True Financial Potential™

The primary strategies and products that make up our financial picture should be sustainable today and for decades into the future; however, there are real threats that we must consider if we want to implement those products and strategies. This attention to sustainability is missed all too frequently as these threats undermine our true financial potential. Three threats in particular are the most common:

1.)  Traditional Financial Planning

  • Needs-based- Is a minimalist approach to “only what I need” versus “what is possible?”
  • Proven Inefficient- Requires continuous monitoring & review; is very costly; often, lose a great deal of money without knowing about it.
  • Requires guesswork- Projections seek to attain “hit” versus “miss” scenarios using rates of return, taxes, inflation, interest rates
  • Promotes risk- The projected mind-set that high-risk is baseroduces high-reward while downplaying the impact of high-loss sequences in time
  • Based on linear math- Is an accumulation method in growing wealth. It does not use a multiplier-effect theory which our economy is based
  • Minimum protection- Home, Auto, Health, Disability, Long-Term Care, Legal Documents, Life are typically incomplete and/or minimized
  • Little financial cushion- greater emphasis is placed on investing with little attention given to saving & sufficient liquidity

2.)  Financial Disorganization

  • Multiple financial institutions
  • Constant change
  • Bias origin
  • Hype origin
  • Inefficiencies
  • Money locked-up
  • Confusion
  • Penalties
  • Lost opportunity costs

3.) The Real Cost of Living

  • Inflation
  • Servicing debt
  • Multiple different taxes
  • New inventions
  • Wear & tear on things
  • Unexpected support for children
  • Improved lifestyle
  • Unexpected life events