Blog - Our Top 5 Financial Planning Questions


Published: 04/26/2016

We address the top five questions we are asked by clients when talking through financial planning.

 

  1. What If You Don't Tell Your Money Where to Go?

“Too many people spend money they haven't earned to buy things they don't want to impress people they don't like.”

-Will Rogers

If you don’t tell your money where to go it will go to your lifestyle. Unfortunately, it is human nature to spend money as soon as we receive it. On April 15th when you dissect your earnings for the year do you ever wonder, “where did all of that money go”? How many more years will you continue asking that before you make the decision to tell your money where to go?

If you don’t tell your money where to go it will go to your lifestyle. Whether it is in a savings account or cash value life insurance, tell your money where to go before it goes elsewhere.

 

  1. What If  You Don't Take Advantage of Compounding Interest?

This is one of those “What Ifs” that you are probably not too concerned with today. But, what if I told you that a measly penny doubled everyday for 30 days totals $10,737,418?

 

What if you could double that penny everyday for 15 years? 30 years? How would that affect your retirement? When would you want to start doubling and taking advantage of compounding interest?

 

  1. What If  You Leave Your Family Early?

How can you lessen this impact as much as possible? For instance, how will any debt left behind be repaid? Or how will assets be taxed? We do not necessarily want to plan for this event but preparation is a must. Be sure to ask how your assets will be treated if they are left behind to your family.

 

  1. What If You Only Empty, Not Refill, The Bucket?

In Economist Nelson Nash’s book, Becoming Your Own Banker, he calls this “stealing the peas”. Long story short, when you drain your account for a major purchase it is crucial that you grow your wealth by refilling the account.

 

  1. What If The Banks Quit Lending Money?

In 2006 businesses were booming. Banks were lending money hand over fist (and making a pretty penny doing it). However, when the markets fell in 2008 our federal government stepped in and slapped regulations on lending. The same businesses that were booming just month’s prior were now in a cash flow crunch. Income halted but the debt remained the same. The businesses that relied on banks for lending saw some of the worst years on the books.

On the opposite side of the spectrum, businesses that controlled the banking function in their business models excelled and were able to take advantage of opportunities others were not. How will your financial plan look if the banks quit lending money?