should include retirement planning and executing an exit strategy for your practice.
Your unique professional wealth management strategies should take into account your professional salary, your home and personal assets, your investments, and investment income. Your portfolio should be diversified and include investments with differing categories of risk. Customized estate planning uses many legal mechanisms to protect and preserve assets and minimize tax liability such as Revocable Trusts which incorporate Legacy Trusts for children, Irrevocable Life Insurance Trusts to minimize estate tax, and Tuition Savings Accounts that allow money to be gifted without tax consequences. When these legal asset protection mechanisms are combined with traditional retirement planning methods such as IRA’s, 401(k)’s, and annuities and sound investments such as securities, stocks, and mutual funds the results can be astonishing.
Retirement planning for professionals incorporates wealth management strategies, investment strategies, and comprehensive estate planning to achieve wealth accumulation, asset protection, and minimization of tax burdens for long term financial success. Good estate planning always assesses future tax implications that accompany the transfer of assets. When a good estate attorney collaborates with a knowledgeable CPA and a skilled financial advisor the client will see immense benefits. To achieve maximum success you should start planning your professional financial future sooner rather than later. The time to consult a trusted and skilled attorney who is experienced in professional wealth management, investment planning, and comprehensive estate planning is now.