To be financially successful it’s necessary to make smart money decisions in each of the following areas.
Cash Management
Cash management is how we spend our money and usually starts with our first car payment and extends to rent and mortgage payments, credit card debt, dealing with all our family bills, and keeping our taxes at the lowest possible level.
Risk Management
The next step involves protection against loss. Wills and trusts are valuable tools to manage risk; as are property insurance, health insurance, life insurance, long term care insurance, and income protection. Taxes are also a risk. The only meaningful dollar is the one that can be spent.
Accumulation Goals
We all need to save money for some reason. Educating our children is a very common goal. Buying a home, or a second home, and building an investment portfolio are typical accumulation goals.
Financial Independence
This is retirement. It’s important to take steps now to ensure that we can retire comfortably when we want to. There are three retirement issues that must be dealt with. They are taxes, health care and loss of purchasing power. Getting through retirement is the goal.
Estate Planning
This means recognizing death is inevitable and planning for the ultimate transfer of our assets to our heirs. Doing so involves tax planning so as much as possible goes to your heirs and not to the government.
Making smart money decisions in today’s world is not easy. Two basic steps are involved. First you have to recognize it is important to have a plan, and follow a path. Second, you have to decide to develop and implement a sound financial plan.
Contact our office to schedule a time to fill out your smart money path questionnaire, and start down the path to financial success.