11 ~ B4 ~ 40 Eleven important life choices to make before forty years of age; ensuring your long-term financial success.
11 ~ B4 ~ 40
Eleven important life choices to make before forty years of age; ensuring your long-term financial success.
Always pay yourself first:
If you do not pay yourself first, no one else will. Always take 10% - 15% of your net salary and use it to fund investment vehicles that use compound interest to grow your money. If you feel that 15% is too much at moment, start out the first year at 5%, second at 10%, and 15% for the third year and on. If you are not taking care of yourself, no one else is going to. Find someone to work with you on a pro bono basis, such as a qualified Financial Professional, insurance agent, etc.
Create Emergency Fund:
This is critical to keep your finances balanced. You should always have 3 to 6 months of expenses in a liquid format with easy access. Ask your Insurance Agent how to use life insurance to set this account up. Bottom line, you will need for so many emergencies such as car repairs, etc., that pop up periodically
Set up basic life insurance:
Worst case, use Term insurance, which is typically more affordable than permanent insurance. Great in your younger years. Always protect yourself, as if something were to happen to you, insurance proceeds, which are tax-free, will take care of your family, debt, and their long-term planning.
Compound Interest is your best friend:
Albert Einstein coined this term and it makes complete sense. The best way to understand compound interest is to do this simple exercise. Take one penny on day 1 of a 30-day calendar and double it every day for the 30 days in the month. So, on the second day, you will have 2 cents, on the third day, you will have 4 cents, and so on. I would love to be there on the 30th day when you realize how powerful this exercise is. This is compound interest on steroids but makes the powerful point Albert Einstein made about compound interest. Compound interest will become your best friend, once you realize the power behind the concept and how it affects your wealth accumulation.
Protect your family with insurance:
All of your family members should have some protection on their lives. We are quick to insure our home, car, phone, appliances, etc., but forget about family members that are so much more valuable. You also have to be cognizant of how much it costs to bury anyone. The average burial currently is around $ 12,000, so plan accordingly.
Understand the “Swiss Army” knife approach to insurance:
Life insurance is considered by many as “Death” insurance, as a death benefit is always part of the policy, but life insurance today has come a long way. With Living Benefits now available with professional carriers, you are now covered for life contingencies such as Terminal, Critical, and Chronic situations that allow you to use a high percentage of your policy’s face value in these situations. Life insurance is like a Swiss Army knife, that depending on the model in your hand, could have 3 or more tools for different needs. Learn to understand this valuable tool to help throughout your life and your financial planning strategy.
Eliminate all debt:
There are now programs through selected carriers that offer complete debt elimination. What this does is free up dollars going to pay off the debt that can now be used to invest and add to your lifestyle. Ask me about our Debt Free Life program that is fulfilling all expectations in eliminating all debt and creating a safe and predictable wealth accumulation strategy. Ensure the agent presenting is certified through the carrier they represent.
Set up a budget:
We live in the world’s largest consumer society and are always on the hunt for more, better, and best… and then we want more. Unfortunately, we cannot afford to spend any more than what we make, yet find ways, credit cards, etc., to add more power to our spending, and then get caught up in paying the money back, plus interest, which on the average across your lifetime equals 34%. Add 40 cents on every dollar earned for taxes and 74% of your hard-earned money is going directly to two segments of your life. You need a basic budget to start life with, building it to match income as you grow and develop your work life and compensation.
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Use Mortgage Protection to cover your house in case of personal tragedy:
Loving your new home? Make sure that the mortgage is covered with Mortgage Protection insurance that not only pays if something happens to you but depending on the policy, could also be building cash for you to use, tax-free from the cash value being built by permanent insurance policies. The last thing you want to happen is to have something tragic happen to you and the bank repossessing the home. Your home is typically your largest asset and always building equity. Take care of that asset and take out the mortgage protection. Your family will always thank you for taking care of business when you were around.
Learn Infinite Banking:
The concept has been in use in our country for over 160 years, but typically only the wealthy have access to this amazing financial program. This program is represented by only a few carriers, using certified agents, and is a Godsend to the Middle Class. Our Infinite Banking program, Debt Free Life, is a Money Management Program built on overfunding a special permanent life insurance policy in order to use the cash value as a savings vehicle and a personal bank.
This risk-free, legal, guaranteed, money management program gives Symmetry Financial Group clients the power to eliminate their entire debt, including their mortgage, in ten years or less without spending any additional money. It gives people the power to take control of their financial futures and build nest eggs for retirement using a turnkey money management system that helps them stop paying back their hard-earned money to lenders, generates tax-free savings, and provides families with protection through a permanent life insurance policy. This proven solution was previously only available to a select few individuals, typically the wealthy, but through Symmetry, it is now widely available to the average person.
Start a path to your eventual retirement:
Look around. The three-legged stool: Pensions, Savings, and Social Security is almost gone from our society. Today no one is going to take care of you, but you. Social Security which the Baby Boomers took full advantage of, may not be able to go beyond 2030 without an overhaul. Start an association with a Financial Professional that will help you start the planning process, ensuring retirement with enough money to outlast your life. Do not wait until you are in your 60’s / 70’s to start this process. There is not enough time to allow compound interest to work and build cash. Start planning NOW.
The key reason this list of eleven items was created was to help you prioritize what comes next. You have to start somewhere and if you took care of these eleven things before you reached the age of forty, you are going to do well financially all the way to retirement, as this system is being built on a strong foundation.
If I can add value in getting you started on the right track, please contact me. I offer pro bono advice, counseling, and direction with 60 years of work activity as an executive and entrepreneur with numerous certifications and licenses that helped me on my road of life and can certainly help you. I have always been focused on “Pay it Forward” ….
The last thought to keep in mind, “It is not what you Earn, it is what you Keep,” which ultimately builds your financial life.
Thank you,
James
James Hobart
Senior Field Underwriter
Simetre Financial Associates
805 515 8363
CA License # 0D01284
NM License # 3527895
CO License # 692253
OR License # 3527895