Stop Paying Hidden Investment Fees! by Dean C. Kendall

Author:Dean C. Kendall [DEAN C. KENDALL]
Language: eng
Format: epub
Tags: -
Publisher: BookBaby
Published: 2017-12-19T16:00:00+00:00

Chapter Six

PROACTIVELY MANAGE THE REST OF YOUR FINANCIAL LIFE

This is an important chapter because it is a blind spot for most families and investors. I’ll keep it short and to the point.

Pay for a Comprehensive Financial Plan and Stick to It

We live in a do it yourself world but your financial life is not the place to learn as you go. To optimize the plethora of choices available to you, find a fee only planner and have him or her create a comprehensive financial plan for you. It should cost between $2,500 and $5,000 (up to $10,000 for a truly complex situation). If you stick to the plan, you’ll have your money back in short order. This chapter outlines the most common financial mistakes families make, but there are many. Having a fee only planner who can create a comprehensive plan, and then help you to stick to that plan, will be the best investment you will ever make. Your plan should be reviewed yearly, but if you have a simple plan and are sticking to it you may need to only update every three years.

Create and Stick to a Family Budget

Your budget should be part of your comprehensive plan, but if not, be sure to create one for yourself and then work together as a team to live within your means. Don’t start your budget with your big expenses like house and car. Look first at what you have to save and invest to reach your Ideal Life in the timeframe you have chosen and then “back into” how much lifestyle you can afford. That may mean downsizing now to ensure that you can live your Ideal Life forever, free from financial stress. You cannot enjoy life, family and friends if you are constantly stressed about money.

Proactively Reduce Taxes

Taxes can take a HUGE CHUNK out of your income. Proactively (but legally) minimizing your taxes each year can save you thousands or tens of thousands of dollars. Saving just $1,000 per year could mean an extra $79,000 over 30 years. Ten thousand dollars per year in tax savings could mean nearly one million dollars! You must make every effort to legally reduce your taxes.

Proactively Optimize Insurance

Insurance is a tricky devil. If you don’t have enough, the wrong loss could wipe you out. If you have too much, it acts like taxes or high fees, reducing the cash you have available to reach your financial goals. Just like taxes, insurance can cause swings of tens of thousands to millions in your net worth. We know it is boring and difficult to understand. Insurance companies count on making it dense to keep you from trying to understand it. You must review your insurance every year and optimize both the type of insurance you carry and the amounts.

Mortgages

For most people, the single largest investment they ever make is in their house. If you have a mortgage, small changes in interest rates or the structure of your mortgage can mean paying off your mortgage years earlier and paying tens of thousands less in interest costs.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.