2. Find Real Balance . . .
. . . to protect against the unexpected
while growing your wealth.
An Uncommon View . . .
. . . to challenge traditional thinking
and offer a refreshingly new approach
to financial decision making.
3. Common vs Uncommon...
Today, >90% of the wealth
in the country
<10%
is owned by of the people
This smaller group thinks about money and wealth building in an uncommon manner.
Learning their secrets may be the key to unlocking your full financial potential.
Common Financial Myths...
“My money only needs to keep pace with inflation.”
“I will be in a lower income tax bracket at retirement.”
“My 401(k) plan creates a tax savings, which can be spent or invested.”
“Compounding interest creates a financial miracle.”
“I won’t need life insurance when I retire.”
“A 15 year mortgage costs less than a 30 year mortgage.”
“Disinvesting is the same as investing.”
“Rate of return on my assets is more important than regular savings habits.”
“To increase protection, my cash flow will suffer.”
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4. Traditional Needs/Goal Planning
Financial Target
College?
Retirement?
Death?
Goal = Time x Money x ROR
Problems:
Goal Incorrect Linear Math
Inefficient Minimum Protection
Requires Guesswork No Financial Cushion
Promotes Risk Reviews & Updates
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5. Impact of Needs/Goal Planning
Optimal Results
Financial Target
Actual Results
Goal = Time x Money x ROR
Threats to Your Money:
Financial Disorganization: Multiple financial institutions, constant change,
bias, hype, inefficiencies, money locked up,
confusion, costs, penalties
Real Cost of Living: Inflation, PLUS taxes, new inventions,
things wearing out, support for children,
improved lifestyle, unexpected life events
Failed Products and Strategies: Compound Interest, credit card debt,
subprime, low savings, high risk asset
allocation, term and invest difference,
misuse of qualified plans
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6. An Uncommon Perspective:
We start with your BALANCE SHEET...
Assets Liabilities
Net Worth
...And then add your PROTECTION and CASH FLOW
decisions, to create a WIDE ANGLE VIEW of your finances
PROTECTION
Assets Liabilities
Net Worth
CASH FLOW
The Real Goal: To move toward, and then maintain,
an improved level of FINANCIAL BALANCE
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7. Achieving Financial Balance
Four Interdependent Domains
Financial Balance Rules
Protection Liabilities
First Priority Eliminate debt
Full Replacement Avoid taxes
Lifetime Coverage Mortgage selection
Assets Cash Flow
Rate of return Redeploy Income
Minimal risk Minimize protection costs
Avoid taxes Improved savings
Liquidity Lower debt and taxes
Budgeted lifestyle
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8. The Living Balance Sheet...
Results:
Optimal Financial Balance Wide Angle View
Economic Based Financial Rules Lower Risk
Efficiency/Cost Avoidance Assumes Unexpected Life Events
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9. Quick Facts
Client Name (First/Last): Date of Birth/Age: /
Spouse’s Name (First/Last): Date of Birth/Age: /
Client E-mail: Spouse E-mail:
Total Maximum Health Coverage Death Benefit Client A:
Total Monthly Disability Income Client A: Death Benefit Client B:
Total Monthly Disability Income Client B:
PROTECTION
Property and Casualty Health and Disability Legal Life
Insurance Insurance Documents Insurance
ASSETS LIABILITIES
Personal Property Short Term
Savings Taxes
Investments Mortgages
Retirement Business Debt
Real Estate Total
Business
NET WORTH
Total
CASH FLOW
Gross Income Protection Assets Liabilities Net Income
Gross Income Client A: Income Tax:
Gross Income Client B: Short Term:
Mortgages:
Business Debt:
11. The Living Balance Sheet Design Tools
Data Gathering Simple to complete Fact Finder auto-populates a series of
reports, calculators and vignettes.
Strategic Solutions Your Financial Representative is fully equipped to offer
creative strategies and solutions designed to improve financial results.
Action Steps To assist with implementing financial decisions, The Living Balance
Sheet instantly creates an Action Step Score Card. Once established, automated alerts
track changing financial circumstances.
