Financial Pyramid There are six areas to a comprehensive financial plan. We illustrate those areas in the form of a pyramid to show how one area builds upon another. Since the action in one area affects all the others, a complete financial plan should address all six areas. Financial PositionCash reserve levelsCash reserve strategiesDebt managementCash Flow ManagementNet worthDiscretionary IncomeExpected large inflow/outflowLines of creditRisk ManagementLife InsuranceDisability Income Insurance optionsLong term careUmbrella liabilityDeductibles vs. Cash ReservesPolicy statusPolicy loansBeneficiarySpecial NeedsProperty and Casualty (Home and Auto)Wealth AccumulationAsset allocationEducation PlanningLump sum accumulationOptions/restricted stock/non qualified deferredOngoing investment feesRisk toleranceTax implicationsCost BasisDiversification strategiesDollar cost averagingMarket TimingTax PlanningTax reductionsTax deferralTax avoidanceFutures taxes duesWithholdingTax diversificationQualified investmentsNon-qualified investmentsEffects of liquidationFiling statusBusiness ownershipNon traditional ownershipRetirement PlanningMinimum distributionsPre-retirement strategies401KsIRAMedicare/MedigapSocial securityRoth conversionsIncome streamsHealth careTax transitionsRisk toleranceTiming issuesEstate PlanningEstate balancingCapital transferAsset ownershipTrustsWillsTrust fundingIRDSuccession planningSpecial needs dependentsMinor childrenGeneration skippingShort term life expectanciesEstate liquidityAny discussion of taxes is for general information purposes only, does not purport to be complete or cover every situation, and should not be construed as legal, tax or accounting advice. Clients should confer with their qualified legal, tax and accounting advisors as appropriate. Estate Planning services are provided working in conjunction with your Estate Planning Attorney, Tax Attorney and/or CPA. Consult them for specific advice on legal and tax matters.