You probably know the expression “You can lead a horse to water, but you can’t make it drink”.
Would it surprise you if I told you that I’ve found this to be true, in particular for people I meet who want to create wealth for their future, but never quite get started because life always seems to get in the way?
You might have heard it all before, but have you made plans for a wealthy retirement? With a plan in writing in detail, not just some good intentions?
What I mean is, are you going to have the money to spend some time in a Caribbean resort or on a world cruise when you retire? Even if that’s not your thing, I am sure you would like to have a bit more in the kitty to spend on something you’ve dreamed of for a long time.
Here are some sobering facts to consider: The average Super account balance in 2009-10 was $71,645 for men and $40,475 for women (not including their own home). To live comfortably, a single retiree needs about $780 per week ($40,410 per year), while a couple would need $1,060 per week ($55,300 per year). That doesn’t yet include a luxury holiday or something else that could be special to you. If your super fund is at similar levels, know that you CAN do something about it.
It has become clear to me, that there is a lot of confusion out there in the investor world. People commonly believe they can’t become financially independent, or they believe investing is only for people with money, or you will lose money if you invest (because that’s been their experience). Nothing can be further from the truth. There are ways for everyone to embark on the process of building wealth, with greatly reduced risks, no matter what age they are when they get started.
Introducing the New Wealth Planning Formula
A formula is a proven, scientific process. Wealth Planning is a scientific process whereby numbers are used to clarify investment decisions, before those decisions are made.
After extensive research a powerful software program exclusive to the financial planning industry has become the foundation for a new breakthrough service for determining accurate investment decisions.
The Wealth Plan takes into consideration your current financial commitments, your goals and aspirations and your current assets and liabilities. This is always the starting point.
The Wealth Planning Process
Wealth Planning follows a proven process to not only create wealth, but also to provide financial security along the journey. What’s the point of making it if you lose it?
Most people don’t know what they don’t know, when it comes to finance. They are not aware that creating wealth requires understanding of 4 specific ingredients:
- Cash – (savings & loan serviceability)
- Capital – (equity) for deposits/purchases
- Planning for wealth
- Yourself (mindset, beliefs)
Which one do you think prevents wealth accumulation the most? I can state unequivocally, it’s the 4th ingredient closely followed by the 3rd ingredient.
Mindset is a vague subject and not easily understood. Look at entrepreneurs, their mindset is one that sees opportunities where everyone else sees risk. This is a simple, yet accurate example of mindset.
The best way to understand mindset and effective wealth planning is to have fun while you learn – with zero risk. For example, playing CASHFLOW (invented by Robert Kyosaki) allows you to learn more about how you can grow wealth – at zero risk! The game teaches powerful experiences about mindset while you’re having fun with other people who play with you – 3 to 6 to a game at one time. The good news is, the planning process directly applies to using the strategies you learn in the game to real life scenarios.
Numbers – don’t – lie!
There’s more power in that statement than you may imagine. Over the years I have seen hundreds of people struggle with money. I’ve also met people with very high salaries who have no idea how to create wealth. My mission is to help you prevent that struggle, not just short term but into the future. The way to achieve that is with careful, professional use of numbers in planning.
Too many people get caught up in the emotion of investing, that’s why they have expensive “learning experiences”. The majority of investors have very little financial knowledge when it comes to investing and don’t pay for any advice. They retire with very little in net assets despite all their good intentions.
It is so important that you’ve got something to look forward to when you start going on your journey to build your financial future. To give you good insights into the journey of building your financial future, click here to get instant access to our popular Financial Independence Kit. It includes some great tools we use in our Wealth Planning process, and they are free.
From here I suggest you get help from a Professional to help you interpret your figures and develop a Wealth Plan to suit your goals. It’s best to find a team who can provide a comprehensive service, a team who have access to trusted professionals like investment brokers, insurance and mortgage brokers, superannuation experts, property experts and legal advisers.
The truth is that wealth is built on solid foundations with careful analysis. It’s a step by step process and works like this:
- learn what to do to create wealth
- do a stock take of your current financial situation and develop a budget
- get professional help from a team you trust and who educate you, not just advise you
- apply what you’ve learned using their expertise, when you build your Wealth Plan
To give you an idea how this could work in reality, here’s what our professional Wealth Planning Service includes…
- A personal insurance review (if you stop work and have no insurance, your financial goals just went out the window!)
- A structured review of your asset protection
- Cash flow balancing and analysis– how to get control of your money now, to free up more cash. YES – everyone can do this, it’s never how much you earn that’s the problem… it’s what you spend!
- Where you are right now with your Net Cash Position and Net Asset Position and exactly what your financial future looks like if you do nothing from here on in
- Your equity position – to determine what you can borrow to invest right now
- Your Wealth Plan – with your preferred vehicle of investment included, be that shares, property or business acquisitions, growth and sales. All types of investments can be built into the Plan using our powerful software. You get a full report outlining your 5, 10 and 15 year asset and cash flow positions as part of your Wealth Plan.
- Ongoing reviews of your Cash and Asset position twice a year – to create accountability so you stick to your goals and get an accurate update from changing market conditions.
At Straight Money Talk, we also offer a “Free Financial Health Check” — an informal, no obligation chat about your finances. From there you can get into Strategy Sessions for a small investment, plus you will receive a free copy of the book “Straight Money Talk” to help you increase your understanding of your journey to financial independence. That’s a pretty good start for anyone who is serious about building their financial future. Click here to find out more about what we do at Straight Money Talk.
Copyright © 2013 Robert Bauman
Disclaimer: The information (including taxation) on this site is general in nature, for Australian residents only and does not consider your individual circumstances or needs. Do not act until you seek professional advice and consider a Product Disclosure Statement.