Have a question? 720-328-2877 or Book a Call
WEALTH MANAGEMENT | FINANCIAL PLANNING
Net Worth and Cash Flow Statements
For many high-net-worth investors, the real problem is not a lack of assets, it's a lack of clarity.
Heirloom Wealth’s Net Worth and Cash Flow Statements are designed to answer those questions with math, not guesswork.
The Problem
Wealth Without a Clear Picture
Heirloom's Net Worth and cash flow statements allow you to know exactly where you stand at any time
As part of a comprehensive wealth management relationship, Heirloom creates and maintains detailed, living documents that show:
What you own and what you owe (Net Worth Statement)
How money is expected to move in and out over time (Cash Flow Statement and projections)
Many successful, educated investors arrive at Heirloom with impressive balance sheets—but no cohesive view:
Accounts everywhere. Old 401(k)s, IRAs, taxable brokerage accounts, bank accounts, HSAs, deferred comp plans, and more—across multiple custodians and firms.
“Back of the envelope” planning. Rules of thumb (“4% withdrawal rule,” “I think we’re fine”) stand in for a real plan grounded in detailed cash flow and longevity assumptions.
No unified balance sheet. You may know approximate totals, but not how assets and debts line up across entities, ownership types, and risk levels.
Spreadsheets that don’t update themselves. You or a spouse may have built a detailed Excel model—years ago. It now drifts away from reality with each new account, tax rule, or life event.
Advisors focused only on investments. Many firms talk primarily about performance and allocations, without ever building a robust net worth and cash flow framework that ties investments to your actual life.
The result: even very successful investors can feel uneasy. You may be doing “well on paper” but still wonder:
“Are we overspending?”
“Can we afford to help our kids with a home or business?”
“What happens if there is another big market drawdown—or one of us retires earlier than expected?”
Heirloom’s Approach to Net Worth And Cash Flow Statements
Heirloom’s Net Worth and Cash Flow Statements are part of an integrated planning process that covers everything money touches—investments, taxes, retirement income, estate and legacy, college funding, and more. The goal is simple: organize and simplify every aspect of every dollar.
Here’s how the process typically works:
Our Approach
1. Gather and Organize Every Relevant Piece
The relationship begins with a deep data-gathering process. Heirloom consolidates information across:
Investment and retirement accounts (taxable, IRA, Roth, 401(k)/403(b), deferred comp, etc.)
Banking and cash reserves
Business interests, equity stakes, and stock options
Real estate holdings and related liabilities
Loans, credit lines, and other obligations
Insurance policies with cash value or significant financial implications
You do not need to “clean things up” before you come in - that is part of the service. The objective is to see your entire financial life clearly, even if it has been scattered or ad hoc up to this point.
Our Approach
2. Build a Detailed Net Worth (Personal Balance Sheet) Statement
Using this information, Heirloom builds a Net Worth Statement that:
Lists assets and liabilities in an organized, intuitive format
Differentiates between liquid, semi-liquid, and illiquid assets
Highlights concentrations and dependencies (such as a large single-stock position or a business representing a significant share of your net worth)
Clarifies ownership (individual, joint, entity, trust) where relevant
This is more than a snapshot of “how much you’re worth.” It becomes the core document for discussions around risk, diversification, estate planning, and long-term goals.
Our Approach
3. Create a Cash Flow Statement and Forward-Looking Projections
Next, Heirloom builds a cash flow framework that captures:
Inflows: salary, bonuses, business income, pensions,
Social Security, rental income, portfolio withdrawals, and other sources
Outflows: lifestyle spending, debt service, insurance premiums, education funding, charitable giving, and major planned purchases or projects
Taxes: high-level estimates of federal and (where applicable) state income tax, plus the impact of capital gains, RMDs, and other taxable events
From this baseline, Heirloom develops forward-looking projections that show, year by year:
How your income and expenses are expected to evolve
Which accounts are funding which phases of your life
How your portfolio and net worth may change under different assumptions
These projections are stress-tested against various market and longevity assumptions as part of your broader financial plan.
Our Approach
4. Integrate Taxes, Investments, and Goals
The Net Worth and Cash Flow Statements are not standalone worksheets—they are integrated with:
Investment strategy. Heirloom uses your net worth and cash flow needs to inform portfolio design, risk levels, and asset location (which investments sit in which accounts).
Tax planning. Cash flow projections help guide decisions like Roth conversions, gain realization, charitable giving strategies, and retirement income sequencing—always in coordination with your tax professional.
Retirement income planning. The statements inform when and how to transition from earning to drawing on your assets, and how to balance withdrawals from taxable, tax-deferred, and tax-free accounts.
Estate and legacy planning. Clarity around where assets sit and how they are titled allows for better alignment with your estate documents, beneficiary designations, and legacy goals.
Because Heirloom’s philosophy is to integrate wealth and tax considerations under one roof, every cash flow and net worth discussion is connected back to your broader Live Well Plan™, not handled in isolation.
Our Approach
5. Review, Educate, and Update Continuously
A core part of Heirloom’s value is education. The Net Worth and Cash Flow Statements are used in meetings to:
Walk through where you stand today in clear, plain language
Show how spending, gifting, or retirement changes affect your long-term trajectory
Highlight tradeoffs: for example, retiring earlier versus keeping a business for a few more years, or increasing charitable giving versus accelerating mortgage payoff
These documents are updated regularly as part of your review cadence—often several times per year, especially early in the relationship or around
major transitions.
Over time, you build familiarity with the numbers and confidence in how your financial life actually works, rather than relying on vague rules of thumb.
What Clients Gain from Net Worth & Cash Flow Planning
Every client’s situation is unique, and Heirloom never guarantees specific outcomes. However, high-net-worth families who engage deeply with this process typically experience several important benefits.
A Shared, Concrete Understanding of “Where We Are”
Instead of relying on gut feel or scattered statements, you and your spouse/partner can see:
A clear net worth figure, updated and organized
How assets and liabilities are distributed across accounts and entities
A realistic picture of your ability to support your lifestyle, both now and in retirement
This reduces the uncertainty that often lingers even when assets are substantia
Better Decisions Around Spending, Saving, and Gifting
Better Decisions Around Spending, Saving, and Gifting
With a robust cash flow framework, decisions become less emotional and more data-driven:
“Can we increase travel spending?”
“Can we help our children with a home down payment or business?”
“What size charitable commitments fit comfortably within our plan?”
You can see the tradeoffs quantified in your projections, rather than guessing
Increased Confidence in Retirement and Transition Decisions
For clients approaching or in retirement, the Net Worth and Cash Flow Statements help answer questions like:
“Can we retire now, or are we better off waiting?”
“How do we structure withdrawals to support our lifestyle and manage taxes?”
“What happens if markets are rough early in retirement?”
While no plan can remove all risk, having a detailed, living model can significantly improve your confidence in major decisions.
Less Reliance on Spreadsheets and Mental Math
Many Heirloom clients started out managing their finances with personal spreadsheets or mental tracking. Over time, those methods can become unwieldy and error-prone, especially as net worth grows and complexity increases.
Delegating the heavy lifting to a professional team—while still understanding the outputs—can free up mental space and reduce the risk of important details slipping through the cracks.
Would Heirlooms Net Worth and Cash Flow Statements Benefit You?
Heirloom’s Net Worth and Cash Flow Statements are especially valuable for:
High-net-worth investors
with multiple accounts, entities, and income sources who want everything brought into one coherent framework.
Business owners and entrepreneurs
whose wealth sits across operating companies, real estate, and investment accounts and who need to see how it all fits together.
Executives and professionals
with equity compensation, deferred comp, and complex retirement packages.
Retirees and near-retirees
who want to move from “I think we’re okay” to “we have a clear, tested plan.”
Investors considering leaving a current advisor
because they have never been given a comprehensive net worth and cash flow picture, despite significant assets.
First-time advisory clients
stepping into higher complexity (sale of a business, inheritance, concentrated stock position) who want to start with a solid, organized foundation.
FAQs
Q: What is a net worth statement, and why is it important?
A net worth statement shows everything you own minus everything you owe—including investments, real estate, cash, and liabilities. At Heirloom, the net worth statement provides a clear snapshot of a client’s financial position and serves as a foundational reference point for decision-making across retirement, tax, and legacy planning.
Q: How does Heirloom use net worth statements within financial planning?
Net worth statements are not static documents. They are continuously updated as part of the financial plan to reflect changes in assets, liabilities, income, and goals. This allows Heirloom to evaluate how spending, saving, investing, and debt decisions impact long-term outcomes and probability of success.
Q: How does a net worth statement connect to cash flow planning?
Net worth and cash flow work together. Understanding how much is coming in and going out each year helps ensure spending aligns with long-term sustainability. If actual spending differs materially from planned spending, Heirloom can adjust account withdrawals, tax strategies, and investment positioning accordingly.
Q: What typically surprises clients when they see their net worth statement?
Many clients are surprised—often positively—by how much they have accumulated over time, especially after years of diligent saving and debt reduction. Seeing a consolidated net worth can provide reassurance, clarity, and confidence, particularly for clients who have never viewed their finances in one complete picture before.
Q: How often do clients review their net worth statement with Heirloom?
Clients review their net worth and cash flow statements at every planning meeting, often multiple times per year. This regular review ensures decisions remain aligned with reality, not assumptions, and allows the plan to evolve as life, markets, and priorities change.
If you value clarity, organization, and math-based decision-making as much as investment performance, this part of Heirloom’s service model is designed for you.
Schedule A Strategy Session with Our Team
This initial conversation is designed to understand your goals, current situation, and priorities. You’ll have the opportunity to ask questions, explore how Heirloom’s integrated approach works, and determine whether a longer-term relationship makes sense—without pressure or obligation.
Our Services
A coordinated approach to managing investments, planning, and cash flow, designed to bring clarity and confidence to your financial life today and over time.
Tax strategies integrated with your broader wealth plan, helping inform decisions, improve efficiency, and support long-term outcomes through coordinated planning.
Contact
6400 S Fiddlers Green Circle
Suite 1970
Greenwood Village, CO 80111
3200 Cherry Creek S Dr.
Suite 130
Denver, CO 80209
© 2026 Heirloom Wealth. All Rights Reserved.
The information provided on this website is for general informational purposes only and is believed to be from reliable sources; however, its accuracy or completeness is not guaranteed. This material is not intended to provide tax, legal, or investment advice. Individuals should consult with qualified tax or legal professionals regarding their specific circumstances. Nothing contained herein should be construed as a solicitation or offer to buy or sell any security.
Heirloom Wealth Management LLC takes data privacy seriously. In accordance with applicable privacy laws, you may request information regarding the collection and use of personal data or exercise applicable privacy rights.
Investment advisory services are offered through Heirloom Wealth Management LLC, a Registered Investment Adviser.