Navigating the Three Stages of Wealth Management: How Logix Can Help

Financial success often hinges on understanding and navigating the three stages of wealth management: accumulation, preservation, and distribution. Each stage is critical and requires a tailored approach to ensure long-term financial stability and prosperity. Let's delve into how your credit union can be a pivotal ally in guiding you through these phases, addressing key themes such as emergency funds, retirement planning, and estate planning.

Stage 1: Wealth Accumulation

The journey to financial independence begins with wealth accumulation. This stage is characterized by building up your assets and establishing a strong financial foundation. Here are the key themes and how Logix can assist:

• Emergency Fund

An emergency fund is your financial safety net. Ideally, it should cover three to six months of living expenses. Your credit union can help by offering high-yield savings accounts, making it easier for you to set aside funds that are readily accessible in case of unexpected expenses.

• Borrowing Money

Strategic borrowing can accelerate wealth accumulation. Whether it’s a mortgage for your first home or a loan to start a business, your credit union provides tailored borrowing solutions with competitive interest rates and flexible terms. Expert advice from Logix can also help you understand the implications and benefits of borrowing.

• Disability and Life Insurance

Protecting your income and your family is crucial. Some employers offer disability insurance to their employees but consider private disability insurance coverage also to ensure that all expenses are covered in a time of need.

• Retirement Planning

Starting early with retirement planning can significantly enhance your financial security. Logix offers various retirement accounts, including IRAs with professional guidance on the best investment strategies that can potentially help you meet your long-term goals.

• Investing

Investing is a cornerstone of wealth accumulation. Logix can provide access to a range of investment products, from mutual funds to individual stocks and bonds. Financial consultants can help you develop a diversified investment portfolio tailored to your risk tolerance and financial objectives.¹

• College Planning

For parents, planning for children's education is a significant financial goal. Logix offers 529 plans and other educational savings accounts that provide tax advantages, helping you accumulate funds for future college expenses efficiently.

Stage 2: Wealth Preservation 

As you transition from accumulating wealth to preserving it, the focus shifts to protecting your assets and ensuring they continue to grow with minimal risk. Here's how Logix can support this phase:

• Cash Reserves

Maintaining adequate cash reserves is essential for liquidity and peace of mind. Logix offers money market accounts or certificates of deposit (CDs) with competitive interest rates, ensuring your cash reserves are both accessible and growing.

• Estate Planning

Estate planning is about ensuring your wealth is distributed according to your wishes. Logix partners with reputable estate planning firms who provide trust and estate planning services, including the creation of wills and trusts, to help you navigate the complexities of passing on your assets.

• Long-Term Care Insurance

As part of preserving wealth, long-term care insurance can protect your assets from the high costs of extended medical care. Logix partners with insurance providers to offer comprehensive long-term care policies.

• Annuities

Annuities can provide a steady income stream during retirement, helping to preserve your wealth over the long term. Logix can guide you through the various types of annuities and help you choose one that aligns with your retirement income needs.²

• Medicare

Navigating Medicare can be complex. Logix has specialists who can help you understand Medicare options and supplemental insurance plans, ensuring you have the coverage you need without unnecessary expenses.

Stage 3: Wealth Distribution

In the final stage, the focus is on distributing your wealth efficiently and according to your plans. This includes planning for retirement income, managing taxes, and ensuring your estate is in order. Your credit union can play a crucial role in this stage:

• 401(k) Distribution Planning

Proper planning for 401(k) distributions can minimize tax liabilities and provide you with options that can generate a steady income stream in retirement. Logix offers advisory services to help you understand the rules and strategies for withdrawing from your retirement accounts.

• In-Service Distributions

For those who are still working but need to access retirement funds, in-service distributions can be a valuable tool. Logix can provide guidance on how to utilize these distributions without jeopardizing your retirement security.

• Estate Planning (continued)

In addition to setting up your estate, ensuring that it is executed correctly is crucial. Logix partners with corporate trustees who offer executor services to manage the distribution of your assets according to your estate plan, minimizing the burden on your loved ones.

• Buying a Home

Buying a home is a significant financial decision that intersects with all three stages of wealth management. Whether you’re purchasing your first home, upgrading, or downsizing, Logix offers mortgage products tailored to your needs, along with expert advice to navigate the home-buying process efficiently.

Conclusion

Navigating the stages of wealth management—accumulation, preservation, and distribution—requires strategic planning and informed decision-making. Logix is more than a place to store money; it’s a partner in your financial journey. From setting up an emergency fund and investing for retirement to planning your estate and managing distributions, the comprehensive services and expert advice available at your credit union can help you achieve financial stability and peace of mind.

By understanding and leveraging the resources and guidance Logix provides, you can confidently navigate each stage of wealth management, ensuring a secure financial future for yourself and your family. Remember, the journey to financial wellness is ongoing, and with your Logix by your side, you’re well-equipped to face whatever comes your way.

Sources and Important Disclosures:

1 The financial consultants at Logix Financial Services are registered representatives with, and securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Logix Federal Credit Union (LFCU) and Logix Financial Services are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using the name Logix Financial Services, and may also be employees of LFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of LFCU or Logix Financial Services. Securities and insurance offered through LPL or its affiliates are:

Not Insured by NCUA or Any Other Government Agency | Not Credit Union Guaranteed | Not Credit Union Deposits

Logix Federal Credit Union provides referrals to financial professionals of LPL Financial LLC (“LPL”) pursuant to an agreement that allows LPL to pay the Financial Institution for these referrals. This creates an incentive for the Financial Institution to make these referrals, resulting in a conflict of interest. The Financial Institution is not a current client of LPL for brokerage or advisory services. 

Please visit https://www.lpl.com/disclosures/is-lpl-relationship-disclosure.html for more detailed information. 

2 Annuities are insurance products. Withdrawals before the age of 59 ½ may subject earnings to a 10% penalty.

Author: Ismael Navarro