Life's Journey
~ a Financial Planning Resource ~
Life' Journey: a Financial Planning Resource
P.O. Box 30305
Edmond, OK 73003
toby
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10 Golden Rules of Financial Planning
- 1. Forget Retirement... Financial Independence should be your ultimate goal.
- 2. Market Timing is for fools... but a disciplined investor can take advantage of market fluctuations by setting a prudent allocation and then rebalancing on a timely basis (link to blog post).
- 3. A financial plan is a work in progress and should be reviewed and tweaked at least once a year.
- 4. As Master Chef Gordon Ramsay preaches, "keep it fresh and simple." Although some clients do require more complex solutions, most of us are better served by adhering to Ramsay's admonition.
- 5. NEEDS are financial goals that MUST be met. DESIRES are secondary goals that the client would like to see fulfilled if possible without threatening NEEDS. Funds set aside for NEEDS should be invested in a more conservative manner.
- 6. Start saving as early as possible. If an investor starts saving at age 30 for retirement (or financial independence) by the of age 70, then to accumulate $1,600,000 over that 40 year period will require an annual contribution of $10,350 if an average annual rate of return of 6% is achieved. By age 35 that annual contribution jumps up to $14,350, by the age of 40 it's $20,250 and then by the age of 45 it's $29,150. The magic of compounding interest is most definitely wasted (or perhaps NOT wasted) on the youth!
- 7. I am of the opinion that an advisor should attempt to offer a variety of methods to compute their fees and allow the client to select the one that fits their needs and desires best. Whether it's a percentage of assets under management, hourly fees, retainer, or set-price per project, allowing flexibility in choosing a payment method ultimately allows a client to do what's in their best interest.
- 8. Risk assessment should be conducted for every client as such risks can topple the best laid plans.
- 9. Live the Life YOU Love! Financial independence IS the ultimate goal. But as you work toward that goal you should still take time to smell the roses and enjoy the journey.
Two FREE Documents Available for Immediate Download:
Client Brochure - download this 16-page document for a complete summary of what you can expect to receive from an FGP-OK financial plan.
Retirement Lifestyle Workbook - use this 16-page document to fill out specific information to begin your own financial plan.
Beaver's Bend Park, Oklahoma
Sunrise from the top of Mount Scott, Wichita Mountains, Oklahoma
Life' Journey: a Financial Planning Resource
P.O. Box 30305
Edmond, OK 73003
toby
Follow us: