Wealth Preservation Considerations

By Peter A. Racen, CLU®, ChFC®, CASL®, AEP®, CFP®
Chief Executive Officer
Racen Wealth Management

While risk management is the base of the financial planning pyramid, wealth preservation and distribution sit at the top. This comes into play down the road when you’ve already accumulated your wealth over the years and you want to preserve it for the rest of your life. But, how is that done?

When we’re building a wealth preservation and protection plan, people typically work through this hierarchy:

  1. Protect yourself first
  2. Take care of your family
  3. Take care of the charities most important to you

So, how is that implemented?

Biggest Challenges

One of the biggest roadblocks to successful wealth preservation and distribution is clarity. Determining what’s most important to you and your financial future can be daunting.

When you work with a financial advisor, they’ll walk you through a discovery phase to help determine your goals, objectives, and priorities. This exercise helps you and your planner gain clarity to form a plan that’s right for you.

The next biggest obstacle: procrastination. Financial advisors can take this process off your plate while also making sure the plan is actually being implemented and managed properly.

Complexity can also hinder people from succeeding in their wealth preservation plans. This type of planning can have a lot of moving parts and it’s easy to get overwhelmed. There are many different planning strategies from a legal and tax standpoint, and identifying what’s right for your life and your objectives can be confusing.

Financial advisors work with you to determine how much complexity you are willing to tolerate. They’ll present various strategies for you to consider and help you identify which plan you’re most comfortable with in the long-term.

Shifting Control

When it comes to your finances, it can be difficult to let go of some of the control. However, when it comes to estate taxes and liability, that might be the best strategy.

For example, shifting assets into an irrevocable trust that requires the person establishing the trust to give up control helps mitigate risk and strengthen long-term financial health. Although the grantor can no longer maintain the same type of control over assets as when they were owned individually, this may be a better long-term strategy.

Estate Planning

One of the most common aspects of wealth preservation and distribution is estate planning. This type of planning helps manage the amount the government can claim when you pass away, better protecting the wealth you’ve accumulated throughout your life.

With proper estate planning, you can minimize the estate taxes that are subtracted from your wealth to preserve more for the next generation.

Estate planning is also used to ensure that your money goes to the individuals or organizations you designate. Whether you want to pass your wealth on to certain family members and/or a specific charity, proper estate planning keeps your financial objectives on course even after your death.

There are many components to an estate plan that must be properly put in place; even the most well thought out plan can stray off track. When you work with an experienced financial advisor, you’ll have confidence that everything is being implemented properly to preserve your wealth for your and your family’s long-term financial health.

The information contained in this article is general in nature and is not legal, tax or financial advice. For information regarding your particular situation, contact an attorney or a tax or financial professional

Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company (NM) and its subsidiaries. Peter Andrew Racen uses Racen Wealth Management as a marketing name for doing business as a representative of Northwestern Mutual. Northwestern Mutual Investment Services, LLC (NMIS) (investments and brokerage services) a registered investment adviser, broker-dealer, and member of FINRA and SIPC. Northwestern Mutual Wealth Management Company® (NMWMC) (investment advisory and trust services), a federal savings bank. NM and its subsidiaries are in Milwaukee, WI. Peter Andrew Racen is an Insurance Agent of NM; Registered Representative of NMIS and Advisor of NMWMC.  


Racen Wealth Management

Peter Racen, CFP®, CLU®, ChFC®, CASL®, AEP®

Racen Wealth Management


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