Avoid these 2 common financial mistakes to live a more stress free life.

 

These two common financial mistakes lead to a greater sense of uncertainty and a more stressful life. The Life You Can Afford to Live is designed to provide you with tools to lead the best life possible. So, naturally we wouldn’t want you to miss two of the most common mistakes that we see people make in their financial life.

 

2 Financial Mistakes

 

Most often when someone speaks with authority on a subject its because they’ve had personal experience within the subject matter. Certainly true in this instance. I am bringing you this message from a point of I’ve been there and didn’t enjoy it and didn’t even get a t-shirt. Fortunately, my experience with this was early in my business life therefore the results weren’t catastrophic. However, the stress and tension that resulted taught me valuable lessons.

 

My goal is to provide you with enough information for you to know when to ask for help. We certainly can’t get to specific in this format but you should be able to glean enough that you know whether to raise your hand or not. Our team stresses these points throughout our process so we are well equipped to answer any questions that may surface.

 

The 2 Common Financial Mistakes to Avoid

 

1. Not Creating Contractual Wealth

Contractual Wealth is when someone else has a legal obligation to you. Contractual wealth also means that you have recourse if they do not fulfill their contractual obligation. This type of wealth provides you with a higher level of certainty and predictability. Certainty and predictability provide you with a more stress-free financial life.

Before sharing examples of Contractual Wealth building tools lets look at its counterpart, Statement Wealth. Statement Wealth is the most common form of saving and investing. Likely due to ease or someone lacking in knowledge of alternate investment options. The premise of Statement Wealth is that you save or invest into vehicles in which you have little control over the outcome as well as any recourse should it not have your desired result. Common examples are 401(k)/IRA Plans, Stock Portfolios, Mutual Funds, ETF Investments and Savings Accounts.

Some examples of Contractual Wealth include:

Secured Bonds – Mortgages – Rental Real Estate – Commercial Real Estate – Annuities – Life Insurance – Reverse Mortgages – Private Lending with Collateral – Asset Care Plans – Business Ownership – Grantor Retained Annuities

 

Click here for a quick 2 minute video explanation of Statement Wealth vs Contractual Wealth

 

2.  Not Creating Tax Free Income

Mark Twain once said, “the only certain things in life are death and taxes”. So true, but one thing Twain failed to mention is that Tax Rates are always changing. You certainly can’t ever count on paying the same tax rate. In an effort to reduce or even eliminate the risk of Higher Tax Rates we want everyone to take a more intentional approach towards creating Tax Free Buckets of money. The ease and allure of Tax deferral is great and we want you to have some funds in that environment, but not solely.

 

Particularly Tax Free money helps you to manage how and where you withdraw money from during retirement. Thus, creating the aforementioned predictability and certainty that reduces stress in the Golden Years.

Some examples of Tax Free Investments include:

Real Estate – Municipal Bonds – Life Insurance – Roth IRA – Roth 401(k) – SLIRPS – Some Captive Strategies

 

Hopefully, this will give you the ability to AVOID these two common financial mistakes. I’ll close with a couple of questions.

Have you addressed these two financial mistakes in your own plans?

Would you like help in avoiding these pitfalls?

 

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Waiting

May 26, 2017 — Leave a comment

Waiting

 

Why are you waiting? What are you waiting for? These questions may be haunting to you. Haunting particularly if you aren’t one who makes decisions easily. For the indecisive person they are waiting on well….. almost everything. Indecision or the mere unsettled nature of waiting creates tension, stress and holds you back from the life you desire.

“He who knows others is wise: he who knows himself is enlightened”

                                    –  Lao Tzu, Chinese Philosopher

Understanding your ability or inability to make decisions is hyper-critical to one’s success in business and life.  Early in the Discovery Phase of Drive Planning’s #BeIntentional process are efforts to gain a deeper understanding of you and where your strengths lie. One method of self-discovery is understanding someone’s Kolbe A Index. This measurement seeks to find your strengths in four categories; Fact Finder, Follow Through, Quick Start and Implementer. You can learn more about this from a previous blog post, How To Find Your Superpower.

For now, let’s get back to the person who is playing the waiting game. Referencing the Kolbe A Index, I have found that most often times those who struggle with taking the step tend to score high in the Fact Finder category of the Kolbe Testing. To generalize, a high Fact Finder is always seeking more information prior to deciding. Even when intuitively they know it is a decision that is likely in their best interest.

Not surprisingly to me; the most successful people are great decision makers and do not always need all the facts to support their decision. This “Quick Start” wiring is the makeup of most of the CEO’s and business leaders in America.

The brilliant Seth Godin recently wrote, Facts are not the antidote to doubt. A brilliant blog post citing that indecision is almost always rooted in fear. He continues by stating, enrollment or engagement is the way to earn trust and ultimately move forward.

So, my encouragement to anyone who is waiting to move forward is that you begin with a deep understanding of your personal DNA or simply how you are wired. This journey in self-discovery may help you to identify areas where you are operating out of fear. It may help you to realize that there are areas where you may not have all the facts but you need to trust by engaging.

 

Maxwell Getting Started

 

My goal, along with each of the Drive Planning Team members, is to help you go further faster. If there is a decision you need to make or something that you know that you should do; allow us to encourage you to have faith or possibly assist you with understanding your best next step.

 

October 4, 1993: The Mogadishu Mile

Our troops are under fire. Casualties are mounting and The US Army Rangers Commander instructs a young Ranger to Drive the Humvee! He responds, “But sir, I’ve been shot!”. The Army Ranger Commander, “Everyone’s been shot! Drive The Humvee!”

This scene was portrayed in Director, Ridley Scott’s 2002 movie Black Hawk Down. Follow this link to watch The Mogadishu Mile Scene.

 

Drive the Humvee

 

This past weekend I spent 3 days at The Souly Business Conference. Set on beautiful Lake Allatoona at Camp High Harbor; 200 men have gathered each quarter for the past 14 years to experience the grace of Jesus and the acceptance, love and fellowship within this community of men. I highly recommend Souly Business to any man who desires to experience life with a community of men who strive for greater authenticity, intentionality and purpose.

 

While at Souly Business we had the honor of hearing from Retired US Army Colonel Paul Trotti, Sr. on the topic, Finishing Well. His presence and resume certainly gave him credibility to speak on the subject. He recounted The Mogadishu Mile Scene in Black Hawk Down from his friend’s perspective, The US Army Ranger Commander, played by actor Tom Sizemore in the movie. Colonel Trotti a commanding silver haired man in fatigues, combat boots and an impressive physique for anyone, particularly someone near 70 years of age.

 

Colonel Trotti, a regular attendee to Souly Business knows that all humans, certainly men, are broken. Broken in that we all struggle with regret, lack of confidence, guilt, greed, impure hearts and this list could go on and on, ultimately sin. However, his encouragement was that we are all in this together and that everyone has a past, “we’ve all been shot.” Though wounded we can’t allow that to define us. We must pick ourselves up and keep living intentionally in order to finish well. Certainly a message that sounds familiar to our Drive Planning Members!

 

If this message finds you at a point of despair or wanting to give up. Remember We’ve all been shot. You aren’t alone nor should you try and work it all out alone. Feel free to contact me if you would like to discuss moving forward in a group or simply with greater accountability.

 

The group of guys (My Northpoint Men’s Leadership Group) that I attended with became a much closer Band of Brothers over the weekend.  If you aren’t familiar with the idea of a Band of Brothers, follow this link to David Robertson’s article, Band of Brothers. Personally, I am thankful to have them in my life.

Iron sharpens iron, and one man sharpens another. – Proverbs 27:17

 

As a group, we have adopted the rallying cry, Drive the Humvee! So, I’ll finish with this; We all have experiences, great ones and not so great ones in our past. In Christ, you are forgiven. Regardless of how wounded you may feel, it may be time for you to Drive the Humvee and Finish Well!