Archives For Financial Planning

Congratulations to Robert Kiyosaki on reaching the 20th anniversary of his revolutionary book Rich Dad Poor Dad. Certainly myself and all of our clients have benefited from the wisdom within this book!

 

Kiyosaki Congratulations Opening Image

 

If you haven’t had the chance to read the book; Clearly I would recommend this as a first step in your Financial Education. If you aren’t a reader, Robert and The Rich Dad Companies have created numerous avenues for you to learn. You may want to purchase some of the videos or even a Board Game, Cash Flow and Cash Flow for Kids as other ways to learn from his valuable insight.

You can follow this link to a Blog Series that I wrote years ago highlighting some of what I learned from the original Rich Dad Poor Dad book. Visit YouTube to watch my personal Thank You message to Robert and Kim for this book and congratulating them on their years of success.

If you are looking for someone to work directly with on coaching you through some of these concepts in Real Estate Investing and/or Personal Financial Planning feel free to reach out to me directly, connect through social media channels in the sidebar, or visit Drive Planning On-Line.

5 Questions about life ins TB

 

As we approach Life Insurance Awareness Month in September (Yes, and only financial geeks like me know that September is LI Awareness Month), I thought I would provide some framework for you to re-think or examine your own life insurance plans.

Life Insurance can be confusing. Not to mention the pressure of an agent trying to get you to make a purchase…… any purchase. So, as you consider your own life insurance plan here are 5 questions that you should ask regarding yourself regarding your personal policy. If these questions can’t be answered or aren’t answered satisfactorily then you should consult an experienced financial planner to ensure that your plan is a fit for your family and your personal situation.

 

1) Do I have the right amount of coverage?

 

We believe that each person should have their Full Economic Value in life insurance Death Benefit. The calculation to determine your Economic Value is:

Your Annual Income  X   # of working years remaining   =   Your Economic Value

This may vary as you approach retirement. At retirement point the death benefit should equal your estate size. Other planning caveats are for non-working spouses (all spouses work however all do not receive an outside paycheck for their hard work). In this scenario, consider the cost to hire someone to perform the duties they perform as the appropriate amount.

 

2) Will my insurance expire without value?

 

Some types of coverage like term coverage are designed to end without value regardless of whether the insured is still alive. Other types can lose value and leave a large surprise to the insured when they realize that they have paid in to a plan that is being canceled or needs unexpected additional funding.

 

3) Is my life insurance coordinated with my retirement plan?

 

This one can get tricky. In order to receive the highest amount of retirement income it is wise to create a coordinated retirement and life insurance plan. This coordination will allow for income to be received with the best possible tax treatment without fear of running out of money during retirement. This level of coordination is best designed with your financial planner who is well versed in retirement and insurance planning.

 

4) Does my life insurance have a clause for Disability?

 

Many insurance agents often overlook this feature in their zeal to make a sale. An educated consumer will always want a life insurance plan that protects them from disability. This means that if the insured were to become sick, hurt or unable to work the insurance premiums would be made on their behalf by the insurance company. This isn’t a reason to not own proper disability insurance, but simply helps to make sure that life insurance premiums do not have to cut due to the loss of income or additional expenses of a disability.

 

5) Does my life insurance have living benefits? Specifically benefits like Long Term Care or Chronic Illness benefits.

 

These are features within life insurance policies are newer to the market place and all companies have not adopted them at this point. However, I personally wouldn’t recommend a policy without them in today’s market place. Including these benefits can often times be added with little or no additional premium and potentially save big money down the road.  It is often advisable to choose multiple policies with and without this feature due to how they are treated when/if they are ever utilized for this purpose. This feature can be added to many term or permanent policies.

 

Hopefully these questions have provided the framework for you to begin examining your own life insurance strategy. As you can see life insurance is an integral part of any financial plan. It is advisable to work with a professional to determine the appropriate approach for you and your family. Be careful when talking to an insurance agent who only works for one company or doesn’t specialize in coordinating this with a financial plan. They may be limited by the choices which they can offer.

 

If we can help with this conversation or if you simply want to learn more about Drive Planning connect with us on-line or in person.

Call or Text me at 404-429-4132 or connect on-line with me via Twitter, LinkedIn or Facebook

Getting Started Todd Burkhalter

 

It is often said, all is well that ends well. Or you may have heard the phrase, Finish Strong. If you are a Georgia Bulldog fan you will recognize, Finish the Drill. Each of these sayings are focused on the importance of finishing. Finishing well is absolutely important. I have seen a number of times when businesses or people get started and have no follow through or patience to see it through, resulting in failure. I agree that finishing well is important but you can’t finish well if you never get started.

 

John Maxwell says that Getting Started is the main step to Success. If this is the main step in the success process why do so many people struggle with getting started? Here are a few reasons why:

  • Complacency
  • Fear
  • Not knowing enough details
  • Lack of Focus
  • Lack of Clarity
  • Focused solely on small details
  • Lack of funding
  • Lack of Vision

I want to encourage you to get started on your dream and living the life that God desires for you. This certainly isn’t a permission slip for irresponsibility, however a nudge towards making that decision that you know is the right one. Formulate a big vision, a clear plan and surround yourself with the proper people and get started. These steps will alleviate the most problematic items from the list above allowing you to begin and finish well. Author of Intentional Living, Michael Hyatt, is one of my favorite leadership experts. I quote Michael often by stating, with action comes clarity. This statement has proven true many times on projects and business ventures in which I have been involved. Once you begin you start finding your way.

 

 

Hyatt quote

 

 

What is your desire? Tell us on Facebook, twitter or LinkedIn about the dream that you want to begin living. Let me know if we can assist you in the planning or execution of your dream.