2798 Heritage Oaks Circle
Step 1 - Define the client's objectives
Step 2 - Develop the plan to accomplish client's ojectives
Step 3 - Deploy appropriate tactics to implement the plan
Step 4 - Review and Repeat as life unfolds
My philosophy on personal finance is very simple and can be communicated in four steps:
To quote General Eisenhower on his plans for the Allied D-Day Invasion, “Plans are nothing; Planning is everything.” Most clients will have 30 – 70 years of life ahead of them. Looking at the “big picture” first helps. Plan holistically so all the pieces fit together. Plan for things going wrong. If the plan works when things go wrong, it will certainly work if things go right. Planning is everything.
Protect that which you cannot afford to lose. Protecting one’s home and auto is common sense. Protecting one’s ability to earn an income or the economic value of the primary breadwinner…not so much. Nothing can protect emotionally for catastrophic loss. But protection prepares financially for unexpected life events: the doctor says you’ll never work again; an accident opens you up to a lawsuit; market downturns; or premature death. Protect first.
One can only do two things with money: Spend it today or save it to spend later. Saving to spend later can help you step off the “job treadmill” because you are financially independent. Saving 20% of gross income will help yield a more secure future, regardless of where the funds are invested. Saving more takes pressure off the rate of return and provides a more stable investment track rather than riding the market roller coaster. Save more.
Growth is required for the long term. When the combined impact of inflation, taxes, increased standard of living and unexpected expenses is factored in, one needs to grow future funds at least about 4% just to keep pace. But stable growth, with managed risk, will yield more in the long run than aggressive approaches that look great in the short term, but disappoint long term. Conservative growth.
At Community Risk Advisors, we take a different approach to wealth management. Rather than juggle a network of advisors, our team provides holistic services, all under one strategic roof. We will give you new insight into all areas of your personal finances, so that you are in a position to see the whole and complete picture. Perhaps for the very first time, our clients begin to see how decisions in one area affects other areas of their financial life.