Best 46 quotes in «financial planning quotes» category

An investment is deemed an investment only through its returns." - On Investment

After all it is not what you make, it is what you keep or pass on.

Always prepare yourself for a financial emergency, even when you don't see a possibility of a rainy day in your future.

Business Owner Planning Business owners have additional and complex Retirement Planning needs. Counting only on the sale of your business requires tremendous luck and success. If business owners consider the business as simply one asset among many, then they should seriously consider additional assets such as: -Executive Bonus Arrangements -Nonqualified deferred compensation plans -Qualified retirement plans -General investment portfolio Motto for Business Owner Planning As I look back on thirteen years of entrepreneurship, I can see that the best and smartest thing to do is to have a plan with the end in mind and you in mind. The time still goes by and time is expensive. That sentence is really a whole book and you should or will understand sooner than later, hopefully. That would have looked like business succession planning. Proper business succession planning requires sound preparation in order to have a smooth and equitable transition. Financial, tax and legal planning are all necessary for a success.

At the young age of thirty-two, retirement is not much of a consideration, but when considering a thirty-year transaction it should be.

Collateral Capacity or Net Worth? If young Bill Gates had knocked on your door asking you to invest $10,000 in his new company, Microsoft, could you get your hands on the money? Collateral capacity is access to capital. Your net worth is irrelevant if you can’t access any of the money. Collateral capacity is my favorite wealth concept. It’s almost like having a Golden Goose! Collateral can help a borrower secure loans. It gives the lender the assurance that if the borrower defaults on the loan, the lender can repossess the collateral. For example, car loans are secured by cars, and mortgages are secured by homes. Your collateral capacity helps you to avoid or minimize unnecessary wealth transfers where possible, and accumulate an increasing pool of capital providing accessibility, control and uninterrupted compounding. It is the amount of money that you can access through collateralizing a loan against your money, allowing your money to continue earning interest and working for you. It’s very important to understand that accessibility, control and uninterrupted compounding are the key components of collateral capacity. It’s one thing to look good on paper, but when times get tough, assets that you can’t touch or can’t convert easily to cash, will do you little good. Three things affect your collateral capacity: ① The first is contributions into savings and investment accounts that you can access. It would be wise to keep feeding your Golden Goose. Often the lure of higher return potential also brings with it lack of liquidity. Make sure you maintain a good balance between long-term accounts and accounts that provide immediate liquidity and access. ② Second is the growth on the money from interest earned on the money you have in your account. Some assets earn compound interest and grow every year. Others either appreciate or depreciate. Some accounts could be worth a great deal but you have to sell or close them to access the money. That would be like killing your Golden Goose. Having access to money to make it through downtimes is an important factor in sustaining long-term growth. ③ Third is the reduction of any liens you may have against these accounts. As you pay off liens against your collateral positions, your collateral capacity will increase allowing you to access more capital in the future. The goose never quit laying golden eggs – uninterrupted compounding. Years ago, shortly after starting my first business, I laughed at a banker that told me I needed at least $25,000 in my business account in order to borrow $10,000. My business owner friends thought that was ridiculously funny too. We didn’t understand collateral capacity and quite a few other things about money.

Chase after money and the stuggering race will never end; but reach out for successful ideas and the sources of money will chase after you to fill your pockets.

Financial illiteracy is like being in a rain storm and trying to jump in between the raindrops... eventually it all catches you at the same time.

Far too many people are signing up to become slaves to their credit card companies.

Financial fitness is not pipe dream or a state of mind it's a reality if you are willing to pursue it and embrace it.

Debt means enslavement to the past, no matter how much you want to plan well for the future and live according to your own standards today. Unless you're free from the bondage of paying for your past, you can't responsibly live in the present and plan for the future.

Financial Freedom is less about Financials and more about FREEDOM

Focusing only on the short term puts us in a position to make bad choices. We ignore all other factors that lead to the overall value of the loan in order to achieve that one singular goal now—whether the goal is a lower payment, a lower interest rate, or a dream home. In the long term, this always proves to be costly.

Financial responsibility is a mindset before it is an action. Therefore, if you can change a mindset, the actions follow almost naturally.

Long term thinking and planing enhances short term decision making. Make sure you have a plan of your life in your hand, and that includes the financial plan and your mission.

Freedom and wealth is an outcome of “Time”; the most precious asset that we all possess. Time however is a variable to each individual as our actions from our choices determine the longevity and returns from this asset. To maximize the return on this asset is determined by the energy that we put forth in developing our financial education, relationships and health.

If you start working in your twenties and retire at age sixty you may spend as many years in retirement as you did working.

In life's journey, having the ability to predict the future gives us an unfair advantage. If we can understand the laws of cause and effect, anyone can predict the future. What we do today leads us to tomorrow's destination. Why does this simple truth seem to be difficult for most people to understand?

It's not what the price of gold is that matters, but rather how much stuff it will buy.

No one lends his entire fortune, not even to his best friend

Money does not dictate your lifestyle, it's what you do to get it and how you manage your finances that determines your lifestyle.

My Future Self My future self and I become closer and closer as time goes by. I must admit that I neglected and ignored her until she punched me in the gut, grabbed me by the hair and turned my butt around to introduce herself. Well, at least that’s what it felt like every time I left the convalescent hospital after doing skills training for a certification I needed to help me start my residential care business. I was going to be providing specialized, 24/7 residential care and supervising direct care staff for non-verbal, non-ambulatory adult men in diapers! I ran to the Red Cross and took the certified nurse assistant class so I would at least know something about the job I would soon be hiring people to do and to make sure my clients received the best care. The training facility was a Medicaid hospital. I would drive home in tears after seeing what happens when people are not able to afford long-term medical care and the government has to provide that care. But it was seeing all the “young” patients that brought me to tears. And I had thought that only the elderly lived like this in convalescent hospitals…. I am fortunate to have good health but this experience showed me that there is the unexpected. So I drove home each day in tears, promising God out loud, over and over again, that I would take care of my health and take care of my finances. That is how I met my future self. She was like, don’t let this be us girlfriend and stop crying! But, according to studies, we humans have a hard time empathizing with our future selves. Could you even imagine your 30 or 40 year old self when you were in elementary or even high school? It’s like picturing a stranger. This difficulty explains why some people tend to favor short-term or immediate gratification over long-term planning and savings. Take time to picture the life you want to live in 5 years, 10 years, and 40 years, and create an emotional connection to your future self. Visualize the things you enjoy doing now, and think of retirement saving and planning as a way to continue doing those things and even more. However, research shows that people who interacted with their future selves were more willing to improve savings. Just hit me over the head, why don’t you! I do understand that some people can’t even pay attention or aren’t even interested in putting money away for their financial future because they have so much going on and so little to work with that they feel like they can’t even listen to or have a conversation about money. But there are things you’re doing that are not helping your financial position and could be trouble. You could be moving in the wrong direction. The goal is to get out of debt, increase your collateral capacity, use your own money in the most efficient manner and make financial decisions that will move you forward instead of backwards. Also make sure you are getting answers specific to your financial situation instead of blindly guessing! Contact us. We will be happy to help!

Remember, buying something is not the problem. The problem comes when we believe, for that moment, that the object we’re buying is going to make us happy.

Retirement Lifestyle Planning There are four (4) major financial questions that you must be able to answer in order to know if your current or future plan will work for you. What rate of return do you have to earn on your savings and investment dollars to be able to retire at your current standard of living and have your money last through your life expectancy? How much do you need to save on a monthly or annual basis to be able to retire at your current standard of living and your money last your life expectancy? Doing what you are currently doing, how long will you have to work to be able to retire and live your current lifestyle till life expectancy? If you don’t do anything different than you are doing today, how much will you have to reduce your standard of livingat retirement for your money to last your life expectancy? Motto for Retirement Lifestyle Planning A solid financial plan is a powerful possession that offers a sense of peace and freedom. Our process allows us to determine appropriate strategies and help you understand how to achieve your goals and live your dreams. Our process stresses informed financial decision making. We encourage you to review all decisions with your team of tax and legal professionals. For the record, we are not tax or legal professionals and this information is not intended as tax or legal advice. Now we’d like to remind you that a well-executed financial plan requires diverse knowledge and utilizes some or all of the following strategies and services: -Retirement Lifestyle Planning Making the most of your employer-sponsored retirement plans and IRAs. Determining how much you need to retire comfortably. Managing assets before and during retirement including Social Security analysis. -Estate Planning Referring you to qualified Estate Attorneys to review your wills and trusts to help preserve your estate for your intended heirs by helping with beneficiary designations. Reducing exposure to estate taxes and probate costs. Coordinating with your tax and legal advisors. -Tax Management Helping to reduce your current and future tax burden by considering multiple strategies for review by your tax professional.Also, referring you to qualified tax specialists if needed. -Legacy Planning/Charitable Planning Creating a solid future for generations to come by ensuring that your legacy will live on through those you love or causes you care deeply about. -Risk Management Reviewing existing insurance policies. Recommending policy changes when appropriate. Finding the best policy for your individual wants and needs. -Investment Planning Determining your asset allocation needs. Helping you understand your risk tolerance. Recommending the appropriate investment vehicles to help you reach and exceed your goals.

Rich old people are more attractive than poor old people, so by all means, try to get rich before age sets in. Otherwise, you'll just be playing catch-up for the rest of your life and that will just wear you out, let me tell you.

Saving is a great habit but without investing and tracking, it just sleeps

Our primary objective in every mortgage transaction should be to borrow in a way that reduces debt, improves financial stability, and helps us get debt free in as short a time as possible!

Some take pains to be biblical, but many [Christian financial teachers, writers, investment counselors, and seminar leaders] simply parrot their secular colleagues. Other than beginning and ending with prayer, mentioning Christ, and sprinkling in some Bible verses, there's no fundamental difference. They reinforce people's materialist attitudes and lifestyles. They suggest a variety of profitable plans in which people can spend or stockpile the bulk of their resources. In short, to borrow a term from Jesus, some Christian financial experts are helping people to be the most successful 'rich fools' they can be.

The old Wall Street adage "never invest in anything that eats or needs repairs" may apply to racehorses, but it's mlarkey when it comes to houses.

That's why it's important to try to live in the present. The present is the only place we can live. When we live in the present, we are alert to what's actually happening -- to us and in the world at large. We can then act based on that awareness. And financial planning based on reality tends to lead to better results. By contrast, when we live in the future, we are lost in fantasy or fear. When we live in the past, we are lost in regret or nostalgia. Financial planning based on fantasy, fear, regret, and nostalgia is likely to lead to more of the same.

The ‘do nothing everything will be all right’ default plan is determined by the IRS and government.

Tax-Deferred does not mean Tax-Free It never ceases to amaze me when I meet with people who do not know that tax-deferred does not mean tax-free. You mean I have to pay taxes when I take this money!? This is not all mine!? These are common remarks I hear as we are looking at their most recent retirement account statement. Somehow this consideration was missed when they enrolled in the savings plan and each year when they postponed the tax when filing their tax return. I am not a tax professional but I can understand how an accountant or tax preparer wouldn’t think to make sure the client understands that they are postponing taxes and the tax calculation during their working years. I met an accountant that expressed how difficult it is when he gets the client that believed they were ready to leave work only to find out that because of taxes they are coming up a little or a lot short. This happened to one of my relatives that worked at least 30 years as an x-ray technician and then supervisor at a very large hospital. While working, they always had the nice houses, the nice cars, and a nice upper-middle class lifestyle, nothing fancy. After he retired and even though his wife still worked as a school principal, he had to take a sales clerk job at a nearby liquor store so that his family could maintain their lifestyle. I will never forget other relatives joking and laughing about him miscalculating his retirement. I’m certain that his unsuccessful retirement and that of other relatives influenced my interest in retirement planning if for no one else but me. With a limited amount of retirement income, most retirees would prefer to keep their dollars rather than give them to Uncle Sam. Even those with an unlimited source of funds don’t want to pay more taxes than necessary. Fortunately, there are some ways to decrease your tax burden once you’ve done the obvious work of ensuring you’ve taken all the deductions and credits to which you’re entitled when you file your taxes.

The struggle for Financial Freedom is very unfair. Just look at the rewards.

There will always be businesses and companies, trying to make money from you, but that’s not the problem. The real problem is that you’re feeding the Beast. You’re allowing him to run free and overpower your Angel, and that is reflected in your financial life. It’s the reason your paycheck comes and goes, and it makes prosperity impossible.

The secret of financial breakthroughs: Pay ten percent of any income you receive to God(tithe)and saving ten percent of your income as a payment for yourself.

This self-destructive behavior is becoming more and more mainstream in our society today, because we like to keep up with the Joneses. We don’t consider the fact that the Joneses’ kids are not going to the university, and they will not be able to retire in comfort. Life should be better than that.

Whether we make our own money or rely on someone else, many of us would rater pretend our financial matters don't exist. Or we hope they'll just take care of themselves somehow. My ex-husband was like that. He always said, "I bank by prayer. I go to the ATM and pray that money will come out.

Time, not money, is your biggest asset in life. You need time to invest in relationships (with yourself and your family) or to chase your passion. "Think again" if you are still trading off time for money. Let your money work for you. You don't work for money. That is exactly what Financial Freedom is...

We provide our clients with services they can count on. Our financial advisors can help you achieve financial independence.

When you decide you deserve to have what you want, you will wait on it.

When your kids have school summer holidays, and you can match your schedule to meet their time demands for the entire holiday period, that is your money at work for you - aka Financial Freedom

When it comes to compounding, don't trust your intuition - you have no idea how powerful it is.

Your future is always more valuable than today, the sooner you realise that the better

You do pay a price for your Financial Freedom, but it is far lesser than what you pay for a Lifetime Slavery.

You can always alter and adapt your plan, provided you have one.

Your Personal Economic Model One tool we use when discussing the best course of action to secure your financial future is the Personal Economic Model®. Just as a medical doctor would use an anatomical model to convey medical concepts, we use the following model to convey financial concepts. This model offers a visual representation of the way money flows through your hands. On the left, you will notice the Lifetime Capital Potential tank, which illustrates that the amount of money you will control during your lifetime is both large, as well as finite. Most people are shocked to see how much money can flow through their hands in their lifetime. Once earned, your money flows directly to the Tax Filter where the state and federal governments take tax dollars owed from your paycheck. The after tax dollars are then directed to either your Current Lifestyle or your Future Lifestyle. Your management of the Lifestyle Regulator determines where these dollars go. Regulating the cash flow between your current lifestyle desires and your future lifestyle requirements may be the most important financial decision you will ever make. Here’s why. Each and every dollar that is allowed to flow through to your Current Lifestyle is consumed and gone forever. The goal is to accumulate enough money in the Savings and Investment tanks so that when you retire, the dollars in those tanks can be used to pay for your future lifestyle requirements. Retirement planning seems hard for most people to do but it is not rocket science. The best position, position A, would be to have enough in the tanks so that you can live in the future like you live today adjusted for inflation and have your money last at least to your life expectancy. That’s a win, but the icing on the cake would be to accomplish that with little to no impact on your present standard of living, and that is exactly what we strive to help our clients to do. Working with us can help you with the following: Optimize the balance between your Current and Future Lifestyles Identify inefficiencies in your current personal economic model (where are you losing money) Design, implement, and execute a plan to secure your financial future Limit the impact on your Current Lifestyle dollars (maintain your current standard of living)