David shares insights from his book, Uncommon Success: How Family Stewards Produce Intentional Wealth, on prosperous family wealth planning strategies such as “stress testing” financial plans.
What Does Financial Plan Stress Testing Look Like?
The simplest way to explain the stress testing process is to look at the sum total of your financial picture and ask “what if?”
Some more pointed questions in the financial stress testing process include:
- What happens to my assets when I pass?
- Who will execute my estate plan?
- Does my plan cover my family’s needs?
Although these all sound highly emotional, it’s all part of a family steward’s obligations to see to the needs of the family should they or another contributor to the family’s well-being should pass on, become ill, or have their assets threatened by legal circumstances.
Staying Focused is Key
There is a clear process for testing the family’s financial plan for the future once the initial objectives are laid out. Whether it’s debating wills versus trusts, exploring retirement funding options beyond employee plans, or ensuring your health care needs are being met, each aspect of the total financial plan will come into focus for those who systematically vet their options.
For Family Stewards in Charge of Financial Planning, Keep Focus on the Family
No family steward is an island, spouses, siblings, and adult children will often have input on the direction of a family’s wealth, especially when more complex situations like trustee appointment and real estate are involved. Doing a financial plan stress test can be an exercise in stress of the personal variety.
Seeking financial planning advice from a professional or team is a great way to ensure your family is protected, especially when conflicts arise about the best course of action. Sometimes you just need a second opinion from the outside. It is an excellent way to back your personal financial objective building with outside expertise, so you can focus on what really matters: family.
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Financial Harvest Wealth Advisors Team
The Financial Harvest Wealth Advisory team is dedicated to helping address the unique financial planning needs of each family, business, or individual that we have the privilege to serve. Our team members are focused on client success and helping our clients realize their most significant and meaningful life goals.