Confident Wealth

More With The Scorecard


In this episode, the Bush brothers, Bill and Pete of Horizon Financial Group, talk about three important categories on the Confident Wealth Scorecard: tax efficiency, business continuity and estate planning. Tax efficiency is a year round process that needs professional intervention. It is also critical that you force different agencies to work together for the best results. Business continuity and estate planning are essential to ensure that your loved ones and employees are well supported and have all they need to thrive. Listen as Bill and Pete share important insights that will increase your confidence in how you manage these critical issues.

Time Stamped Show Notes:

  • 00:41 – In the last episode, we talked about the Confident Wealth Scorecard and its 8 categories
  • 01:42 – Today, we will discuss the categories of the Confident Wealth Scorecard, starting with tax efficiency
  • 02:39 – If you are doing your own taxes or getting a help from a non-CPA friend, it is likely that you are not taking advantage of all tax savings
  • 03:38 – Too often, we bring our tax receipts and documents to a professional well after the opportunities for tax savings is open to us
  • 04:40 – Proactively working with a professional gives you the CONFIDENCE that you are maximizing your deductions
  • 05:20 – You would score a 4, 5, or 6 on the Scorecard if you are using a professional but are not confident about whether or not you’re maximizing savings because of the way you interact with the person
  • 06:06 – Realize that tax efficiency is a year-round process; maximizing return of point contribution, using tax deferred investments and getting advice from a CPA before making a decision that has tax implications will score you a 7, 8, or 9
  • 06:43 – Avoid being lax and overconfident with your tax planning
  • 08:24 – Ensure that the person that you are relying on for tax advice is turning over every stone
  • 09:31 – Common for professionals, such as a CPA, lawyer and investment advisor, to be in different silos and totally disconnected; FORCE them to connect with each other
  • 10:36 – Good to have more than one set of eyes
  • 11:48 – The next categories we will discuss today is Business Continuity and Estate Planning
  • 12:14 – A successful business ends up becoming a large part of a person’s net worth; there is a concentration risk since up to 80% of your wealth is concentrated in just one area
  • 13:10 – You would score poorly on the scorecard if you are at an advanced age, and have not thought about exiting the business at all
  • 13:21 – Often, people are too busy working IN the business to work ON it
  • 14:21 – As you move slightly higher on the scorecard, you come across people who have an outdated exit strategy and improper documentation
  • 15:20 – Oftentimes, the business OUTGROWS the planning you have in place
  • 15:44 – Even if you do not own a business, you should have proper estate planning in place
  • 16:37 – Not focusing on estate planning often results in liquidating the company to meet estate tax liabilities
  • 17:00 – You score a 7, 8, or 9 on the scorecard if you have taken the necessary estate planning steps, but are unsure if your business or heirs will have the resources to implement your plan
  • 17:57 – Can take up insurance which will create liquid cash to pay off the IRS in case of death
  • 18:33 – We explain what is takes to score a 10, 11, or 12 in estate planning on the wealth scorecard
  • 19:23 – Ensures that the business continues to thrive, support the family and all its employees
  • 20:17 – 5% to 10% of business owners fall in this top category
  • 21:08 – By using the scorecard, you can become aware of the ideal situation and know where you stand in respect to it
  • 21:58 – In the next episode, we will look at Wealth Building and Cash Management
  • 22:06 – Check out our website to know more about our team and our various services

Confident Wealth Scorecard

3 Key Points:

  1. Tax efficiency is a year-round process; access the help of tax professionals to ensure every tax-saving opportunity is being utilized.
  2. A business often outgrows the planning you have in place; plan properly to ensure that a business is able to meet any IRS demands and can survive and thrive.
  3. Even if you do not own a business, you SHOULD have proper estate planning in place to ensure that you can pass on your belongings to your loved ones.