moneyFYI
Financial Freedom Is Merely Organized Common Sense
The Week Ended 5 January 2019
Tuesday 1 January – For those with a New Year’s resolution about financial planning
An overview of what to expect from financial planning. It is a process. Plans are not very helpful, but planning is. Intended for advisors and their client to use as background to the development of a useful relationship and eventual success.
Reading time about 4 minutes
Key elements:
- Strategy matters and only client knows what it should be.
- Advisors clarify
- Advisors provide the tactics to implement the strategic process.
- Regular review and revision is necessary
Wednesday 2 January – When I Grow Up
A Reprint – Reading time about 30 seconds
Characteristics of children that would be useful to hold in later life.
Thursday 3 January – Life Insurance Answers A “What If?” Question
A discussion of life insurance in the context of what it is for and what it does. Reading time about 3 minutes
Intended as a discussion piece with a client.
Key Elements
- Clients should assess the effect of a death in terms of need for morer assets or more liquidity.
- Life insurance is a tool and should be assessed in terms of what it does.
- Clients should know what the specific purposes are before deciding the insurance format
- There are four ways to create liquidity in an estate. The options can be compared on a cost benefit basis.
Friday 4 January – Counterfeits Everywhere
A Reprint Reading time – about 2 minutes
Key Elements
- Concerns about product, people, positions, and institutions that are not as they seem.
- People often hold values for a thing that were created years earlier and may no longer be true.
- Clarity and validation are important aspects of simplifying life is important
Saturday 5 January – Avoid “Either-Or” Thinking
A call to value process over specific goals and outcomes. Reading time about 3 minutes
Key Elements
- Assessing success or failure based on an outcome is debilitating for life decisions
- Life is far to complex to be able to include and defend all the variables
- Process is self correcting and builds on experience
- Considers “resulting” as expressed by Annie Duke in “Thinking in Bets”
moneyFYI 