Every one has a dream that they want to achieve and rightfully so because it is only natural that we have that dream to strive for. Without those dreams people would only be walking the world without any purpose or direction.
What sets you apart from the other people in the world is that you are willing to act on your dreams. That is why you are reading this article. You want to be the best at what you do and sometimes this includes making money to support that dream.
In fact, the most common dream among people is to become rich and famous. This is not much of a surprise because it is normal to look for comfort and luxury. Sometimes this comfort and luxury only comes with wealth but how does one learn about the specific steps necessary to reach the wealth commensurate to the luxury we want.
Now, there are thousand of books from an equally numerous number of authors about the ways we can make millions on different investments. However, how do you find out which book is the best. If there was a way we can get the information we need, wouldn't we just jump on the chance?
Fortunately, there is a way you can get financial advice to help you on your way to becoming rich. Financial advisers are professionals that can give you non biased advice about what you can do with your hard earned money. Financial Companies invest heavily in their financial representatives. This would mean that there will be shortage of representative or knowledge.
The only drawback to having a plethora of financial advisers at your dispersal is that you do not know just how to pick one from the lot of them. There are a lot of choices to make. There are insurance professional that can help you with asset protection and estate planning. There are also investment gurus that can help you with wealth creation and tax minimisation.
So, how do we choose the right financial professional that will answer to your investment and asset protection needs? Well, to start, it would be nice if you knew exactly what you need. If you know what you need you can talk directly to the experts in their respective fields. Talk to insurance agents for asset protection. If you need wealth growth certified investment professionals can give you good advice.
However, the problem is that people do not know what they need and this one of the primary reasons a person goes to a financial adviser. It would be good to get opinions from several professionals regarding your finances. Get as much information as you possibly can.
It is also important to look at the credibility of the financial representative that you will be picking. Check for identifications that show that they are indeed a part of the company. Also, make sure that you do not pay cash in any transaction. Instead, your payments should only be done through a check or money order addressed to the company you are paying and not the person you are dealing with.
Talking to a financial representative opens you to the possibility of reaching your dreams but for it all to happen, you must be careful to only pick the right financial expert to help you. With the right people by your side, the sky is the limit and your dreams are within reach.
Tuesday, December 15, 2009
Monday, November 16, 2009
How to begin your Financial future
Financial planning today provides major benefits tomorrow, and for the remainder of your life.
Regardless of your current income level or personal situation, learn why you must be committed to the following personal finance strategies in order to secure your financial success.
Planning now for your financial future is, quite simply, a smart thing to do. The tools and process detailed here will pave the way for anyone who is serious about conquering their debt and taking control over their financial existence.
Financial planning is how you get from point A to point B, as well as points C, D and E. Depending on where you are financially today, you no doubt have multiple goals that you wish to accomplish. "Hoping" for your luck to finally change, or "waiting" for your ship to come in, is NOT a financial plan - it's simply a dream.
Most people get into a set routine with their finances. The longer you allow yourself to continue down the same financial road without a clear map in hand, the more you lessen your chances of realizing your financial goals.
Let's face it, most people are not known for their patience or their planning skills, and even less people are admired for their ability to save money. No one should be surprised to learn this given how the mass media is constantly teaching people in our society to "buy it now- pay later!"
To ensure financial success, people must break away from this destructive, and weak, mind-set.
Do not make the common mistake that financial planning is only for the wealthy, or that you must already have a good sized nest egg before meeting with a financial advisor. Nothing could be farther from the truth.
However, you don't need to pay out your hard earned money for a professional. The most effective financial planning occurs in the home at the dining room table or home office.
Common tools include the household checkbook, a pen, calculator and a piece of paper with a line down the middle. One column is titled, "Cash Coming In", and the other column reads "Cash Going Out".
The main goal to keep in mind is that you want to spend every dollar of your monthly income ON PAPER, before you actually spend it. This way you will plan your expenditures for the month, knowing you have set aside adequate money to cover all the fixed expenses. In addition, you will have thoughtfully allocated the remaining funds to the areas of your life that are most important to you.
Examples of important financial goals might include:
* Buying a new car
* Saving for a down payment on a house
* Future college saving
* Dream family vacation
* Purchase of investment property
* Planning for retirement years
Regardless of what your financial goals are, your chances of realizing those goals are highly dependant upon your decision to plan ahead and your willingness to take action - right here and right now.
There is a great tool available to anyone who is not comfortable with sitting down and creating a household budget on their own. This important tool is called a Personal Financial Statement.
If you've ever applied for a loan or credit card, you have filled out the majority of what is found on a personal financial statement. Starting immediately, you can begin using the same process that a lender uses to account for all monies coming in and going out.
Once you have completed filling out a personal financial statement, you will have all the information you need to take the financial planning process to the level - that is, creating a budget that works!
"Budgeting" gets a bum wrap. No one likes to hear the word "budget"; however, it is the process of budgeting (aka. financial planning) that will ultimately set you free and secure your financial future. Too often, people make the mistake of assuming "only broke people have to budget". The reality is that most rich folks are rich because they budget.
Regardless of your current income level or personal situation, learn why you must be committed to the following personal finance strategies in order to secure your financial success.
Planning now for your financial future is, quite simply, a smart thing to do. The tools and process detailed here will pave the way for anyone who is serious about conquering their debt and taking control over their financial existence.
Financial planning is how you get from point A to point B, as well as points C, D and E. Depending on where you are financially today, you no doubt have multiple goals that you wish to accomplish. "Hoping" for your luck to finally change, or "waiting" for your ship to come in, is NOT a financial plan - it's simply a dream.
Most people get into a set routine with their finances. The longer you allow yourself to continue down the same financial road without a clear map in hand, the more you lessen your chances of realizing your financial goals.
Let's face it, most people are not known for their patience or their planning skills, and even less people are admired for their ability to save money. No one should be surprised to learn this given how the mass media is constantly teaching people in our society to "buy it now- pay later!"
To ensure financial success, people must break away from this destructive, and weak, mind-set.
Do not make the common mistake that financial planning is only for the wealthy, or that you must already have a good sized nest egg before meeting with a financial advisor. Nothing could be farther from the truth.
However, you don't need to pay out your hard earned money for a professional. The most effective financial planning occurs in the home at the dining room table or home office.
Common tools include the household checkbook, a pen, calculator and a piece of paper with a line down the middle. One column is titled, "Cash Coming In", and the other column reads "Cash Going Out".
The main goal to keep in mind is that you want to spend every dollar of your monthly income ON PAPER, before you actually spend it. This way you will plan your expenditures for the month, knowing you have set aside adequate money to cover all the fixed expenses. In addition, you will have thoughtfully allocated the remaining funds to the areas of your life that are most important to you.
Examples of important financial goals might include:
* Buying a new car
* Saving for a down payment on a house
* Future college saving
* Dream family vacation
* Purchase of investment property
* Planning for retirement years
Regardless of what your financial goals are, your chances of realizing those goals are highly dependant upon your decision to plan ahead and your willingness to take action - right here and right now.
There is a great tool available to anyone who is not comfortable with sitting down and creating a household budget on their own. This important tool is called a Personal Financial Statement.
If you've ever applied for a loan or credit card, you have filled out the majority of what is found on a personal financial statement. Starting immediately, you can begin using the same process that a lender uses to account for all monies coming in and going out.
Once you have completed filling out a personal financial statement, you will have all the information you need to take the financial planning process to the level - that is, creating a budget that works!
"Budgeting" gets a bum wrap. No one likes to hear the word "budget"; however, it is the process of budgeting (aka. financial planning) that will ultimately set you free and secure your financial future. Too often, people make the mistake of assuming "only broke people have to budget". The reality is that most rich folks are rich because they budget.
Tuesday, November 3, 2009
How Far to Financial Freedom?
What you live off when you're not working ... financial freedom.
In our introductory meetings with potential new clients, we want to obtain a preliminary view of their "Net Investment Wealth". It quickly gives us an idea of how far along the road to financial freedom or independence they have come and how far they have to go.
Net investment wealth is your net worth less your lifestyle assets. It's the stuff available to live off when you are no longer earning income from your work.
How much do you need for financial freedom?
If the Wilsons are in their late 30's-early 40's, and looking to work for another 20 years, a net investment wealth of $95,000 may not be cause for concern. But it is definitely a focus for a meaningful conversation.
However, if they are in their mid to late 50's and hoping to retire within 10 years, there may be some major issues to confront. Because when the Wilsons retire, it is their net investment wealth and its hopeful growth that will be used to finance their desired lifestyle.
If they tell us that they want to spend around $125,000 p.a. in today's dollars in retirement, a (very) rough rule of thumb is to multiply this amount by 25 times to obtain an idea of how much net investment wealth is required to support their lifestyle. In this case, required net investment wealth is $3,125,000 (i.e. 25*$125,000). This compares with current net investment wealth of $95,000 - a shortfall of $3,030,000.
What has to happen to accumulate this shortfall?
If the Wilsons are now aged 55 and wish to retire at age 65, assuming investment returns of 4% p.a.(after-tax and inflation), they need to save an average of about $250,000 p.a. in today's dollars for the next 10 years. They better have a substantial income. However, if they are aged 40 and also wish to retire at age 65, the required saving reduces to about $69,000 p.a.
Such "back of the envelope" calculations will help you to quickly get a good idea what needs to happen for you to achieve your retirement or financial independence goals.
Net Investment Wealth: a "financial independence" indicator
Financial independence, that we equate with financial freedom, is achieved when you have sufficient net investment wealth to support your desired lifestyle, without the need to work. Work is a choice, rather than a necessity.
Your current net investment wealth provides a guide to how far along the financial independence road you have come. Together with other inputs, such as how much you would like to spend when you no longer wish to work, it can provide guidance to how far you have to go.
The simple analysis described above will highlight issues to address to increase the chances that you will achieve the financial future you want, such as:
* Do I need to save more? If so, how much?
* Do I need to earn more income? If so, how much?
* Are there structural changes I can make in my financial arrangements to increase my after-tax income and, hence, savings
* Do I need to work longer? If so, for how long?
* What sort of investment risk do I need to take to earn higher expected returns and, potentially, accumulate net investment wealth quicker? Am I prepared to take that risk?
* Is there scope to convert lifestyle assets to investment assets e.g. down size the family home?
* Should I be changing my retirement expectations?
A focus on your net worth or total assets, in isolation, can give a false sense of your options for financial freedom. A heavy bias to lifestyle assets may give the feel and appearance of wealth but it is wealth that is unlikely to be consistent with aspirations for early financial independence.
And if financial independence at a particular age is a goal that is important to you, then knowing your current net investment wealth and having a plan that addresses how you are going to grow it is critical.
In our introductory meetings with potential new clients, we want to obtain a preliminary view of their "Net Investment Wealth". It quickly gives us an idea of how far along the road to financial freedom or independence they have come and how far they have to go.
Net investment wealth is your net worth less your lifestyle assets. It's the stuff available to live off when you are no longer earning income from your work.
How much do you need for financial freedom?
If the Wilsons are in their late 30's-early 40's, and looking to work for another 20 years, a net investment wealth of $95,000 may not be cause for concern. But it is definitely a focus for a meaningful conversation.
However, if they are in their mid to late 50's and hoping to retire within 10 years, there may be some major issues to confront. Because when the Wilsons retire, it is their net investment wealth and its hopeful growth that will be used to finance their desired lifestyle.
If they tell us that they want to spend around $125,000 p.a. in today's dollars in retirement, a (very) rough rule of thumb is to multiply this amount by 25 times to obtain an idea of how much net investment wealth is required to support their lifestyle. In this case, required net investment wealth is $3,125,000 (i.e. 25*$125,000). This compares with current net investment wealth of $95,000 - a shortfall of $3,030,000.
What has to happen to accumulate this shortfall?
If the Wilsons are now aged 55 and wish to retire at age 65, assuming investment returns of 4% p.a.(after-tax and inflation), they need to save an average of about $250,000 p.a. in today's dollars for the next 10 years. They better have a substantial income. However, if they are aged 40 and also wish to retire at age 65, the required saving reduces to about $69,000 p.a.
Such "back of the envelope" calculations will help you to quickly get a good idea what needs to happen for you to achieve your retirement or financial independence goals.
Net Investment Wealth: a "financial independence" indicator
Financial independence, that we equate with financial freedom, is achieved when you have sufficient net investment wealth to support your desired lifestyle, without the need to work. Work is a choice, rather than a necessity.
Your current net investment wealth provides a guide to how far along the financial independence road you have come. Together with other inputs, such as how much you would like to spend when you no longer wish to work, it can provide guidance to how far you have to go.
The simple analysis described above will highlight issues to address to increase the chances that you will achieve the financial future you want, such as:
* Do I need to save more? If so, how much?
* Do I need to earn more income? If so, how much?
* Are there structural changes I can make in my financial arrangements to increase my after-tax income and, hence, savings
* Do I need to work longer? If so, for how long?
* What sort of investment risk do I need to take to earn higher expected returns and, potentially, accumulate net investment wealth quicker? Am I prepared to take that risk?
* Is there scope to convert lifestyle assets to investment assets e.g. down size the family home?
* Should I be changing my retirement expectations?
A focus on your net worth or total assets, in isolation, can give a false sense of your options for financial freedom. A heavy bias to lifestyle assets may give the feel and appearance of wealth but it is wealth that is unlikely to be consistent with aspirations for early financial independence.
And if financial independence at a particular age is a goal that is important to you, then knowing your current net investment wealth and having a plan that addresses how you are going to grow it is critical.
Friday, October 30, 2009
Story-The Power of Money
By Adam Khoo - Singapore's youngest millionaire at 26 yrs.
I travel around the region pretty frequently, having to visit and
conduct seminars at my offices in Malaysia, Indonesia, Thailand and
Suzhou (China).
I am in the airport almost every other week so I get to bump into many
people who have attended my seminars or have read my books.
Recently, someone came up to me on a plane to KL and looked rather
shocked. He asked, 'How come a millionaire like you is traveling
economy?' My reply was, 'That's why I am a millionaire. ' He still
looked pretty confused.
This again confirms that greatest lie ever told about wealth (which I
wrote about in my latest book 'Secrets of Self-Made Millionaires').
Many people have been brainwashed to think that millionaires have to
wear Gucci, Hugo Boss, Rolex, and sit on first class in air travel.
This is why so many people never become rich because the moment that
earn more money, they think that it is only natural that they spend
more, putting them back to square one.
The truth is that most self-made millionaires are frugal and only
spend on what is necessary and of value. That is why they are able to
accumulate and multiply their wealth so much faster.
Over the last 7 years, I have saved about 80% of my income while today
I save only about 60% (because I have my wife and 2 kids, mother in
law, 2 maids etc. to support). Still, it is way above most people
who save 10% of their income (if! they are lucky).
I refuse to buy a first class ticket or to buy a $300 shirt because I
think that it is a complete waste of money.
When I joined the YEO (Young Entrepreneur's Orgn)a few years back (YEO
is an exclusive club open to those who are under 40 and make over $1m
a year in their own business) I discovered that those who were
self-made thought like me. Many of them with net worth well over $5m,
travelled economy class and some even drove Toyota's and Nissans,not
Audis, Mercs, BMWs.
I noticed that it was only those who never had to work hard to build
their own wealth (there were also a few ministers' and tycoons' sons
in the club) who spent like there was no tomorrow. Somehow, when you
did not have to build everything from scratch, you do not really value
money. This is precisely the reason why a family's wealth (no matter
how much) rarely lasts past the third generation.
Thank God my rich dad foresaw this terrible possibility and refused to
give me a cent to start my business.
Then some people ask me, 'What is the point in making so much money if
you don't enjoy it?'
The thing is that I don't really find happiness in buying branded
clothes, jewellery or sitting first class. Even if buying something
makes me happy it is only for a while, it does not last.
Material happiness never lasts, it just give you a quick fix. After a
while you feel lousy again and have to buy the next thing which you
think will make you happy. I always think that if you need material
things to make you happy, then you live a pretty sad and unfulfilled
life..
Instead, what makes me happy is when I see my children laughing and
playing and learning ! so fast. What makes me happy is when I see my
companies and trainers reaching more and more people every year in so
many more countries.
What makes me really happy is when I read all the emails about how my
books and seminars have touched and inspired someone's life.
What makes me really happy is reading all your wonderful posts about
how this blog is inspiring you. This happiness makes me feel really
good for a long time, much much more than what a Rolex would do for
me.
I think the point I want to put across is that happiness must come
from doing your life's work (be it teaching, building homes,
designing, trading, winning tournaments etc.) and the money that comes
is only a by-product.
If you hate what you are doing and rely on the money you earn to make
you happy by buying stuff, then I think that you are living a life of
meaninglessness.
I travel around the region pretty frequently, having to visit and
conduct seminars at my offices in Malaysia, Indonesia, Thailand and
Suzhou (China).
I am in the airport almost every other week so I get to bump into many
people who have attended my seminars or have read my books.
Recently, someone came up to me on a plane to KL and looked rather
shocked. He asked, 'How come a millionaire like you is traveling
economy?' My reply was, 'That's why I am a millionaire. ' He still
looked pretty confused.
This again confirms that greatest lie ever told about wealth (which I
wrote about in my latest book 'Secrets of Self-Made Millionaires').
Many people have been brainwashed to think that millionaires have to
wear Gucci, Hugo Boss, Rolex, and sit on first class in air travel.
This is why so many people never become rich because the moment that
earn more money, they think that it is only natural that they spend
more, putting them back to square one.
The truth is that most self-made millionaires are frugal and only
spend on what is necessary and of value. That is why they are able to
accumulate and multiply their wealth so much faster.
Over the last 7 years, I have saved about 80% of my income while today
I save only about 60% (because I have my wife and 2 kids, mother in
law, 2 maids etc. to support). Still, it is way above most people
who save 10% of their income (if! they are lucky).
I refuse to buy a first class ticket or to buy a $300 shirt because I
think that it is a complete waste of money.
When I joined the YEO (Young Entrepreneur's Orgn)a few years back (YEO
is an exclusive club open to those who are under 40 and make over $1m
a year in their own business) I discovered that those who were
self-made thought like me. Many of them with net worth well over $5m,
travelled economy class and some even drove Toyota's and Nissans,not
Audis, Mercs, BMWs.
I noticed that it was only those who never had to work hard to build
their own wealth (there were also a few ministers' and tycoons' sons
in the club) who spent like there was no tomorrow. Somehow, when you
did not have to build everything from scratch, you do not really value
money. This is precisely the reason why a family's wealth (no matter
how much) rarely lasts past the third generation.
Thank God my rich dad foresaw this terrible possibility and refused to
give me a cent to start my business.
Then some people ask me, 'What is the point in making so much money if
you don't enjoy it?'
The thing is that I don't really find happiness in buying branded
clothes, jewellery or sitting first class. Even if buying something
makes me happy it is only for a while, it does not last.
Material happiness never lasts, it just give you a quick fix. After a
while you feel lousy again and have to buy the next thing which you
think will make you happy. I always think that if you need material
things to make you happy, then you live a pretty sad and unfulfilled
life..
Instead, what makes me happy is when I see my children laughing and
playing and learning ! so fast. What makes me happy is when I see my
companies and trainers reaching more and more people every year in so
many more countries.
What makes me really happy is when I read all the emails about how my
books and seminars have touched and inspired someone's life.
What makes me really happy is reading all your wonderful posts about
how this blog is inspiring you. This happiness makes me feel really
good for a long time, much much more than what a Rolex would do for
me.
I think the point I want to put across is that happiness must come
from doing your life's work (be it teaching, building homes,
designing, trading, winning tournaments etc.) and the money that comes
is only a by-product.
If you hate what you are doing and rely on the money you earn to make
you happy by buying stuff, then I think that you are living a life of
meaninglessness.
Tuesday, October 27, 2009
Financial management tips
You may ask why it is important to have sound financial management. The benefits of managing your cash correctly is to make sure that you control your spending and also be able to save enough in order achieve financial independence in the future.
Having financial goals help you to be focused and disciplined. Set long term financial goals and put them down in writing. By setting goals you prevent yourself from squandering your income and trusting in luck. As you set these targets, make sure they are measurable and achievable. Have a specific aim that will enable you calculate what you intent to achieve, how much you will be required to save or invest monthly and where you are planning to invest what you will have saved.
Review your progress periodically so as to note where you need to make adjustments and hence chart your financial growth. This way you will be in a position to know whether you are lagging behind or moving ahead.
Once you have the long term targets in place, set short term goals that will help you move closer to financial freedom. As you do your monthly budget, make sure it is connected to your long term goals. This is necessary if you are to remain focused and disciplined in managing your finances. Checking your budget will help you adjust accordingly depending on your monthly income.
Personal financial management calls for a lot of discipline if one desires to attain financial freedom. Consulting with experts would be advisable in ensuring you set achievable goals.
Having financial goals help you to be focused and disciplined. Set long term financial goals and put them down in writing. By setting goals you prevent yourself from squandering your income and trusting in luck. As you set these targets, make sure they are measurable and achievable. Have a specific aim that will enable you calculate what you intent to achieve, how much you will be required to save or invest monthly and where you are planning to invest what you will have saved.
Review your progress periodically so as to note where you need to make adjustments and hence chart your financial growth. This way you will be in a position to know whether you are lagging behind or moving ahead.
Once you have the long term targets in place, set short term goals that will help you move closer to financial freedom. As you do your monthly budget, make sure it is connected to your long term goals. This is necessary if you are to remain focused and disciplined in managing your finances. Checking your budget will help you adjust accordingly depending on your monthly income.
Personal financial management calls for a lot of discipline if one desires to attain financial freedom. Consulting with experts would be advisable in ensuring you set achievable goals.
Monday, October 26, 2009
Set Your Mind For Financial Success, Wealth Will Come
Most of us have been programmed to go to school, get a good job, and work hard. But does the working hard ever help achieve your dreams? Working hard is great but working smart is that much better. We have bombarded ourselves with intricate details about historical events, memorable people, etc. in our school days but have never been taught how to build wealth.
Wealth starts with you. You have to reprogram your mind for financial success in order to attain the riches you desire. So how do you accomplish this? First, you must identify what those desires and be as detailed as possible. Second, create affirmations and self-talk programming for each of those goals. Next, recite those programs everyday and/or record it in your own voice on a CD for immediate effects. And last, take action. Taking action is perhaps the most important step to achieving your goals;however, so many people miss this step.
Another way to set your mind for financial success is read and listen to others who have reached those levels of success that you wish to emulate. Most of those success stories have been where you are now and have the know-how's to get where you want to go. There are free resources on the internet to take advantage of 24 hours/day, 7 days/week. You will begin to feel a difference in your thinking once you implement these strategies in your daily activities. Remember, it's only as challenging as you make it in your mind. You have total control over your thoughts. Excuse those negative thoughts and replace them with empowering ones.
As you go through the different mental exercises to building a strong mind foundation, you can then begin your journey to financial success. Do you have a success vehicle to get you to a lifestyle filled with wealth and prosperity? If not, it's not a question to take lightly. This is the information age and it's time for you capitalize and get your share of the riches. Choosing a success vehicle should suit your personality, skills, talents, and abilities. Have you identified your strengths and weaknesses?
Whether you are strong salesperson, a shy person, a detailed person, there is a success vehicle for you. Here are some points to ponder when selecting your personal financial vehicle:
1. Does the compensation plan embrace immediate profit?
2. Do you have to purchase products or services that don't serve you to make income?
3. Are the products valued properly?
4. Can you identify with the mission of the company?
5. After enrolled, do you senior partners provide valuable sales and marketing training?
There are several things to consider when choosing the right success vehicle but these are the top questions you should ask when contemplating enrollment. There is a solution. Our compensation is based on weekly income structure, no purchase of products necessary to begin building your business and products are valued properly. The company mission is help families attain personal financial success. Once you enroll, your senior partners understand where you are and provide you with free ongoing training via face to face and/or online.
We encourage you to ask questions because we want you to succeed. Remember, start with yourself first because once you have created a successful internal program, the wealth will come.
To you personal financial success!
Wealth starts with you. You have to reprogram your mind for financial success in order to attain the riches you desire. So how do you accomplish this? First, you must identify what those desires and be as detailed as possible. Second, create affirmations and self-talk programming for each of those goals. Next, recite those programs everyday and/or record it in your own voice on a CD for immediate effects. And last, take action. Taking action is perhaps the most important step to achieving your goals;however, so many people miss this step.
Another way to set your mind for financial success is read and listen to others who have reached those levels of success that you wish to emulate. Most of those success stories have been where you are now and have the know-how's to get where you want to go. There are free resources on the internet to take advantage of 24 hours/day, 7 days/week. You will begin to feel a difference in your thinking once you implement these strategies in your daily activities. Remember, it's only as challenging as you make it in your mind. You have total control over your thoughts. Excuse those negative thoughts and replace them with empowering ones.
As you go through the different mental exercises to building a strong mind foundation, you can then begin your journey to financial success. Do you have a success vehicle to get you to a lifestyle filled with wealth and prosperity? If not, it's not a question to take lightly. This is the information age and it's time for you capitalize and get your share of the riches. Choosing a success vehicle should suit your personality, skills, talents, and abilities. Have you identified your strengths and weaknesses?
Whether you are strong salesperson, a shy person, a detailed person, there is a success vehicle for you. Here are some points to ponder when selecting your personal financial vehicle:
1. Does the compensation plan embrace immediate profit?
2. Do you have to purchase products or services that don't serve you to make income?
3. Are the products valued properly?
4. Can you identify with the mission of the company?
5. After enrolled, do you senior partners provide valuable sales and marketing training?
There are several things to consider when choosing the right success vehicle but these are the top questions you should ask when contemplating enrollment. There is a solution. Our compensation is based on weekly income structure, no purchase of products necessary to begin building your business and products are valued properly. The company mission is help families attain personal financial success. Once you enroll, your senior partners understand where you are and provide you with free ongoing training via face to face and/or online.
We encourage you to ask questions because we want you to succeed. Remember, start with yourself first because once you have created a successful internal program, the wealth will come.
To you personal financial success!
How to Manage your DEBT
People nowadays love to spend a lot without thinking on the consequences of overspending. Therefore, at the end of the day you will see a huge debt on your table for you to settle. Then, you will start to headache yourself to think of the suitable person to seek help or where to find money to pay for your own bills. So, if you want to have a free-debt life, here are some debt management tips to help you out.
Plan your Budget
Financial planning is essential to prevent you from overspending your money. Start to list down all your necessary expenses such as loans, house rental, food and transportation. Then, calculate the balance savings that you have. Use half of the balance to pay for your debt and the rest as your personal savings in the bank. This will definitely help you to reduce your debt progressively and at the same time keep some savings for future in case of emergencies.
Limit the Number of Credit Cards
When you are in a huge debt, start to reduce the number of credit cards you have. Start to pay your credit card companies; choose the one with the least amount of debt and once you have settled your bills, cancel the credit card. This is because you tend to spend more if you have lots of credit cards on hand and in a long run, you will lose control on your expenditures.
Debt Management Companies
There are actually lots of debt management companies which are able to help you in managing your huge debt. The consultant will provide several payment options for you to select the best one according to your debt amount and your capability in paying the monthly installment. Some companies are able to negotiate with the creditors to help you save on your interest as well.
These are some of the debt management tips which are able to help you out with your debt. Follow the abovementioned tips and plan your money wisely for a debt-free life.
Plan your Budget
Financial planning is essential to prevent you from overspending your money. Start to list down all your necessary expenses such as loans, house rental, food and transportation. Then, calculate the balance savings that you have. Use half of the balance to pay for your debt and the rest as your personal savings in the bank. This will definitely help you to reduce your debt progressively and at the same time keep some savings for future in case of emergencies.
Limit the Number of Credit Cards
When you are in a huge debt, start to reduce the number of credit cards you have. Start to pay your credit card companies; choose the one with the least amount of debt and once you have settled your bills, cancel the credit card. This is because you tend to spend more if you have lots of credit cards on hand and in a long run, you will lose control on your expenditures.
Debt Management Companies
There are actually lots of debt management companies which are able to help you in managing your huge debt. The consultant will provide several payment options for you to select the best one according to your debt amount and your capability in paying the monthly installment. Some companies are able to negotiate with the creditors to help you save on your interest as well.
These are some of the debt management tips which are able to help you out with your debt. Follow the abovementioned tips and plan your money wisely for a debt-free life.
Thursday, October 22, 2009
Finding a Good Book on Financial Planning - How To
When looking for a good book on financial management you should first figure out the experience level of the particular book you are thinking about getting. Many authors target people with a specific level of financial intelligence. For example, there is a huge difference between a book targeted to college age kids and a book targeted to the sophisticated and experienced investor.
Chances are you will fall somewhere in-between this. The best way to find financial planning books that meet your specific experience level is to read reviews on popular online websites. Amazon is probably the most well known place to find book reviews, but there are many others. The reason you should read book reviews, as opposed to just walking in a store and buying a book, is that it gives you extended factual knowledge as well as reader opinion that you wouldn't normally have access to.
When you read a book review you'll be able to make a reasonable guess as to whether it will interest you or not. When it comes to financial planning books you will be able to get a better understanding as to whether the book was written with your experience level in mind.
By going through some of the top reader reviews you should look for certain clues. If the reviewer uses a lot of financial jargon you don't understand it's probably not the best choice for you at the present time. On the other hand, if it sounds like the reviewer is experienced with financial planning and rated the book low because it only covered the basics, you'll know that the book was written more with a beginner in mind.
When your browsing the financial books on Amazon you'll see the top 3 reviews shown on the main page. Pay the most attention to these reviews because other users who have read the book have voted these particular reviews to the top. This means you can trust the reviewers opinion more than reviews that do not show on the main page.
When looking for good books on financial planning you need to be careful. There are a lot of books that are out-dated and that provide crappy advice. Make sure you don't get ripped off, read the reviews first!
Chances are you will fall somewhere in-between this. The best way to find financial planning books that meet your specific experience level is to read reviews on popular online websites. Amazon is probably the most well known place to find book reviews, but there are many others. The reason you should read book reviews, as opposed to just walking in a store and buying a book, is that it gives you extended factual knowledge as well as reader opinion that you wouldn't normally have access to.
When you read a book review you'll be able to make a reasonable guess as to whether it will interest you or not. When it comes to financial planning books you will be able to get a better understanding as to whether the book was written with your experience level in mind.
By going through some of the top reader reviews you should look for certain clues. If the reviewer uses a lot of financial jargon you don't understand it's probably not the best choice for you at the present time. On the other hand, if it sounds like the reviewer is experienced with financial planning and rated the book low because it only covered the basics, you'll know that the book was written more with a beginner in mind.
When your browsing the financial books on Amazon you'll see the top 3 reviews shown on the main page. Pay the most attention to these reviews because other users who have read the book have voted these particular reviews to the top. This means you can trust the reviewers opinion more than reviews that do not show on the main page.
When looking for good books on financial planning you need to be careful. There are a lot of books that are out-dated and that provide crappy advice. Make sure you don't get ripped off, read the reviews first!
A Life's Financial Plan
In the process of planing our financial future we should remember that investing is only one component of a larger personal financial plan. All of us need to keep our perspective and recognize that our long-term personal financial well-being depends on a number of important factors in addition to investments and investing.
For this reason, all of us should develop a sound, well-rounded financial plan. A good comprehensive financial plan is an important document in our lives. If done properly in the beginning and modified as needed over time it serves as a guide when making the major financial decisions of our lives. At its most basic, our financial plan becomes an easy-to-understand blueprint for our financial future. A good financial plan will generally detail three major categories: investments, estate planning, and insurance.
Investments
Investment planning may involve any or all of the following:
* Employer-provided 401(k)s
* 403(b)s, or pensions
* IRAs (tradtional or Roth)
* Self-employed retirement plans such as SEPs and Keoghs
* College savings
* Personal residences and other real estate investments
* Businesses
* Social Security
* Collectibles like, vehicles, art and coins
Estate Planning
Estate planning will include at least these basics:
* Wills or trusts
* Medical directives, including durable power of attorney for health care ( an individual who makes medical decisions for you if you can't) and a "living will" (a document that specifies your medical treatments if you can no longer make those decisions)
* Financial durable power of attorney (an individual to make your financial decisions for you if you become incapacitated)
Insurance
A well-planned insurance strategy will assure us of adequate protection now and into the future, and will give the coverage we needed without over-insuring or under-insuring. It may include:
* Health insurance
* Auto insurance
* Disability insurance
* Property insurance
* Life insurance
* General liability coverage (an umbrella policy).
A good fee-only financial planner should be consulted early in an adult's financial life to draw up a preliminary plan that can be modified as required in the future. A planner need not be consulted often, maybe only once or twice in a decade, but they should always be consulted when there is a major life change. Such events include marriage, children, death of heirs or beneficiaries, disability, and significant changes in our financial resources (for richer or for poorer).
For this reason, all of us should develop a sound, well-rounded financial plan. A good comprehensive financial plan is an important document in our lives. If done properly in the beginning and modified as needed over time it serves as a guide when making the major financial decisions of our lives. At its most basic, our financial plan becomes an easy-to-understand blueprint for our financial future. A good financial plan will generally detail three major categories: investments, estate planning, and insurance.
Investments
Investment planning may involve any or all of the following:
* Employer-provided 401(k)s
* 403(b)s, or pensions
* IRAs (tradtional or Roth)
* Self-employed retirement plans such as SEPs and Keoghs
* College savings
* Personal residences and other real estate investments
* Businesses
* Social Security
* Collectibles like, vehicles, art and coins
Estate Planning
Estate planning will include at least these basics:
* Wills or trusts
* Medical directives, including durable power of attorney for health care ( an individual who makes medical decisions for you if you can't) and a "living will" (a document that specifies your medical treatments if you can no longer make those decisions)
* Financial durable power of attorney (an individual to make your financial decisions for you if you become incapacitated)
Insurance
A well-planned insurance strategy will assure us of adequate protection now and into the future, and will give the coverage we needed without over-insuring or under-insuring. It may include:
* Health insurance
* Auto insurance
* Disability insurance
* Property insurance
* Life insurance
* General liability coverage (an umbrella policy).
A good fee-only financial planner should be consulted early in an adult's financial life to draw up a preliminary plan that can be modified as required in the future. A planner need not be consulted often, maybe only once or twice in a decade, but they should always be consulted when there is a major life change. Such events include marriage, children, death of heirs or beneficiaries, disability, and significant changes in our financial resources (for richer or for poorer).
Wednesday, October 21, 2009
Maintaining Your Financial Lifestyle in Retirement
Everywhere you go for information about retirement, you will find a plethora of information about finances and what you should do with your money. And, quite frankly, this is the area most people are more concerned with than any other. The question foremost in their minds is "have I done enough planning to support myself and my family in our current lifestyle throughout our retirement years?"
Over the last couple of decades, retirement funding has moved from fully funded pensions to self-managed savings through 401(k) plans, IRAs, Roth IRAs, and an assortment of other funding vehicles. For many years, Social Security and company pensions were a retiree's primary funding source. Since the advent of the 401(k), more 70 million individuals now own a 401(k) plan, with holdings of over $2.8 trillion. The amount of money currently invested in all retirement vehicles is astounding, $10 trillion in 2004.
Working in Retirement
Many retirees are choosing to return to work, with nearly 50% of all retirees having some earned income to supplement their other income producing assets. People are choosing to career shift, create a bridge career, or designing a career specifically to fit into a retirement lifestyle. Financial need certainly is playing a large part in these decisions, with recent surveys showing retiree's responses to reasons for returning to work shifting from "keeping active" to "financial need". The numbers of retirees who depend upon paid work to "make ends meet" is growing rapidly. According to a new Longevity Alliance and Harris Interactive poll released in August, 2009, the primary reasons retirees gave for possibly returning to work were changes in personal finances (42 percent), and increase in healthcare expenses (29 percent), and an acknowledgement that their lifespan could be longer than they initially prepared for (22 percent).
Often retirees are exploring their options in combining their strengths, skills, and passions, along with their financial needs, into post-retirement work solutions designed to fulfill a life purpose they have come to feel compelled to carry out. Stories about men and women in their 50s and 60s going back to college to build skills are becoming relatively common. Retirees starting their own businesses to fulfill their passions are heard about almost daily.
It would be unfortunate for individuals approaching or entering into retirement to believe that sufficient preparation for retirement is only a matter of creating a strong financial plan. As you continue working through this workbook, you will discover that it is so much more!
As the old saying goes, "money cannot buy happiness". However, it does function as one of the central aspects in overall retirement satisfaction. A sufficient supply of money can help retirees buffer many of life's adversities. There is a strong correlation between feeling financially comfortable and a retiree's level of self-esteem and life satisfaction. Those who feel they have enough money are more socially active, contribute to their communities through volunteer activities, and see themselves as happier than those who feel finances are lacking.
Facing the Unknown
No matter how hard you save, and plan for your future, there are a number of variables you cannot control or predict. Many individuals utilize retirement income calculators available through their accounting systems, financial planners, 401K and employee pension websites. Economic factors you cannot predict:
1. The rate of return on your investments. Your financial planner will be quick to point this out to you, and historical trends cannot be used with any precision.
2. The inflation rate for the next thirty years.
An excellent financial planner will be quick to point this out to their clients as they assist their clients in planning for the possibilities in their retirement years.
In addition, there are factors unique to each individual which are likely to be even more unpredictable when trying to project funding requirements for your retirement.
1. The first factor is predicting length of life. Family history plays into this, but with medical science progressing at astronomical rates, it is almost impossible to answer. Most financial planners are estimating based upon an age of 90 to 100.
2. What kind of lifestyle do you want to lead during retirement? Do you have a passion for travel or theater? Do you plan to move, purchase and furnish a new home? What will you do for entertainment? These variables can be costly, and can have a huge impact on a conservative budget.
3. How do you plan for the possibilities? For example, as we have seen earlier, the rising costs of health care. Due to current economic conditions, your adult children may be seeing financial difficulties that could place pressure on your retirement plans.
Financial Preparedness
The longer you expect to live means stronger planning to make sure you don't outlive your savings. Less than 16% of us can count on a traditional pension that guarantees lifetime payments, so we often feel enormous pressure in this area of our retirement.
Several years ago, a USA Today feature article on retirement featured research done by a California financial planner who studied different retirement scenarios based on investors who retired over a 40 year period. They found that if retirees want their portfolios to last 30 years or longer, their annual withdrawal rate needed to be as low as 4%. Since then, other studies have shown that a 7% withdrawal rate has a 90% chance for success. At the 7% rate, you must have $500,000 in income to sustain the annual withdrawal of $35,000.
According to the article, early retirees should consider the following
1. How much money will you need?
2. Can you pay for your living expenses without taking early withdrawals from retirement accounts?
3. Once you're retired, how much money can you withdraw each year?
4. How will you pay for health insurance?
5. Do you have ways to make money in retirement?
Asset Management
None of us can afford to ignore an increasing life expectancy, and the likelihood of a longer time spent in retirement. We need to be excellent managers of our finances, seeking help where needed. Working with a qualified and trusted financial planner is a solid move as you begin to plan your retirement. On the other hand, fiscal soundness is only one area of a multi-faceted retirement. People need to be good managers of the rest of their assets, which include their time, physical vitality, relationships, spirituality, and creativity. They need to find balance between the financial aspects of their retirement and the need to actively participate in other equally important facets of a life well lived.
Over the last couple of decades, retirement funding has moved from fully funded pensions to self-managed savings through 401(k) plans, IRAs, Roth IRAs, and an assortment of other funding vehicles. For many years, Social Security and company pensions were a retiree's primary funding source. Since the advent of the 401(k), more 70 million individuals now own a 401(k) plan, with holdings of over $2.8 trillion. The amount of money currently invested in all retirement vehicles is astounding, $10 trillion in 2004.
Working in Retirement
Many retirees are choosing to return to work, with nearly 50% of all retirees having some earned income to supplement their other income producing assets. People are choosing to career shift, create a bridge career, or designing a career specifically to fit into a retirement lifestyle. Financial need certainly is playing a large part in these decisions, with recent surveys showing retiree's responses to reasons for returning to work shifting from "keeping active" to "financial need". The numbers of retirees who depend upon paid work to "make ends meet" is growing rapidly. According to a new Longevity Alliance and Harris Interactive poll released in August, 2009, the primary reasons retirees gave for possibly returning to work were changes in personal finances (42 percent), and increase in healthcare expenses (29 percent), and an acknowledgement that their lifespan could be longer than they initially prepared for (22 percent).
Often retirees are exploring their options in combining their strengths, skills, and passions, along with their financial needs, into post-retirement work solutions designed to fulfill a life purpose they have come to feel compelled to carry out. Stories about men and women in their 50s and 60s going back to college to build skills are becoming relatively common. Retirees starting their own businesses to fulfill their passions are heard about almost daily.
It would be unfortunate for individuals approaching or entering into retirement to believe that sufficient preparation for retirement is only a matter of creating a strong financial plan. As you continue working through this workbook, you will discover that it is so much more!
As the old saying goes, "money cannot buy happiness". However, it does function as one of the central aspects in overall retirement satisfaction. A sufficient supply of money can help retirees buffer many of life's adversities. There is a strong correlation between feeling financially comfortable and a retiree's level of self-esteem and life satisfaction. Those who feel they have enough money are more socially active, contribute to their communities through volunteer activities, and see themselves as happier than those who feel finances are lacking.
Facing the Unknown
No matter how hard you save, and plan for your future, there are a number of variables you cannot control or predict. Many individuals utilize retirement income calculators available through their accounting systems, financial planners, 401K and employee pension websites. Economic factors you cannot predict:
1. The rate of return on your investments. Your financial planner will be quick to point this out to you, and historical trends cannot be used with any precision.
2. The inflation rate for the next thirty years.
An excellent financial planner will be quick to point this out to their clients as they assist their clients in planning for the possibilities in their retirement years.
In addition, there are factors unique to each individual which are likely to be even more unpredictable when trying to project funding requirements for your retirement.
1. The first factor is predicting length of life. Family history plays into this, but with medical science progressing at astronomical rates, it is almost impossible to answer. Most financial planners are estimating based upon an age of 90 to 100.
2. What kind of lifestyle do you want to lead during retirement? Do you have a passion for travel or theater? Do you plan to move, purchase and furnish a new home? What will you do for entertainment? These variables can be costly, and can have a huge impact on a conservative budget.
3. How do you plan for the possibilities? For example, as we have seen earlier, the rising costs of health care. Due to current economic conditions, your adult children may be seeing financial difficulties that could place pressure on your retirement plans.
Financial Preparedness
The longer you expect to live means stronger planning to make sure you don't outlive your savings. Less than 16% of us can count on a traditional pension that guarantees lifetime payments, so we often feel enormous pressure in this area of our retirement.
Several years ago, a USA Today feature article on retirement featured research done by a California financial planner who studied different retirement scenarios based on investors who retired over a 40 year period. They found that if retirees want their portfolios to last 30 years or longer, their annual withdrawal rate needed to be as low as 4%. Since then, other studies have shown that a 7% withdrawal rate has a 90% chance for success. At the 7% rate, you must have $500,000 in income to sustain the annual withdrawal of $35,000.
According to the article, early retirees should consider the following
1. How much money will you need?
2. Can you pay for your living expenses without taking early withdrawals from retirement accounts?
3. Once you're retired, how much money can you withdraw each year?
4. How will you pay for health insurance?
5. Do you have ways to make money in retirement?
Asset Management
None of us can afford to ignore an increasing life expectancy, and the likelihood of a longer time spent in retirement. We need to be excellent managers of our finances, seeking help where needed. Working with a qualified and trusted financial planner is a solid move as you begin to plan your retirement. On the other hand, fiscal soundness is only one area of a multi-faceted retirement. People need to be good managers of the rest of their assets, which include their time, physical vitality, relationships, spirituality, and creativity. They need to find balance between the financial aspects of their retirement and the need to actively participate in other equally important facets of a life well lived.
Keep Your Financial Planning on Track
We all need to know exactly what the most common mistakes are in our financial planning, and then we should take positive steps to avoid them. The most common mistakes are:
- Not setting measurable financial goals for ourselves. We all want to be rich, and we keep saying that, but that is just too vague. Be more specific in what you want exactly.
- Many of us do not really see, or understand the bigger picture of our financial planning.
- We seem to easily confuse financial planning with investment or retirement or even tax planning, but these are all elements of our financial planning.
- Some of us make the huge mistake of thinking that financial planning is only for the wealthy or for when you get older.
- Most of us make the mistake of expecting unrealistic returns on our investments.
- We neglect to re-evaluate our financial plan periodically.
- We think that by making use of a financial advisor means that we are losing control of our financial affair.
The above is all mistakes that we make, some of us make these entire mistake, and others just a few, but we make mistakes regarding our financial planning. We can avoid these mistakes, just use the following tips:
- Know and accept your limitations, then bring in the experts. Ensure that you choose someone who has the necessary knowledge, skills and experience to assist you best. Such a person will look at your goals and your needs, then take you through a comprehensive needs analysis, and make recommendations based on this and also assist you in building a long-term financial plan.
- Set concrete long and short term financial goals for yourself.
- Look at and understand fully what the impact is of your financial decision, as these decisions affect many areas of your life.
- Recommendations are based on your inputs, as one size does not fit all, your advice should be personalized.
- As your financial goals may change over time, due to changes in your circumstances. Therefore review your financial situations regularly. Also review your goals and what you want at regular intervals.
- Start your planning early, those who save and invest small amount of money early are often better off and do better than those who wait for later.
- Keep your expectations realistic. And keep in find that factors such as inflation, investment markets and changes in interest rates will affect your financial planning results.
And then finally, use your financial plan, there is absolutely no use or point in building a financial plan, unless you implement and use it.
- Not setting measurable financial goals for ourselves. We all want to be rich, and we keep saying that, but that is just too vague. Be more specific in what you want exactly.
- Many of us do not really see, or understand the bigger picture of our financial planning.
- We seem to easily confuse financial planning with investment or retirement or even tax planning, but these are all elements of our financial planning.
- Some of us make the huge mistake of thinking that financial planning is only for the wealthy or for when you get older.
- Most of us make the mistake of expecting unrealistic returns on our investments.
- We neglect to re-evaluate our financial plan periodically.
- We think that by making use of a financial advisor means that we are losing control of our financial affair.
The above is all mistakes that we make, some of us make these entire mistake, and others just a few, but we make mistakes regarding our financial planning. We can avoid these mistakes, just use the following tips:
- Know and accept your limitations, then bring in the experts. Ensure that you choose someone who has the necessary knowledge, skills and experience to assist you best. Such a person will look at your goals and your needs, then take you through a comprehensive needs analysis, and make recommendations based on this and also assist you in building a long-term financial plan.
- Set concrete long and short term financial goals for yourself.
- Look at and understand fully what the impact is of your financial decision, as these decisions affect many areas of your life.
- Recommendations are based on your inputs, as one size does not fit all, your advice should be personalized.
- As your financial goals may change over time, due to changes in your circumstances. Therefore review your financial situations regularly. Also review your goals and what you want at regular intervals.
- Start your planning early, those who save and invest small amount of money early are often better off and do better than those who wait for later.
- Keep your expectations realistic. And keep in find that factors such as inflation, investment markets and changes in interest rates will affect your financial planning results.
And then finally, use your financial plan, there is absolutely no use or point in building a financial plan, unless you implement and use it.
Tuesday, October 20, 2009
Financial Management and the Benefits of Budgeting Your Income
I have had the pleasure of listening to successful people who have positively impacted the world. It still perplexes me how they achieve such feat and become millionaires, most of them from very humble beginnings. But recently, I got curious and decided to investigate by reading some of these peoples' biographies and autobiographies. One thing that these individuals had in common was that they always had a vision.
The next time you look and admire at the financial achievement of an individual, realize that he/she went to great lengths to map his/her life. Therefore, if you want to attain financial independence you must start planning your finances now since tomorrow may be too late.
Do a monthly breakdown of what you need by putting it down on paper before you set out to go and purchase anything. This will help prevent impulse buying. In addition, it assists you monitor your actual expenditure against your income or earning. Constantly, keep finding ways of amending and cutting down on your expenditure.
If you happen to be in employment and are thinking of going into business, avoid financial interruptions. This can be achieved by making sure you have in place a good financial transition plan. Reason being that sometimes businesses take time before they can start recording profits. It would be advisable to have a back up plan or waiting until your business picks up before you quitting your job.
The important aspect of budgeting is setting realistic goals that are achievable. Over expectation is the biggest killer of financial planning. This is because whenever you fail to achieve a set goal it discourages you to carry on with planning your finances. However, reaching your set targets motivates you to adhere to your budget.
The next time you look and admire at the financial achievement of an individual, realize that he/she went to great lengths to map his/her life. Therefore, if you want to attain financial independence you must start planning your finances now since tomorrow may be too late.
Do a monthly breakdown of what you need by putting it down on paper before you set out to go and purchase anything. This will help prevent impulse buying. In addition, it assists you monitor your actual expenditure against your income or earning. Constantly, keep finding ways of amending and cutting down on your expenditure.
If you happen to be in employment and are thinking of going into business, avoid financial interruptions. This can be achieved by making sure you have in place a good financial transition plan. Reason being that sometimes businesses take time before they can start recording profits. It would be advisable to have a back up plan or waiting until your business picks up before you quitting your job.
The important aspect of budgeting is setting realistic goals that are achievable. Over expectation is the biggest killer of financial planning. This is because whenever you fail to achieve a set goal it discourages you to carry on with planning your finances. However, reaching your set targets motivates you to adhere to your budget.
Monday, October 19, 2009
Here's 4 Tips to Starting Your Financial Planning Practice
A financial advisor career has multiple benefits, including good pay, great client relationships and learning galore. It's an opportunity to engage in a highly respected field, and to provide a valuable service to clients who rely on your expertise.
I enjoyed being in the financial planning industry for several years and was privileged to serve over 200 clients in my financial planning practice.
Here are 4 tips if you're planning to become a financial advisor that will get you started on the right foot:
1. Hire help immediately. This is one of the best decisions I ever made in my financial advisor carer. I immediately hired a college student to do paperwork and make phone calls. She was a lifesaver. With all the new responsibilities of being a financial advisor, this investment was well worth it for me.
2. Have a paper management system, and stick with it! Determine early on a paper management system that will work for you to keep all your important papers and documents in order. The financial services industry is heavy on paper, and it's easy to get bogged down in a white mass of papers on your desk (and all over your office) if you're not equipped with a way to handle all the paper that comes at you on a daily basis.
3. Set office hours and stick with them! Right up front, set your office hours. The beginning years of building a financial planning practice often mean long hours. There's no doubt you'll work very hard in the beginning, but you've got to give yourself time to rejuvenate and time for the other things in life that are important to you.
4. Determine early on who your ideal client is, then go to all the places they hang out. Become a speaker to those organizations. Frequent the places where your ideal clients can be found. This puts you in direct contact with potential clients without you spending a boatload of money on marketing.
A financial advisor career can be a rewarding one. Enjoy your new venture.
I enjoyed being in the financial planning industry for several years and was privileged to serve over 200 clients in my financial planning practice.
Here are 4 tips if you're planning to become a financial advisor that will get you started on the right foot:
1. Hire help immediately. This is one of the best decisions I ever made in my financial advisor carer. I immediately hired a college student to do paperwork and make phone calls. She was a lifesaver. With all the new responsibilities of being a financial advisor, this investment was well worth it for me.
2. Have a paper management system, and stick with it! Determine early on a paper management system that will work for you to keep all your important papers and documents in order. The financial services industry is heavy on paper, and it's easy to get bogged down in a white mass of papers on your desk (and all over your office) if you're not equipped with a way to handle all the paper that comes at you on a daily basis.
3. Set office hours and stick with them! Right up front, set your office hours. The beginning years of building a financial planning practice often mean long hours. There's no doubt you'll work very hard in the beginning, but you've got to give yourself time to rejuvenate and time for the other things in life that are important to you.
4. Determine early on who your ideal client is, then go to all the places they hang out. Become a speaker to those organizations. Frequent the places where your ideal clients can be found. This puts you in direct contact with potential clients without you spending a boatload of money on marketing.
A financial advisor career can be a rewarding one. Enjoy your new venture.
Steps to Financial Fitness
Financial fitness is the real answer to a stress-free life. Finances should be well managed to avoid crisis in any point of life. To maintain a healthy personal finance the most important requirement is to save money to cushion you in troubled times. Saving money prevents from incurring debts. And invest money through proper channels to get the maximum possible returns without putting everything at stake.
1. Budgeting your domestic expenses
It is a good practice to budget your domestic expenses. Keep a tab of your monthly bills and also your fixed expenses. This will give you a fair idea of how much money you need to get your household running smoothly.
2. Plan your monthly savings
Each month set aside some portion of your income to be able to make the yearly payments for insurances, bonds, mutual funds and other savings schemes.
3. Plan your big expenses
The big expenses like investing on a new house or a new car or even renovation works or furniture, buying latest gadgets/electronic items, planning for trips or vacations, marriages and festivals call for money. So keeping in view of the events, funds should be arranged or the means decided beforehand and spending should be done accordingly.
4. Keeping track of your expenses
It is important that you keep a track of your daily expenses. Maintain a listing of accounts with all the different expenses under separate heads. That way you will come to know how much money you need for a comfortable living and how much is spent on luxury items and entertainment. You would know how much you are throwing away on parties, shopping, etc. to be able to control your expenses more effectively.
5. Planned use of credit cards
It should be remembered that credit cards are meant for deferred payments. And credit cards should never be a means of uncontrolled expenses just because you do not have to pay cash immediately. This dangerous practice amounts to huge credit card bills and takes the shape of financial liability in the future. Use your credit card judiciously.
6. Avoid incurring debts especially through credit cards
Debts through credit card are quite common. Do not shop with your credit card if you think you would not be having enough cash in your account to pay off your credited amount within the billing period.
7. Choose your credit card wisely
Choose a credit card that gives you cash back and has no annual charges. Some examples of cash back cards are (1) Chase Freedom Visa Signature Card (2) Blue Cash from American Express
8. Always avoid paying late fees
Usually, when we buy against credit cards we tend to forget that we might not be paying immediately but will have to pay in near future. Unplanned use of credit cards results in hefty outstanding bill amount. Make it a practice to pay off dues in time so as to avoid paying late fees.
9. Invest wisely
Contribute each of your hard earned pennies in traditional individual retirement (IRA) account or 401k where you would get maximum returns at minimum risks.
10. Open a checking account that pays interest
Most of the checking accounts do not pay interest. So try and find out a checking account that does so, for example, HSBC Online Payment Account.
11. Pool resources to create an emergency fund
Save a small amount when your cash flow is good to create an emergency fund. That ways you would not have to borrow money at high interest rates to cope up with any kind of emergency situation.
12. Take insurance cover
Typically, in case of health insurance coverage, premium amount goes on increasing with age. So make it a point to get yourself and your family insured when you are young and at the beginning of your career. Do also make a point to insure your household goods, property, house, etc. against damages caused by theft and fire.
1. Budgeting your domestic expenses
It is a good practice to budget your domestic expenses. Keep a tab of your monthly bills and also your fixed expenses. This will give you a fair idea of how much money you need to get your household running smoothly.
2. Plan your monthly savings
Each month set aside some portion of your income to be able to make the yearly payments for insurances, bonds, mutual funds and other savings schemes.
3. Plan your big expenses
The big expenses like investing on a new house or a new car or even renovation works or furniture, buying latest gadgets/electronic items, planning for trips or vacations, marriages and festivals call for money. So keeping in view of the events, funds should be arranged or the means decided beforehand and spending should be done accordingly.
4. Keeping track of your expenses
It is important that you keep a track of your daily expenses. Maintain a listing of accounts with all the different expenses under separate heads. That way you will come to know how much money you need for a comfortable living and how much is spent on luxury items and entertainment. You would know how much you are throwing away on parties, shopping, etc. to be able to control your expenses more effectively.
5. Planned use of credit cards
It should be remembered that credit cards are meant for deferred payments. And credit cards should never be a means of uncontrolled expenses just because you do not have to pay cash immediately. This dangerous practice amounts to huge credit card bills and takes the shape of financial liability in the future. Use your credit card judiciously.
6. Avoid incurring debts especially through credit cards
Debts through credit card are quite common. Do not shop with your credit card if you think you would not be having enough cash in your account to pay off your credited amount within the billing period.
7. Choose your credit card wisely
Choose a credit card that gives you cash back and has no annual charges. Some examples of cash back cards are (1) Chase Freedom Visa Signature Card (2) Blue Cash from American Express
8. Always avoid paying late fees
Usually, when we buy against credit cards we tend to forget that we might not be paying immediately but will have to pay in near future. Unplanned use of credit cards results in hefty outstanding bill amount. Make it a practice to pay off dues in time so as to avoid paying late fees.
9. Invest wisely
Contribute each of your hard earned pennies in traditional individual retirement (IRA) account or 401k where you would get maximum returns at minimum risks.
10. Open a checking account that pays interest
Most of the checking accounts do not pay interest. So try and find out a checking account that does so, for example, HSBC Online Payment Account.
11. Pool resources to create an emergency fund
Save a small amount when your cash flow is good to create an emergency fund. That ways you would not have to borrow money at high interest rates to cope up with any kind of emergency situation.
12. Take insurance cover
Typically, in case of health insurance coverage, premium amount goes on increasing with age. So make it a point to get yourself and your family insured when you are young and at the beginning of your career. Do also make a point to insure your household goods, property, house, etc. against damages caused by theft and fire.
Planning Retirement? Improve Your Financial Success
Planning your retirement? Here is a short task list to complete before you skip out the door that will help with your finances. These should be done in partnership with a financial planner to eliminate any mis-steps that could have far reaching consequences.
Create An Asset Allocation Strategy You are Comfortable With. Spreading your investments in your retirement accounts in a variety of holdings will help you deal with the ups and downs of the stock and bond market, and keep your savings somewhat stable. Traditional investment strategies suggest that the younger you are, the more risk you can absorb. Those who are preparing for retirement should consider shifting to a more conservative mix. Many financial planners are suggesting target-date mutual funds, based upon age group, which gradually get more conservative as the investor gets closer to retirement. It also is important to remember that your money may have to last 25 - 30 years, so it is important that the allocation strategy is not too conservative as you move into retirement. You will need to keep up with inflation.
Only you know what you are comfortable with, so talk to your financial planner. Trust yourself to make the decisions right for you.
Plan Your Income Stream. Before you stop working, determine how much money you will take each year from your retirement accounts and Social Security. Some financial planners recommend you take only 4% of your retirement funds each year, with a 3% increase each year to cover inflation. However, in current economic conditions, you should consider putting off dipping into your investments until the market has recovered to some extent, or reduce your withdrawals below the 4% level. You also have no need, at this point, to increase the withdrawal until inflation is once again positive.
Social Security minimum age is age 62. If you can afford to wait until full retirement age (people born between 1943 and 1954, age 66), you will receive an "delayed retirement credit" that adds 8% to your benefits each year until age 70. If you go online, you can download the Social Security Administrations retirement planner to figure out when you want to start receiving your benefits.
Eliminate Debt. Pay off those credit cards before you retire! If you can't pay those balances at the end of the month while you are earning a steady pay-check, it is unlikely you will be able to pay them off once you retire. Tackle those with the highest interest rates first. Some suggest transferring those balances to low-interest cards so that more of your money is going toward the principal amount owed than to interest charges.
Pay off your mortgage before you leave your 40 hour a week job. This is, for the most part, your single largest bill. Another option is to decide whether you want to downsize or move to a more cost-effective location to boost your retirement nest egg.
Lifestyle Makeover. Simplify your life. Cut back on expenses, and stick with a budget. If you have been in your house for long enough, consider selling your familial home for an empty-nester home, or even moving to a more affordable part of the country.
Other ways to simplify and cut costs: buy a more economical car, own one car rather than two, delay an expensive vacation until the stock market has recovered a bit more (a $10,000 vacation will remove $150 from your monthly income stream). Grow a garden, eliminating some grocery expenses. You will eat better food and get some exercise!
Sign Up for Medicare. Health care is becoming one of the biggest expenses we are facing. First, check to see if your employer offers retiree health benefits or if supplemental insurance will be necessary. Next, become familiar with the rules for Medicare, including when you need to sign up. Some basic facts you need to know: Medicare open enrollment starts three months before you turn 65 and ends three months after your 65th birthday. If you miss the six-month window, you will go without coverage until the following general enrollment period of Jan 1 through Mar 31 of the next year. The exception is for people still working full time and are on their employer's health plan. Their enrollment period starts as soon as they officially terminate employment. Also, take note that Medicare does not cover dental expenses.
Buy Long-Term-Care Insurance. The biggest threat to your retirement finances is, by far, an extended stay in a long-term-care facility. I have read that an average nursing home costs between $55,000 and $75,000 a year. If you are over 50, the premiums are relatively expensive. If you can afford them, the premiums are worth it. Your spouse will still have funds to live on, and your children will not have to deal with issues around where to put Mom or Dad if they fall ill. Some important benefits to consider include inflation protection and the freedom to hire home health-care so you can remain in your own home.
Create An Asset Allocation Strategy You are Comfortable With. Spreading your investments in your retirement accounts in a variety of holdings will help you deal with the ups and downs of the stock and bond market, and keep your savings somewhat stable. Traditional investment strategies suggest that the younger you are, the more risk you can absorb. Those who are preparing for retirement should consider shifting to a more conservative mix. Many financial planners are suggesting target-date mutual funds, based upon age group, which gradually get more conservative as the investor gets closer to retirement. It also is important to remember that your money may have to last 25 - 30 years, so it is important that the allocation strategy is not too conservative as you move into retirement. You will need to keep up with inflation.
Only you know what you are comfortable with, so talk to your financial planner. Trust yourself to make the decisions right for you.
Plan Your Income Stream. Before you stop working, determine how much money you will take each year from your retirement accounts and Social Security. Some financial planners recommend you take only 4% of your retirement funds each year, with a 3% increase each year to cover inflation. However, in current economic conditions, you should consider putting off dipping into your investments until the market has recovered to some extent, or reduce your withdrawals below the 4% level. You also have no need, at this point, to increase the withdrawal until inflation is once again positive.
Social Security minimum age is age 62. If you can afford to wait until full retirement age (people born between 1943 and 1954, age 66), you will receive an "delayed retirement credit" that adds 8% to your benefits each year until age 70. If you go online, you can download the Social Security Administrations retirement planner to figure out when you want to start receiving your benefits.
Eliminate Debt. Pay off those credit cards before you retire! If you can't pay those balances at the end of the month while you are earning a steady pay-check, it is unlikely you will be able to pay them off once you retire. Tackle those with the highest interest rates first. Some suggest transferring those balances to low-interest cards so that more of your money is going toward the principal amount owed than to interest charges.
Pay off your mortgage before you leave your 40 hour a week job. This is, for the most part, your single largest bill. Another option is to decide whether you want to downsize or move to a more cost-effective location to boost your retirement nest egg.
Lifestyle Makeover. Simplify your life. Cut back on expenses, and stick with a budget. If you have been in your house for long enough, consider selling your familial home for an empty-nester home, or even moving to a more affordable part of the country.
Other ways to simplify and cut costs: buy a more economical car, own one car rather than two, delay an expensive vacation until the stock market has recovered a bit more (a $10,000 vacation will remove $150 from your monthly income stream). Grow a garden, eliminating some grocery expenses. You will eat better food and get some exercise!
Sign Up for Medicare. Health care is becoming one of the biggest expenses we are facing. First, check to see if your employer offers retiree health benefits or if supplemental insurance will be necessary. Next, become familiar with the rules for Medicare, including when you need to sign up. Some basic facts you need to know: Medicare open enrollment starts three months before you turn 65 and ends three months after your 65th birthday. If you miss the six-month window, you will go without coverage until the following general enrollment period of Jan 1 through Mar 31 of the next year. The exception is for people still working full time and are on their employer's health plan. Their enrollment period starts as soon as they officially terminate employment. Also, take note that Medicare does not cover dental expenses.
Buy Long-Term-Care Insurance. The biggest threat to your retirement finances is, by far, an extended stay in a long-term-care facility. I have read that an average nursing home costs between $55,000 and $75,000 a year. If you are over 50, the premiums are relatively expensive. If you can afford them, the premiums are worth it. Your spouse will still have funds to live on, and your children will not have to deal with issues around where to put Mom or Dad if they fall ill. Some important benefits to consider include inflation protection and the freedom to hire home health-care so you can remain in your own home.
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