Financial Mastery 101: Getting Your House in Order

transcript

Stone Financial Retirement Planning

Financial Mastery 101By:

Ken L. Stone

How Much Will You Make?How Much Will You Make?

Based a 6% annual Salary Increase

$0$2,000,000

$4,000,000

$6,000,000

$8,000,000

10Years

20Years

30Years

Your Life Time Earnings

$30,000 peryear

$60,000 peryear

$90,000 peryear

Gosh IGosh I’’ve Got It Made, Right?ve Got It Made, Right?

If you earn 60,000 a year in just twenty years you will have earned $2,207,100.

You’ll have plenty of money, RIGHT!

Road Blocks to Financial SuccessRoad Blocks to Financial Success

7 Road BlocksNo Goals

Ignorance

Poor Investments

Inflation

Procrastination

Road Blocks To Financial SuccessRoad Blocks To Financial Success

No Goals

The most common obstacle to financial success is not having any goals.

With no goals you have no direction and no way of knowing if you’re on track.

If you want a car, house, or to protect your family you MUST set goals.

Ignorance

Many people of all educational levels lack basic understanding of how the financial world works and how to make their money work for them.

Rule of 72… If you place your money in an investment earning 9%, how long would it take to double your money?

72 divided by 9 equals 8

DebtCredit Card \ kred’-et kard\n.:

1. A means for buying something you don’t need, at a price you can’t afford, with money you don’t have.

Outstanding Balance $2,000

Interest rate: 18%

Minimum Payment 2.8%

Interest cost over the loan Period $1,906

Payoff Period: Over 11 Years

Poor Investments work in reverse. They consume money and wealth.

Beware of investments that promise everything. If it sounds too good to be true, it probably is.

Inflation

If your money is not working for you, then it is losing ground due to inflation.

Taxes…The number of days you have to work just to pay your taxes.

Procrastination

Some people never get around to planning for the future.

“Procrastination is my sin:

It brings me constant sorrow.

I really shouldn’t practice it;

Perhaps I’ll stop tomorrow.”

Comprehensive Wealth Comprehensive Wealth ManagementManagement

Six Keys to Financial Success

#1 Risk Management#1 Risk Management

Protecting your assets and your earning power is easy to overlook when planning for the future

Risk ManagementRisk Management

Health Care

Medicare

Long-Term Care

Disability Insurance

Homeowners Insurance

Automobile Insurance

Liability Insurance

Life Insurance

#2 Cash Management#2 Cash Management

Cash Management involves optimizing your cash flow, building a liquidity fund, effectively positioning your available cash, and building your net worth.

Cash ManagementCash Management

Asses your current situation.Month to Month Cash ManagementLiquidity FundTraditional SavingsTax-deferred Savings AlternativesTax-Advantage Savings AlternativesRefinance your Mortgage?Credit cardsFour Ways to Increase your Savings

Set goalsPay yourself firstArrange to have your savings deposited automaticallyStart saving now for retirement

#3 Investment Planning#3 Investment Planning

A major portion of your financial picture involves your personal investment plan.

Unfortunately, without a coordinated strategy, it’s difficult to build an effective investment portfolio that meets your financial needs.

Investment PlanningInvestment Planning

Determine your Investment Profile

Evaluate the Risk

Diversification

Investment Options

Stock Market

Mutual Funds

#4 Tax Planning#4 Tax Planning

What is your Marginal Income Bracket?Reduced Benefit from Itemized Deductions.Taxing Children’s IncomeWinning With Tax Exempt InvestmentsTax Deferred InvestingTax Advantaged InvestingTax Planning Opportunities

#5 Retirement Planning#5 Retirement Planning

An Effective retirement plan identifies your retirement goals, show you how to take advantage of all your funding sources, and accounts for the effects of taxes and inflation.

Retirement PlanningRetirement Planning

Retirement IncomeWhere does it come from?Cost of RetirementCost of ProcrastinationSources of Retirement IncomeTypes of retirement PlansPersonal Savings & InvestmentsIRA Rollover Distribution Methods

#6 Estate Planning#6 Estate Planning

With Federal Taxes running 50-75 %, estate planning is more important than ever. A proper plan can help manage your affairs and reduce taxes paid by your heirs.

Estate PlanningEstate Planning

Find an Attorney

Tax Reduction Tools

Estate Distribution Techniques

Establish a Trust if needed

Types of Trusts

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Financial Mastery 101: Getting Your House in Order

Economy & Finance