Wealth Objectives

Do you have any Wealth Objectives? (LOL, go ahead… insert the jokes here!)


I say that because recent economic times have caused many people to question, worry, and even try to forget or ignore what’s going on within their financial plans. Please read on and hear me out on this! If you want to bring stability back to your financial future, you must make choices now that will lead you there. If financial peace for you is on the other side of the lake, but the wind isn’t at your back, you’ve got to pull out the oars and start to paddle. (For more on this idea, read my earlier post about Greek War Ships.) In financial terms, this means we must have the right plan in place. The right plan is one that works to move us in the direction we want to go even when economic winds aren’t being friendly. But how do we measure each individual step and ensure that we end up where we want to go? The answer is found within clearly defined Wealth Objectives.


At my financial firm, we use four very specific Wealth Objectives that work to shape every recommendation we make to clients within our Financial Planning process:


1) EFFICIENT: This means we must limit waste or excessive costs, while at the same time maximize the potential of each and every dollar. In other words, put one dollar in a position to do the work of three or four.
2) ENJOYMENT: Financial people rarely discuss enjoyment. Why is that? It’s your money! I see so many plans that have been structured for limited use and enjoyment. Simply put, less money equals less fun both today and in the future.
3) ESTABLISH A FINANCIAL LEGACY: Leave behind the maximum amount possible! It’s been said, “You can’t take it with you”! Provide a legacy for those behind you! Don’t just be a taker!
4) EFFECTIVE: We can’t fail on this one. The fact is your hopes and dreams don’t vanish just because your mutual fund did not produce the annual 12% return Dave or Clark said it would! WHAT IF… inflation is higher than planned for? WHAT IF… taxes go up? The bottom line is that things are going to change! We must build in the redundancies that allow us to adapt to these changes! That way, we can continue moving forward, even when the financial winds aren’t at our back!



So again I ask, “What are your Wealth Objectives?” Like most people, you probably don’t have any. That’s why you feel like you’re aimlessly lost at sea, just hoping things will somehow work themselves out.


I would encourage you to measure your current strategies and all future financial decisions using clearly defined objectives. You’ll find it helps to have a Macro Economic model serve as a verification tool, or perhaps operate like a financial laboratory. In the lab, when we test a recommendation, if it fails to meet any one of our Wealth Objectives, we throw it out. If it passes, we work with our clients to investigate them further.


So, do you have specific financial goals? What are they? How do you plan on reaching them? What Wealth Objectives have you put in place to measure the validity of each step that will lead you where you want to go?

Reply with your thoughts!


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