Realms of Financial Decision MakingTM


The Legacy Goal Pyramid: A Hierarchy Of Planning Values

The planning process is driven by three intrinsic objectives: (1) the need for financial independence; (2) the desire to leave a family legacy; and (3) the desire to have positive impact on society through a social capital legacy or, more simply, to make a difference. These objectives are more often at work unconsciously than they are consciously. Even though they may not be expressly understood and articulated, they often are applied intuitively to financial decisions. To accomplish all you can through your wealth and estate plan, you must carefully and confidently define these three realms of decision-making.

The Legacy Wealth Optimization Model: Integrating
the Realms of Planning

The Legacy Wealth Optimization Model represents the integration of Financial Independence, Family Legacy and Social Capital Legacy. Although many financial decisions are centered in a single realm, wealth optimization can only be achieved in an environment where the consequences of each decision are evaluated across all three realms of decision-making. Before wealth optimization can be achieved, a clear definition of financial independence, family legacy and social capital legacy must be developed. These three definitions establish the focus for future planning.

Although the size of the three goals circles will vary from one client to the next, all three are always present. However, at any given point in time, one or more of these areas may not show up on the radar screen. In other words, the issues related to each goal area are always present, yet not always at a conscious level. The purpose of defining each goal area specifically is to establish magnitude and importance at a given point in time.

Wise choices require clarity regarding what you want to accomplish in
each realm, and defining it is important to you.