| What do you need to have in order to put
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| | advisor, I was asking clients about their
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| together a financial plan? Money, of
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| | source of income. We would discuss how
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| course, or access to it. And money, it
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| | they could allocate that income to save
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| seems, never stays still. It either grows
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| | more money, and to minimize taxes, pay
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| over time, or shrinks away, but like
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| | down debt, and accumulate an amount of
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| water, it has to flow to stay healthy. So
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| | money so that 'one day' they could
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| why doesn't your financial advisor
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| | 'retire' and live off this accumulated
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| discuss the income and cash flow side of
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| | savings.
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| planning with you? Might it be that they
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| | The problem is, this model means that you
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| haven't been trained to?
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| | are looking primarily at allocating the
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| This might be one of the biggest AHAs
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| | existing resources. You focus on reducing
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| I've ever had (at least as far as
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| | expenses, such as spending, taxes, and
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| personal finance goes). I can hardly
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| | interest rates on debt, while trying at
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| believe it even after having a couple
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| | the same time to put as much as possible
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| weeks to let it sink in. Here are some
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| | aside and get a high return on that money
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| questions to ask yourself and your
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| | so it can grow to large amount.
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| advisor:
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| | This conventional teaching is actually
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| - What does it take to create personal
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| | contributing to the number-one stress
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| savings?
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| | people have: running out of money.
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| - What does it take to have money to
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| | Why? Because for our whole lives we've
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| spend?
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| | have been looking forward to financial
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| - What does it take to qualify for and
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| | success by accumulating a nest egg of
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| pay for credit?
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| | money, rather than looking at the real
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| - When you are not working because you
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| | need which is to create income to live
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| have retired, or are unable or don't want
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| | the way we want.
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| to anymore, what do you need to live?
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| | The missing component in financial
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| The answer to all of these, of course is
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| | planning is the creation of income, or
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| INCOME. You need income to live today and
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| | cash flow, both today and in the future.
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| throughout your life. When you're not
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| | How will you create the income you need
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| working you still need a source of income
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| | now to live the way you want to, and how
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| to pay your living expenses.
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| | will you sustain an income when you are
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| Now let's look at the components of
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| | not 'working' at your job?
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| personal financial planning:
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| | The answer is to consider a wide variety
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| - Cash Management
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| | of cash-flow generating ideas. Consider
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| - Tax Planning
| |
| | it a brainstorming session, where the sky
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| - Risk Management and Insurance
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| | is the limit. It can be a business
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| - Credit Management
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| | vehicle, an investment vehicle, or even a
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| - Investment Planning
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| | personal passion that can make money at
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| - Estate Planning
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| | Christmas craft fairs. The goal can be
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| - Retirement Planning
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| | small or large - just get the juices
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| For most of my career as a financial
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| | flowing!
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