Broker Check

Unintended Consequences

Avoid Unintended Consequences so that your money does not...

    1. Go somewhere you don't want it to go

      Something as simple as "filling in the blanks" on a beneficiary designation form can have ramifications never imagined. Standard beneficiary designation forms don't ask the right questions to assist you in assuring that you avoid unintended heirs.

      If you left an inheritance to your daughter and her husband divorced her four years later, it is likely that there isn't anything in your current estate plan that would prevent him from taking half of that inheritance with him.

  1. Run out sooner than you expect

    Portfolios can be designed to provide income even if you should live longer than you thought you might.

  2. Fail to take advantage of Distribution Strategies

    Clients and their advisors can fail to take advantage of available Distribution Strategies. Depending on your circumstances, you may be able to employ specific Non-IRA and IRA Distribution Strategies that, when applicable, result in virtually no income taxes from an investment portfolio for the first ten years following retirement. These strategies aren't included in the securities licensing exam or any continuing education courses we have encountered. They take advantage of universally available sections of the Tax Code, won't trigger an audit, and would create no problems if you were randomly audited. Yet, they are simple, effective, and are available for consideration in Gold Tree Financial planning relationships.

  3. Incur more risk than is appropriate or necessary

    In today's financial world, risk tolerance doesn't mean simply adjusting the ratio between equities and fixed income. Investment portfolios can be structured to provide growth potential, retirement income, tax efficiency, wealth transfer benefits, and legacy planning opportunities and you can choose how much risk you are willing to take while addressing each.

  4. Fail Diversification Tests

    Proper diversification isn't just about risk tolerance. At Gold Tree Financial, in addition to risk tolerance, portfolios are diversified based on Money Utility Model, i.e. what is it that you want your money to do for you? That might be to provide retirement income for you and/or your spouse, or possibly benefit your heirs in the future or both. Risk Tolerance doesn't address these differences.