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Make Better Financial Decisions - (9 of 9) Conclusion



Better Financial Decisions-Conclusion


Making Money ≠ Having Money. Ensure that by your 60s, you belong to the 'Have Money' category. PlanAssist® offers a flexible yet disciplined roadmap to achieve this goal. The distinction between making and having money is significant, primarily because financial decision-making processes differ markedly. PlanAssist® provides a structured yet adaptable approach, mirroring the principles that individuals with substantial assets often use in their decision-making. Unlike those who may earn a high income but fail to accumulate significant assets, this book outlines common strategies utilized by many affluent individuals and couples.


Key Lessons Recap:


  • Have a Plan: A thoughtful financial plan aligns your actions with your priorities, core values, risk tolerances, and time horizons, while also considering family legacy. Regular reviews ensure it remains relevant as life changes.

  • Be Diversified: Mitigating volatility involves diversifying investments across asset classes and accounts. Balancing tax liabilities through diversification across Tax-Free, Tax-Deferred, and Taxable accounts helps avoid emotional decision-making and overconcentration. Organizing investments by time frame also contributes to stability.

  • Seek Counsel: A Circle of Advisors offers input and guidance to minimize biases and critically evaluate assumptions. Remember, following their advice is not obligatory, and it should not resemble a sales presentation.

The greatest risk to anyone's financial future is likely not market volatility or unexpected expenses; it's inaction. Financial planning is fundamentally proactive. While some investments can be managed passively, this is only after the planning process has begun. Without taking that first step, progress stalls, and goals remain out of reach.


This book provides a flexible framework rather than a strict checklist, offering guidance while allowing for individual differences. Starting with a comprehensive plan is crucial; it doesn't have to be complex or dependent on advanced financial planning software, though such tools can help visualize and connect different financial aspects. A diversified investment strategy is essential for protecting your portfolio from market fluctuations and fostering growth. Moreover, seeking professional advice during crucial financial decisions can significantly impact whether you meet your financial goals.


Consider this book a launching pad for your financial planning journey(Better Financial Decisions). With the principles of planning, diversification, and seeking counsel as your navigational tools, you're well-equipped to tackle the intricacies of wealth management. Achieving financial security and independence is achievable, but it demands taking decisive action. Begin now to forge a future where financial stability and peace of mind are not just possible but guaranteed. The revised text maintains the original message's intent while enhancing readability and coherence.



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FAQ(frequently Asked Question)


1. What is the difference between making money and having money?

- Making money refers to earning income while having money, which involves accumulating assets and wealth over time. This distinction is crucial because it highlights the importance of earning a high income and managing and growing that income into significant wealth through wise financial decisions.


2. What is PlanAssist®?

- PlanAssist® is a flexible yet disciplined roadmap designed to help individuals transition from merely earning money to having significant wealth. It provides structured approaches and strategies affluent individuals use for effective financial planning and wealth accumulation.


3. How does PlanAssist® propose to help individuals achieve financial stability by their 60s?

- PlanAssist® suggests creating a thoughtful financial plan, diversifying investments, and seeking counsel from a circle of advisors. This approach aims to align one's actions with their priorities, mitigate risks, and make informed decisions to ensure financial stability by the 60s.


4. Why is having a financial plan essential?

- A financial plan aligns your actions with your priorities, core values, risk tolerances, and time horizons, considering aspects like a family legacy. Ensuring that your financial decisions are deliberate and focused on achieving your long-term goals is vital.


5. Who are the Circle of Advisors, and why are they important?

- The Circle of Advisors refers to professionals who offer input and guidance on financial planning. Their role is to minimize biases and critically evaluate assumptions, ensuring that the financial advice followed is well-considered and not just a sales pitch.


6. What is the most significant risk to one's financial future according to PlanAssist®?

- The most significant risk is inaction. Financial planning is fundamentally proactive, and without taking the initial steps to plan and manage investments, progress stalls and financial goals remain out of reach.


7. Can financial planning be passive?

- While some investments can be managed passively, this is only feasible after a comprehensive planning process has begun. Active planning and decision-making are essential for setting the stage for potential passive investment management.


8. What is the key to achieving financial security and independence?

- The key lies in taking decisive action. Starting with a comprehensive plan, diversifying investments, and seeking professional advice are crucial to achieving financial security and independence.


9. Is the financial planning process complex and dependent on advanced software?

- No, starting with a comprehensive plan can be simple and independent of advanced financial planning software. Such tools can help visualize and connect different financial aspects. Still, the core of financial planning is understanding and applying the principles of planning, diversification, and seeking counsel effectively.




DISCLOSURE - All written content on this article is for information purposes only. Opinions expressed herein are solely those of Core Wealth Consultants. Material presented is believed to be from reliable sources, however, we make no representations as to its accuracy or completeness. Core Wealth Consultants, LLC a Registered Investment Advisor in the States of Florida, Indiana and Michigan. You should always consult an attorney or tax professional regarding your specific legal or tax situation. Diversification and asset allocation does not assure or guarantee better performance and cannot eliminate the risk of investment loss.

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