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Most of us face the challenge at least every two years-find that perfect ram to improve the genetics of our flock. Whether you have been breeding sheep for generations or just starting, finding a ram that fits your style of management and improves your flock is a daunting task. We've all been to a major sale or to the farm of a prominent breeder to find the right package. Do you just go and see what's there or do you have a shopping list? I don't know who should receive the credit, but someone we all know said "If you don't know where you're going, any road will do." With a list of flock improvements to be made, (stronger pasterns, higher hip, tighter hide, finer fleece) you can sort through a class or pen of rams to find the right ram for your flock. The champion or class winner may or may not be the best fit for you.

Likewise, the most expensive and intricate financial plan may or may not adequately provide for you and your family in the coming decades. In my previous column, the general process of developing a financial plan was reviewed. Like genetic selection, if you don't know where you're going…..In fact, you already have a plan-the government wrote it for you. If that one's okay, so be it, otherwise, you need to take action.

Remember, a good financial plan is like breeding sheep, it takes months of planning and a lifetime to unfold. As a financial advisor, I always begin my initial interview discussing a person or family's mortality, morbidity, estate and retirement. Wow, 1 out of 4 is fun-that good ONE in the barn.

Nobody likes to talk about dying or being dependent on someone else for their daily care, but without discussing it, a plan cannot be made. So where do you start? Two basic documents are needed--a last will and testament and a personal/business financial statement. The will allows you to decide what happens when you die or if you need dependent care. The personal financial statement tells you what needs to be protected for generational succession and what is available to carry out your last wishes. Think of your will as the genetic shopping list and the financial statement as the rams available for selection.

If you do have a will and have carefully reviewed the contents and consequences in the last 5 years, congratulations, you're ready for the next step. If you cannot answer yes, then you need to consider the following. How will my burial be paid? Will my surviving spouse have adequate CASH to live comfortably while other assets are liquidated to pay debt? Do you have a family member in need of dependent care if you are not here? Will the federal (and now some states) estate taxes take a bite? Has the term "per stirpes" been used to pass assets to the next generation? Do you have a charitable intent? Do all the family members understand or at least know of your intent if something doesn't seem quite fair? In my banking career, I witnessed many instances of family malfunction when one sibling received more than another. Maybe it really wasn't fair….or maybe the "winning" sibling provided daily care for parents while the other lived 4 hours away. Whatever YOU want is what should happen and "fair" doesn't have to mean "equal." Please consult a good attorney when doing your will. It truly is the basis for generational succession and it can have an impact on heirs you will never know.

With your will finished, signed and put away safely, turn your attention to a good, detailed financial statement. If you have a computer, use it so you can update it periodically (at least annually). A financial statement needs to list all of your assets (what you own) and all of your liabilities (what you owe). The difference is your net worth, or what you have to provide for your future and future generations. Whether you have a little or a lot, there are many options available to provide for your long term needs and still provide a "nest egg" to those who follow. Just leaving a family debt free for the first time in decades can be a real nest egg!

With your will finished (what you want done) and your financial statement in hand (what you have today), it's time to work to match your will with your finances. If you plan to pass the farm, is there a debt to pay? Will estate taxes require that half of the farm be sold to pay the tax? What if you are in a nursing home for 5 years (current average is about $68,000 per year)? How do I provide for the child who chose to stay on the farm and the one who took on city life? Has college been funded?

The list is long. You need to prioritize the needs vs. wants. Some items are more necessary than others. Have a list and check them off as a solution is found and action is taken to solve the challenge. Of course, you should always discuss any tax or legal matters with the appropriate professional. Next month, I'll be discussing what has become the elephant in the pasture that few have recognized long-term care.

This article was written by Stephen Francis, a Polled Dorset breeder from Wilmington, IL. He is also a professional financial advisor with Raymond James Financial Services, Inc. Member FINRA//SIPC. He may be reached at 815-476-2105 or steve.francis@raymondjames.com.

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