A Modern Approach to Building, Protecting, and Strategically Managing Wealth

In this month’s issue of my planning commentary I’ll discuss, at a high level, the topics most people need to think about as regards their financial health. Over the next few commentaries, I’ll go into more depth on each section.

Financial planning is not a one-time event but an evolving process that must respond to shifting markets, changing life circumstances, and evolving goals. To succeed, individuals and families should organize their planning around three core pillars: Offense, Defense, and Strategy.

Offense focuses on growing wealth through investments.
Defense protects that wealth from loss, risk, or erosion.
Strategy guides how to align these efforts with long-term goals, tax efficiency, and life priorities.

I. Offense: Growing Your Wealth

Growing wealth requires intelligent risk-taking, disciplined investment, and patience. Two cornerstone vehicles for offensive wealth-building are:

A. Stock and Bond Market Investments

Growth: Over time, stocks have typically outperformed inflation and most asset classes offering higher potential returns. Bonds provide a lower-risk option for generating income, but selecting the right stocks and bonds requires careful research and consideration.
Tax-Efficient Placement: Understanding the tax implications of different account types (e.g., Roth IRA vs. brokerage accounts) and asset location strategies enhance after-tax returns.
Time: Time is your best friend when it comes to growing wealth. Compound interest is sometimes referred to as the 8th wonder of the world.
Risk Management: Proper diversification, asset allocation, and position sizing are critically important in reducing the risk of investing.

B. Real Estate Investments

Income and Appreciation: Direct ownership of rental properties can provide both cash flow and long-term appreciation. Real estate investment trusts (REITs) offer a more liquid and diversified approach.
Leverage and Depreciation: Real estate allows for responsible use of leverage and offers depreciation deductions, which can shield income from taxes.
Real Estate as a Diversifier: Property exposure adds a valuable asset to a portfolio that doesn’t necessarily go up and down in sync with stocks and bonds which may help reduce overall volatility.

II. Defense: Protecting What You’ve Built

Wealth is not just built—it must be protected. A strong defensive strategy guards against financial threats including death, disability, lawsuits, accidents, and poor planning.

A. Estate Planning: Wills, Trusts, and Legacy

Wills and Powers of Attorney: Every adult should have a will, a financial power of attorney, and healthcare directives.
Trusts: Trusts can help avoid probate, provide asset protection, provide greater control over how and when assets are distributed, and allow seamless management of assets in the event of incapacity.
Estate Tax Planning: High-net-worth individuals should engage in estate tax mitigation strategies, including gifting, irrevocable trusts, and charitable planning.

B. Business Entity Structures

Asset Protection: The right structure (LLC, S Corp, C Corp) can protect personal assets from business liabilities.
Tax Optimization: Proper entity selection also affects how income is taxed and what deductions are available, including health insurance, retirement plan contributions, and home office expenses.
Succession Planning: A comprehensive exit strategy ensures a business owner is able to derive value from the business when it’s time for someone else to take over.

C. Risk Management Through Insurance

Property and Casualty Insurance: Adequate coverage for home, auto, and liability (including umbrella policies) prevents major disruptions.
Life Insurance: Essential for income replacement, estate liquidity, and sometimes as a wealth transfer vehicle.
Disability Insurance: Protects against the loss of income due to illness or injury during peak earning years.
Long-Term Care Insurance: Essential for retirement planning, helping preserve assets and relieve family burdens.

III. Strategy: Coordinating and Optimizing Your Financial Life

Strategy ties together offense and defense with vision and foresight. A smart strategy maximizes efficiency, minimizes taxes, and adapts over time.

A. Financial Planning

Comprehensive Planning: A living financial plan addresses budgeting, cash flow, debt, investment allocation, insurance, retirement, taxes, and estate planning.
Regular Updates: Plans should be revisited at least annually or upon major life changes such as marriage, birth, job change, etc.
Goal-Based Planning: Each plan should reflect both tangible goals (e.g., retirement, college funding) and intangible ones (e.g., peace of mind, financial independence).

B. Tax Strategy and Minimization

Proactive Tax Planning: Timing of income and deductions, capital gains harvesting, and charitable giving strategies to reduce taxable income.
Legal Tax Shelters: Business owners and high earners can use defined benefit plans, charitable trusts, and tax-advantaged investments.
Coordination with CPAs: Integrating tax planning with financial and investment decisions creates optimal outcomes.

C. Tax-Advantaged Financial Products

Retirement Plans: Maximize employer-sponsored plans (401(k), 403(b), SEP-IRA) and individual options (Traditional and Roth IRAs).
Life Insurance as an Asset Class: Permanent life insurance offers tax-deferred growth, tax-free loans, and estate planning benefits when structured correctly.
Health Savings Accounts (HSAs): These triple-tax-advantaged accounts are underutilized for healthcare and retirement.

D. Education Planning

529 Plans: Offer tax-deferred growth and tax-free withdrawals for qualified education expenses.
Custodial Accounts (UGMA/UTMA): Provide flexible access for minors but lack tax benefits.
Roth IRAs for Teens: Great for older children with earned income, especially if funds aren't immediately needed.
Scholarship and Financial Aid Strategies: Understanding how assets and income affect aid eligibility can result in substantial savings.

Whether you’re just beginning your financial journey or reassessing a long-established plan, this three-part framework offers a roadmap to informed, proactive, and resilient wealth management.

True financial security and success are not achieved by luck or guesswork. They are the product of a thoughtful, disciplined approach that includes growth (offense), protection (defense), and planning (strategy). Individuals who integrate all three dimensions into their financial decision-making are better positioned to weather volatility, protect their families, and reach their long-term goals with clarity and confidence.

The problem for many people is that while they understand and agree these are important life concerns to address, there is just never a good time to do it. Many people spend far more time planning their summer vacation or researching the next car they plan to buy than they ever spend building and maintaining a well thought out financial plan.

If this describes you, or if you spent some time on this years ago and not since, please reach out to me at 970-376-3511 or click here to schedule some time on my calendar. In the famous words of Larry the Cable Guy, we’ll take on most of the work and help you to Git Ur Done!

Ken Armstrong, CFP®, RICP®, ChFC®, CLU®, CASL®, CLTC
CEO & Senior Wealth Management Advisor
Elevate Capital Advisors

Legal Information and Disclosures
This commentary expresses the views of the author as of the date indicated and such views are subject to change without notice. Elevate Capital Advisors, LLC (“Elevate”) has no duty or obligation to update the information contained herein. This information is being made available for educational purposes only. Certain information contained herein concerning economic trends and performance is based on or derived from information provided by independent third-party sources. Elevate believes that the sources from which such information has been obtained are reliable; however, it cannot guarantee the accuracy of such information and has not independently verified the accuracy or completeness of such information or the assumptions on which such information is based. This memorandum, including the information contained herein, may not be copied, reproduced, republished, or posted in whole or in part, in any form without the prior written consent of Elevate. Further, wherever there exists the potential for profit there is also the risk of loss.