Financial Planning
Financial Planning Principles
Financial Planning is composed of six basic areas, investing, insurance, estate planning, retirement planning, tax planning and preparation, and risk management or insurance. In a complete financial plan, these areas are integrated into a complimentary package designed to help you achieve your goals. Each area has a purpose.
You can learn about each area of financial planning, but it is practically impossible to be an expert or to learn enough to eliminate the need for professional assistance. The IFI want you to be a success. We think it is wiser to concentrate on making money and investing it so that you can achieve Financial Independence. The more successful you become, the more you will need a financial planner.
Financial independence and prosperity are two of the goals that we emphasize. We want you to succeed. We want you to be prosperous. For that reason we include topics such as buying and owning your own business, and real estate investing along with investing in mutual funds and the stock market . Few financial planners do that. Most concentrate on mutual funds and the stock market.
If you can afford to hire a qualified financial planner, that would be great. There are many organizations that recommend that individuals do all their own financial planning and investment decisions. We do not always recommend that. For some people that would be wise, for others it would be a great mistake. Not everyone has an interest, the aptitude, or the time to learning all about financial planning. However we do recommend, if you have the desire and aptitude, to learn as much as you can about investing. The Financial Wisdom Seminar™ is designed to help you understand the basics of financial planning and investing, and to know when and if you need the assistance of a professional financial planner. It is highly recommended that you read Financial Wisdom and attend a seminar.
Establishing Financial Goals
Establishing financial goals is one of the most important areas of financial planning. All other areas of planning should be integrated and complementary with your goals. Lowering taxes, estate planning, retirement programming, and investing should all tie in with the achievement of your goals.
At the IFI we concentrate on helping you become financially independent. There are, however, many other goals that you may need to concentrate on before you attempt to become financially independent. Some of the goals that you may need to consider are as follows:
Getting out of Debt
If you are in debt, getting out is critical. Our program is extensive and includes money management techniques, repayment principles, and the psychological factors of debt. By following the principles in the Financial Wisdom book and Financial Wisdom Seminar you will learn how to develop the discipline and fortitude along with obtaining the knowledge needed to repay your debts in a systematic fashion. If you are deep in debt, it could take several years to get out. Without the discipline to control spending and group support offered through the IFI most people give up and fail. The ultimate price for failure is bankruptcy and a destroyed credit rating.
Paying off debt can be difficult if you try to do it in the traditional manner. For example, paying off a credit card with a $5,000 balance could take over 2 years with payments exceeding $200 a month (depending on your interest rate). This can be defeating and depressing. It also runs the risk of running into more credit problems and re-borrowing. If you are caught in this trap, you not only lose the opportunity to achieve wealth and prosperity, you place a great deal of stress in your life. This can impact the quality of life for both yourself and your family.
Saving for a child's college education.
The yearly tuition at a public four-year college or university exceeds $3,500. That does not include other costs such as housing, food, entertainment, transportation, etc. College can be expensive. If you wait until a child graduates high school, if may be too late. If you did not set money aside, you may have to liquidate important assets. One way to beat the problem is to establish an education fund and set aside a small amount each month. As little as $100 a month for a 20 year period at an average return could potentially pay for most of the education costs. Following the IFI program and using a college savings plan or other tax-advantaged programs, the results of your saving and investment program can far exceed the costs of an education.
Saving for a down payment on a home.
Saving for a home can be a very difficult process . Especially if you make poor money management decisions. Getting stuck in the rental grind can waste precious resources. The down payment on an average house using traditional mortgage could exceed $30,000. If you earn an average income, and you have a high overhead, saving for a down payment could take forever. Using the IFI program and being aggressive in your saving and investment plan along with creative financing and locating the right property, you could potentially purchase a home in as little as a year or two.
Saving for retirement.
Saving enough money for retirement is on the minds of most individuals. With an increase in longevity, many individuals are living for 20 or 30 years after they stop working. The dilemma that most people face is that Social Security is a shaky system to fund your retirement years. Although Social Security can be useful, for most people it will not allow a comfortable or fun filled retirement. To live on Social Security alone is similar to living on minimum wage. It's better than nothing but offers little more than an existence. To retire in some manner of dignity and enjoyment will usually require you to implement Social Security with a retirement investment fund.
The greatest thing going for anyone willing to take charge of their future is to invest in tax-deferred vehicles such as an IRA or 401(k) plan. Tax advantaged retirement program allow you to postponing any taxes on your investment returns into the future. That means your retirement portfolio can increase in value without being taxed! The results of a tax advantaged portfolio when compared to a taxed investment can be phenomenal. For example, if you invested $5,000 a year, at 8% for 40 years in a tax advantaged account, it would grow to about $1,400,000. That's well over a million dollars! Not bad! Now look at what happens if you invest the same amount in a taxable account. If you were in the 28% tax bracket, your $5,000 a year investment would amount to only about $ or less
Once you have your finances under control we can help you set goals that will dramatically increase your wealth including:
Owing your Own Business
Becoming Financially Independent
Becoming a Real Estate Investor
And More!
In the Financial Wisdom Seminar we will show you how to set goals that lead to financial independence, security and wealth. If you are tired of working and getting nowhere, join us and let us show you how to get ahead!
Institute for Financial Integrity, Inc.
PO Box 2543
Palm Beach, FL 33480
(561) 627-2345
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