S.E.C. Real Estate Observer

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What is your final objective in life? Not sure? Well, here is a little something to think about.

As a member or friend of the Society, you have worked your entire career to become “your own best client.” You have achieved your long-term goal of personal freedom and financial independence. You now have an income producing real estate portfolio and some cash in the bank. Your home is free and clear and you are ready to retire or perhaps slow down a bit and cherry pick your deals. Your wife is retired, your kids are married and it is time for the good life. So, bring on that cash flow…it’s time to spend the kids’ inheritance, right?

Now, before you get too excited about this picture, ask yourself these questions:

* Have I planned for my retirement properly?
* Do I fully understand my future financial and physical needs?
* Do I really have the assets and income to provide for the lifestyle I desire?

Now, while you are pondering those questions, think about what happens if?

* You are sued – are your assets protected?
* Your partner dies and you have a new partner, his wife?
* You suffer a stroke and are unable to mange your portfolio?
* You become disabled? Mentally or Physically.
* You or your spouse requires long-term health care?
* You check out of life before you are ready?
* Murphy’s Law Strikes again?

Interesting questions, huh? Well, here are a few ideas that, if you take them to heart, will help to protect yourself and your family and leave behind a well-conceived estate plan that will serve your family well.

First, educate yourself and family on your investments and in asset protection. Make sure you have a complete understanding about which insurance you need when and why. Improve your odds for success by using your knowledge and skills to track the changes that occur within the investment world that influence your cash flow. Always maintain and update your will and create a set of instructions for your spouse and the executor of your estate to establish a game plan for the future.

You should also review your investment portfolio regularly. Try creating a control sheet that lists all of your investments and tracks them from day one and answers these questions; Do you still need an exit strategy when you retire? Has anything really changed? When you die, which property or asset gets sold first and why? What would the impact, both from a legal and tax perspective, on your estate if your heirs need or want better liquidity?

As members of the Society, we stress to everyone we know to “Plan for Success, today and tomorrow…then reach for the stars everyday.” Set your sails toward the final objective.