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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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Smart Money Moves 401k

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.