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From the issue: April 2008 Quarterly
 It's almost scary to turn on the news these days, given gas prices, volatile markets, and pending political change. However, I'll share a secret with you that might keep you from losing all hope.
Develop your own "SWAN" strategy, the brainchild of my friend and colleague Bryce James, and a brilliant investment advisor and money manager. He's concluded that quality planning is required, so that you can Sleep Well At Night, i.e. the "SWAN Strategy."
Bryce's unique methodology aligns an investor's goals and objectives, with available resources. It assesses risk tolerance, determines suitability, and produces a dynamic investment plan. Since life is dynamic, I thought, "Well, what would it take to have a comprehensive SWAN strategy? What if each of us created a plan to pursue Success on Purpose (SOP), in order to Sleep Well at Night (SWAN)?"
You can most efficiently do this, by getting your "SWAN" toolkits in order.Your toolkits consist of: the law (estate planning), investments and retirement (lifestyle and resource planning), comprehensive risk management (liability, life, health, disability, long term care, insurance planning), and accounting (tax compliance and tax reduction). I've observed that the best results come from working with professional advisors, that coordinate their advice with each other; producing a synergistic effect.
Is there a deep concern or fear that keeps you awake? What is your most important core value, personal or business goal? Knowing these factors allows you to select the best advisor, and develop your game plan. However, just remember that the solutions that exist can cross professional lines. So again, it is critical that your advisors coordinate their advice and recommendations with each other.
You can begin by implementing a Will, or a Living Trust based plan. A couple of things should emerge, from whichever one you ultimately decide to implement.It is very important that there be a legal structure that keeps you in control while you are alive. In the event that you have passed on, it should also appoint the best possible person or team to carry out your wishes. A welldesigned plan should provide detailed instructions. This plan can help others help you, under adverse conditions, as well as to carry out those things that are important to you. Are you confident that if you become legally incapacitated, your spouse or appointee will manage your finances and investments with competence? If you have a pet, what would happen to Muffy or Fluffy should something happen? Are you in a blended family with children of prior marriages? If so, is each part of the family protected and provided for financially? Which side of the family will be in control?
If you start with the resource side, you must know your cash flow requirements. What is required to sustain your lifestyle, and what cash flowwould create surplus? Using a budget alone does not allow for flexible management the way a corridor would...and we all need a safety buffer.So, use your budget as a measurement tool of cash flow,but you should also know your upper and lower limit for cash flow.Have a management plan that can keep you between your floor and ceiling as the markets change.The key is to know your numbers, and measure your desired results against actual results.Then, you can safely adjust them and do it all over again. It is wise to plan for the worst, and hope for the best.
Do you want to remain in your home as you age? Will a caregiver be paid from your investments, or will you depend on the largesse of family? What if a family member does this duty – do they ever get a day off? What about the financial or emotional hit they will take? You can pay for this out of investments, or you can offset certain likely costs by considering the role insurance might play in providing you with options.Many people choose to self-insure, but this impacts cash flow and may devastate resources. Having a competent, insurance professional will help you evaluate long-term care insurance,and can be central in your risk management planning.
Efficiency is a key factor provided by your CPA.What taxes are you paying or facing in future years? Are you taking deductions properly? Are you minimizing investment costs and harvesting losses against gains? Does illiquidity threaten your estate and options?
The secret is to plan, to implement, and then to monitor and maintain your plan. There is no shortcut, but there is plenty of help out there. Talk to your professional advisors today, and harness their experience for your personal benefit.You will then "(SWEN)" Sleep Well Every Night.
C. Dennis Brislawn, Jr. is an Attorney & Counselor at Law with BRISLAWN LOFTON, PLLC. For more information please call (425) 803-9500, or visit www.brislawnlofton.com
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