Economic Confidence: The Goal of Your Financial Plan
November 17th, 2009 // 11:13 am @ Andrew Rosenbaum
What most clients really want in simplest terms is economic confidence. They don’t want a tremendously complex plan that requires luck for it to work.
Economic confidence can only be experienced if their plan is designed to work under almost any circumstance. The certainty would be derived by mitigating risk as much as possible, while simultaneously providing for what I call the “hit list.”
The “hit list’ is my pet name for the universally-shared objectives all people want to see their plan provide them with, including the following:
- Optimized cash flow
- Maximized actual rate of return
- Legally pay the least amount of taxes
- Have more tax-free and tax-advantaged money
- Feel greater security by balancing risk/actual return
- Make philanthropic and charitable giving possible
- Enjoy a near-guaranteed financial safety net so that higher risk financial ventures become tolerable
- Know that one’s wishes for their family’s ongoing financial needs will be planned for and realized no matter what
- Have a scientific measurement that verifies your plan’s ability to achieve all of the above goals, free from rhetoric or salesmanship
These are the positive outcomes that people seek. They also want to ensure protection from the following negative outcomes:
- Possibility of premature disability
- Possibility of premature death
- Unforeseen income and estate tax situations
- Unexpected lawsuits
Does your financial plan give you economic confidence?
Category : Featured Content &Financial Certainty &Financial Planning
