In this episode we discuss the order in which you should attack your financial plan. Whether you are a novice or seasoned investor, you cannot avoid this basic checklist of financial stewardship.
Assessment - The process takes us through the practical day to day numbers including current family or business budget, debt and cash flow. We snapshot the current and expected margin to try and get an understanding if the client is able to live on 70% of their cash flow while investing, saving and giving the remaining 30%.
Narratives - As investors we must understand the impact of what we call, The 5 Meta Narratives: Global Economics, US Finance, Politics, Civil Rights and Media/Technology
Mapping - When working with individuals and businesses our hope is to outline a constellation of goals, action points, gaps and relationships that will need attention and stewardship.
Values - family values dictate direction, risk and investment strategy. the discovery and discussion of values can hone your current risk narrative while adding efficiency and congruency to your families/business goals. Values are sewn deep into us and drive the 'why versus what conversation'. When I know what I value most in life then I can work the narrative backwards to outline action points and investment strategy.
Emergency fund - the benefit of having a $1500 emergency fund set up to offset healthcare or automotive bills. This is especially effective when paying off debt and pushing any excess funds to reducing debt.
Debt - speaks for itself - every family and individual needs to utilize a plan for reducing debt to prepare for an investment future.
Hedge - a safety bet meant to protect market investments. Our discussion centered out the use of gold and silver, specifically.
Savings - self explanatory
Safety - this requires ongoing conversation and attention to the wills, trusts and insurance policies that protect wealth and wealth transfer
Cash Flow - one of many products or markets that can produce monthly remuneration for value.
Conservative Investing - stocks, bonds, annuities, 401k, IRA's etc.
High Risk Investing - futures and some options products
Wealth Transfer - we recommend working with a fiduciary to set up draws from your investment products and to protect the investments passed on to your family.
Equity Stakes - we believe that the new stock market will be holding equity stakes in small businesses.
Additional notes:
What shapes our progress through these steps is the idea of operating out of faith instead of fear. In our worldview, we are stewarding things that are not ours to keep and so it allows us the freedom to invest without the fear of loss.
Our hope is to produce value to honor God, bless our families and to invest in our friends and communities.