How To Obtain Financial Stability Tough Enough To Weather An Economic Storm

If you ask a financial planner what financial planning is

, they will tell you it is about helping people achieve their financial goals. A planner or advisor will ask about what you want to accomplish financially in life and will work out a plan to help you achieve those goals in some form or fashion.

And thats great. Implementing a plan to get you from where you are now financially to accumulating a certain amount of money at a future time or properly insuring your risks or minimizing taxes is better than just winging it like most people do.

But, do you really have a clear idea of what is the optimum financial condition for a household?

And, how do you know what it looks like? In other words, what exactly are we attempting to achieve when we do financial planning?

So, what is the optimum financial condition? And does that mean it would be tough enough to weather an economic storm?

Well, financial planning as a subject is broken down into 9 specific facets and each of these facets must be in a certain level of completeness for the whole plan to be considered optimum. The optimum financial condition would be as follows:

1. You are implementing a written comprehensive financial plan. A written plan would contain programs to get each of these 8 facets into excellent condition so that the prosperity of the household can be achieved and monitored.

2. Policies and procedures regarding finances would be known and followed in the household. This includes knowing the basics principles of personal finance and being competent to handle the financial affairs of the household with certainty and success. I have created a course to teach people these simple basics.

3. You are experiencing affluence in your business. Your business is expanding and very profitable. You are enjoying your work and are enjoying success.

4. You have an abundance of income. You are enjoying a level of income that not only pays for your lifestyle, but enables you to set aside sufficient funds for retirement and other purposes. You have also made provisions to generate tax-advantaged income in retirement that pays for your lifestyle comfortably with the option to work or not.

5. Your household and business are debt free. Your house is paid off and you do not carry any other debt. You are comfortably paying for most of lifes expenses from cash and not from credit. Your credit is also in excellent shape so if you do need to borrow, you can do so at the best rates.

6. Your estate plan would be complete. This means that you have up-to-date wills and other documents to ensure that your health and legal matters will be taken care of under your directions and not the State. This also plans to keep estate and gift taxes to a minimum.

7. Your taxes would be as low as possible. Income taxes will always be levied against income, so a plan needs to be implemented to not only save taxes today, but for the rest of your life. Neglecting to plan for income taxes in retirement can destroy your retirement lifestyle when the time comes.

8. Virtually all of your assets have protection from loss. This means that you own assets in a way that minimizes the risk of loss from creditors, market losses, tax losses, inflation and other forms of asset destruction.

9. Your investments are stable and productive. The best investments are those that get the best results for the purpose for which they were invested. In other words, the best investment isnt the one with the highest return. If the rest of your financial plan is being done, you do not have to take unnecessary risks in other investments to become affluentyou will already be there.

This is the status I would think most people want to experience. There are a thousand different paths to get there and about a million paths that will not even get you closeyou are taking a path right now, but have you asked whether that path will get you to this optimum condition - and will it weather an economic storm? You should know the answer to this question as well as what you path you need to take to get it to the most optimum level possible.

There is a direct path to this destination. I found it after a couple of decades of workthe most effective methods of getting the job done.

If you would like to know more, drop me an email or call.

by: P.Christopher Music

POST COMMENT

How to gain peace during times of economic despair and hardship Economics Help at HelpWithAssignment.com Free access number - an economical way to access international calls Achieving Financial Independence in an Economic Downturn Hotel Roma 3 stelle economico The Socioeconomic Theory With the Most Impact Is Your HR Department Ready For The Economic Upturn? Economic Distress Help In This Economic Downturn Reclaiming Your Economic Life 7 Ways To Keep Clients In An Economic Crisis 8a Certification - How do I prepare the narrative statement of economic disadvantage? Should You Be Concerned About The Current Economic Times?