Practical Wealth
The road to wealth should be a well-planned, methodical journey. Building a solid financial foundation requires both skillful planning and time. Anyone seeking to secure his or her financial future must ensure that diversification across a broad array of business markets is a crucial part of the investment strategy. In my book “Beyond Ordinary: Success is Only a Thought Away” I discussed one of the techniques for accumulating wealth by throwing some of the money you make today into your tomorrow by placing portions of it in any number of investment vehicles. You may choose to invest small amounts of your income in an annuity, mutual funds, stocks and bonds, certificates of deposit, IRA's, and/or a 401K plan. If you follow your plan consistently over a period of time, you will be amazed at how quickly your money will grow. The point is that you must utilize time to your advantage by implementing a well thought out investment plan immediately.
As we march toward our golden years, nothing can bring a greater sense of peace to the soul than knowing that in our youth we were wise enough to cast some of today's money into our tomorrow. It's a good feeling just knowing that, in your retirement years, your standard of living will not be left to chance. And it's an even better feeling to be in control of how and when you get to that momentous day of retirement.
Many individuals who have wisely invested for their future look forward to the day when they can finally retire. Yet the closer they get, the more they wonder how they are going to manage their money so that it will last from that point on. There are many different types of investment vehicles available to investors that would enable them to fund their retirements. If chosen wisely, these plans can provide multiple income streams that will more than replace most incomes. But is retirement your main interest now or is building wealth your primary concern. If you are under forty years of age, you are perhaps helplessly in love with living life to its fullest. If you are over the age of forty, then I am certain that you have already begun to take life more seriously as you are now more aware that time is of the essence.
In the early eighties I sold insurance and investments. Oftentimes I would help my clients by performing a financial needs and risk analysis to show them, in black and white, where they were in terms of their insurance coverage and assets. Once the analysis was completed, I would then outline the steps that they needed to take in order to achieve their financial objectives. Financial planning is the process of wisely managing your finances so that you can achieve your dreams and goals, while at the same time helping you negotiate the financial barriers that inevitably arise in every stage of life. Managing your personal finances is ultimately your responsibility. However, you don't have to do it alone. A financial planner can help you make decisions that will enable you to make the most of your financial resources.
Since I have been taking flying lessons, I have been able to use my flying experience to draw analogies between flying and financial planning. Financial Planners are like the Cessna planes in which many inexperienced flyers must take their lessons. The Cessna 150 is designed to make flying easy. If, while flying, a pilot ever has the unfortunate encounter of experiencing vertigo, the trained response is to let go of the controls and allow the plane to correct itself. The problem, however, is that some pilots cannot find it within themselves to trust the plane's instrument panel. When a Cessna plane crashes, it is more often than not the result of the pilot's unwillingness to release the controls and trust the instrumentation. Financial planners are like the instrument panels of the Cessna. As the pilot of your own destiny, you must trust that a good financial planner can help steer you to your financial destination if you would adhere to their advice.
