Know Money or No Money?

Do you feel you are on the right track financially? Are you prepared for retirement? Is your nest egg where it should be? Has the economy had a negative impact on your financial household? Do you need to earn more money?

Many people feel they need to follow a specific “road” to financial security, financial freedom, or today, just financial survival. When you follow a road, designed by someone else, all you do is travel towards someone else’s perceived goals. I want to challenge you to change your perception and view your financial household as just that, a building that you must construct, with the proper tools.

You can’t build your home while you’re driving away from it, now can you? To achieve true financial success and accomplish your financial goals, you must build your financial household upon a strong foundation. I had a rare opportunity in my life to switch careers and work in the financial services industry. My background did not make me an ideal candidate for selling financial products. I was a former Marine, working in the entertainment industry. But, my circumstances made my career change a necessity.

Ten months after my marriage, my wife was diagnosed with cancer. I earned a handful of licenses and started my new career in the financial services industry, so I could put food on the table and have enough time to be her caregiver. Through the course of my financial career, I was fortunate to attend detailed training on virtually every financial service and product available. After meeting with hundreds of clients and speaking to thousands of people, I realized that most people would build a more-secure financial household if they truly understood the financial tools in their toolbox.

I discovered that people had a lack of understanding about the financial tools available to them for at least one of the following three reasons:

1. People did not seek professional guidance
2. Their “professional” representatives were not licensed to sell every tool
3. Their “professional” representatives failed to show them all of the tools because they made more money selling specific tools

If I can share one piece of advice regarding financial services, it would be this: there are no bad financial tools. They just all work differently. You wouldn’t use a screwdriver to put a nail in the wall, would you? You may get the nail in, but there is a better tool for the job. By the way, using the screwdriver in the wrong way doesn’t make it a bad tool, does it? No, it just means that there is a more effective tool for the job. Your financial tools work the same way. They all have Pros & Cons – none are perfect. If it sounds too good to be true… well, you know the rest!

Take a look at your financial services, both what you currently have, and what you need to have. Do you have the right type of mortgage and the right life insurance policy? Will your 401(k) get you to retirement? How much of it will go to Uncle Sam. When you pay off your home, will it affect your taxable income at retirement?

Are your financial tools working together to help you hit your goals? Feel free to leave comments and questions regarding your financial tool. Let’s get the tools in Your Financial Toolbox™ working together.