The Planning Pyramid illustrates the three focal points of impactful and effective financial and estate planning.

The foundation of the pyramid is financial independence. Until you have confidence that your plan provides sufficient resource to support you throughout your lifetime, it’s difficult to progress to higher levels of planning.

The next level is family legacy. Once you are confident about your financial independence, the next step is to consider why you want to create a family legacy. What values are you hoping to support and promote? How much do you want to direct to your loved ones? Maximizing wealth to your heirs and minimizing taxes, while a worthwhile goal, fails to answer the key question – for what purpose?

The pinnacle of the pyramid is social capital legacy. Gifts to charitable causes or organizations need not come at the expense of your own financial needs or providing for your family. With the right kind of planning and expertise, you can usually redirect assets otherwise earmarked for taxes to personally chosen causes and organizations that will achieve the kind of social impact you hope to make.