Know Where You Stand Financially

IN THE EVER-CHANGING world of personal finance, the key to a secure and prosperous future lies in understanding where you’re headed financially — and that starts with creating a roadmap. A Lifetime Cash Flow (LCF) Projection is an essential tool for every financial plan, offering deep insights into how your income, expenses and savings will evolve throughout your life. By taking a proactive approach, you can optimize your financial and philanthropic decisions to ensure your long-term success.

An LCF Projection is a comprehensive financial model that forecasts your income and expenses throughout your life. This planning tool accounts for critical life events such as education costs, health care needs, selling a business, and retirement. Among other things, it considers all forms of income, expenses, taxes, inflation and investment growth to provide a clear picture of how your cash flow will evolve. Perhaps the biggest use of an LCF Projection is ensuring a comfortable retirement and not outliving your money.

For philanthropic-minded individuals considering a large gift to support a favorite charity such as Indiana University School of Medicine, you should consider having an LCF Projection prepared. It will help you determine how large a charitable gift you can “afford” to make during your lifetime. Plus, it provides you with peace of mind knowing you are making an informed decision.

You can learn more about LCF Projections by scanning the QR code and watching a 6-minute informational video. In the video, I sit down with Kenneth Klabunde, a local financial advisor and investment manager, who summarizes the benefits of an LCF Projection. He walks us through a hypothetical situation involving a married couple who considered making a large charitable gift to support the School of Medicine. Spoiler alert — even after making their large gift, the donors had plenty of money remaining late in life.

If you have any questions or want to learn more about the various tax-smart ways to make a charitable gift to support the School of Medicine’s mission of preparing healers and transforming health, please contact Tim W. Ueber, IU School of Medicine’s senior director of planned giving, at twueber@iu.edu or (317) 274-0187.