Have you ever been involved in a sport where the players dictate to the coach how the game is going to be played? Of course not, that would be chaos. Yet today with have families that are so scared of being ripped-off that they will not approach an advisor. Or when they do, they come with a coaching plan, they just need product X to solve problem Y. It may sound like this: “I need a 529 plan for college savings” (read: this is how you should execute this play), or “I need some term insurance, or “I don’t want xxx”. Yet we have a world today where most families are in a heap of financial trouble, or they are losing wealth they don’t even realize. They want to play coach instead of hiring a coach.

A coach guides, educates, disciplines, motivates and keeps the players focused on the end result, but it’s the player who needs to play the game. Today everybody can have a fly-by-advisor, just turn on the TV or radio and get all the free advice you can soak in. Typical financial advisors don’t get educated in wealth creation principles, but focus on saving and products. That’s not to say these products can’t increase wealth. However, don’t be confused with saving money versus creating wealth. If you are already a saver, a coach will move you to a wealth creator.

Accumulation phase:
For the average family, most advisors will setup a “plan” to help make sure your core bases are covered…Life, Health, Disability insurance. Next they satisfy your need “to save” for your kid’s education and retirement and advise you to use a 529 plan and max out your 401K only after you’ve paid off your house. They conclude that at 7% return (even though you’ve only earned 3% and don’t know why), you’ll have X amount of dollars at retirement. Of course it won’t be enough, but they will offer no wealth creation strategies, just a basic cookie-cutter plan.

Withdrawal phase:
For the retiree, in most cases they haven’t created excess wealth to live the lifestyle they want and feel safe. So the same advisors that didn’t offer any real wealth creation strategies and coaching, now recommends “safe” products that further rob people of real wealth creation.
It is a cycle that must be broken if you want to achieve true peace of mind and financial independence.

To see if you have been working with a planner versus a wealth creation coach, I have developed the “20 Must Know True/False Statements for Your Journey Toward Financial Peace of Mind”. When you feel completely comfortable answering these statements without hesitation, then you will be on your way to a high level of financial peace of mind.

It is a cycle that must be broken if you want to achieve true peace of mind and financial independence.

 

To see if you have been working with a planner versus a wealth creation coach, I have developed the “20 Must Know True/False Statements for Your Journey Toward Financial Peace of Mind”. When you feel completely comfortable answering these statements without hesitation, then you will be on your way to a high level of financial peace of mind.

  1. I use inflation to my advantage.  T/F
  2. I know how long I will have to work to be able to retire and live my current lifestyle till my life expectancy.  T/F
  3. It is always better to pay cash.  T/F
  4. A 15-year mortgage will save you more money over time than a 30–year mortgage.  T/F
  5. I am aware of the past wealth transfers that have, and future wealth transfers that will, deplete my private wealth and financial security.  T/F
  6. I understand the concept of opportunity cost.  T/F
  7. I am confident that if I don’t do anything different than what I am doing today, I will have the proper and desired standard of living during my retirement for my life expectancy.  T/F
  8. Saving for college is best using a 529 plan because it is tax-free earnings.  T/F
  9. I can always catch up my savings by investing more later.  T/F
  10. Over a 5 year period, earning:  +8% – 20% + 15% + 17% + 20 %, = 40/5year = 8%, is the same as earning 8% per year?  T/F
  11. If I pay $1,000 in taxes, it only costs me $1,000?  T/F
  12. I know the rate of returnI have to earn on my savings and investment dollars to be able to retire at my current standard of living and have your money last through your life expectancy?   T/F
  13. Using a 401K, IRA or ROTH IRA are always the best ways to save for retirement.  T/F
  14. I know how much I need to saveon a monthly or annual basis to be able to retire at my current standard of living and my money last till life expectancy?  T/F
  15. It is always better to defer taxes on income until retirement because I will be in lower tax bracket.  T/F
  16. I am confident my investments are getting the most return for the level of risk I am willing to take.  T/F
  17. A large down payment will save you more money over time that a small down payment.  T/F
  18. The interest rate is the main factor in determining the cost of a mortgage.  T/F
  19. I have control, liquidity, and potentially tax-free access of my money in case of life crisis.  T/F
  20. If there was a better way to increase my cash flow and net worth when I reached retirement I would want to know.  T/F