The Process Essay

486 WordsSep 1, 20122 Pages
The Process Most people that I come across have purchased several products throughout their lifetime with no real plan in place. This type of approach focuses on the hot pick of the day rather than fundamental planning strategies. I, on the other hand, look to help my clients understand what decisions to make in life through a process rather than focus on specific products. 1) The first part of the process is to focus on the foundation to protect the things that you currently have. This area is designed to answer the question “What would happen to me or my family if my income were to suddenly stop?” This section is called Risk Management. A) Can you think of some ways that would cause a stoppage of income? Ex. Death, Disability, and health issues including the possibility of long‐term care 2) After we have protected your life, income, and assets, we look to help you accumulate wealth for your future (i.e. Retirement, Children’s Education, General Wealth Building) This is where most people jump to first, neglecting the Risk Management phase. A) There are many different ways to accumulate wealth but some are better than others based upon YOUR time frame, objective, and risk tolerance. B) There will not be 1 single solution to all of our objectives. We need to diversify the vehicles that house our investments based upon having short term access/liquidity for emergencies, intermediate growth opportunities, and long term tax strategies to position ourselves for financial independence. 3) The third phase should be the FUN part!! Distributing the wealth for our personal goals (Wealth Distribution). 3 Areas of focus: A) Do you have access to the money when you need it? ( Based on the investment account that was originally established. i.e. rules/ regulations) B) Do you have enough money that you will NOT outlive?

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