What Do You Want Your Money To Do For You?

The Science of Simplicity

In the early nineteenth century, William of Occam proposed a rule for science and philosophy alike that reads something like this: If there are competing explanations or theories for a given phenomenon, the simplest one tends to be the best. This rule of preferring simplicity became known as Occam’s Razor. Staying true to the spirit of this principle, we reduce the exercise of putting your financial house in order to one central theme. That central theme is simplicity.

Asking the tough questions before tragic events happen.

Why is it human nature for us to wait until a tragic event happens in our lives before we create a plan to solve such critical problems? Take a few minutes and honestly answer the next 5 questions (under each question is a series of follow-up questions to help you think through each life event that could happen). Answer these tough questions now so that you don’t find yourself in the middle of a tragedy financially looking for answers. Once you’ve answered the questions, set up a plan that addresses each one. That’s where we can help. We can help walk you through these tough questions and help create a customized plan that makes sense for you and your family.

Well-known financial planning expert Van Mueller suggests that to create a properly structured financial plan, you must start by answering the following five critical questions:

1. What do you want to happen when you die?
2. What do you want to happen when you become disabled?
3. Do you want to be rich OR do you absolutely positively without fail want to be guaranteed not to be poor?
4. How do you want to live during your retirement?
5. What legacy do you want to leave to those you love?

Van Mueller also recommends you look at each question in more detail since each question bring up additional questions.

1. What do you want to happen when you die?

a. If you die early, do you want your spouse and children to struggle not only emotionally, but financially as well to pay the debts you left them?
b. Do you want your spouse and kids to be forced to move because they cannot afford to live in the home you worked so hard to provide for your family?
c. Do you want to force your spouse to remarry quickly after you pass away just to have your family’s financial needs taken care of?
d. Do you not want your children to be able to reach their dreams of a college education because they are forced to work and do not have time to study or go to college because of the financial burden you left them?

2. What do you want to have happen when you become disabled?

a. Do you want your spouse to go back to work?
b. Do you want to lose your home?
c. Do you want to sell all of your hard-earned assets to pay medial costs?
d. Do you want to have to go back to work doing something you hate because you are forced to work despite the pain you are suffering?

3. Do you want to be rich? Or do you absolutely positively without fail want to be guaranteed not to be poor?

a. What risks are you comfortable taking with your money?
b. If you lost all of your money by investing in a get rich quick scheme, how would you recover?
c. Do you believe you can win by not losing?
d. Would you be happy with a 4-5% annual return with the guarantee to not lose any money?

4. How do you want to live your retirement?

a. Do you want to have to lower your standard of living?
b. Do you want to be forced to move because you cannot afford your home anymore?
c. Do you want to have to worry about having more month than money?
d. Do you want to be financially dependent on the government to tell you how to live because that is your only source of income?
e. Do you want to have to choose between food or medication due to lack of money?
f. Do you want to tell your kids and grandkids you cannot come visit them because you do not have enough money to travel?

5. What legacy do you want to leave to those your love?

a. Do you have a will or trust? Do you have an estate plan?
b. Do you want the nursing home to get all of your money?
c. Do you want the IRS to get all of your money because you did not plan correctly?
d. Do you want attorneys to get all of your money because your beneficiaries are squabbling about how they think you would have wanted the money divided?
e. Do you want to control what happens to your money from the grave so you can help your children and grandchildren remember you the way you want to be remembered?
f. Do you want your legacy to be passed on to generations like Carnegie and Ford?
g. Do you want to have your money support charities and causes that you believe will make a difference in this world?

We know this is a lot to think about, but answering these questions is the key to simplifying the process of understanding your money and building your own system of security. Forget about the get rich quick schemes, the high risk investments and the greed that drives people to make poor decisions with their money, and focus on what matters most in life when it comes to your money.

Give us a call at 801-990-5055 if we can be of any assistance to you in helping put a plan in place to help answer some of these questions.

Our firm assists retirees and pre-retirees in the creation of retirement strategies utilizing investment and insurance products. Advisory services offered through B.O.S.S. Retirement Advisors, a Registered Investment Advisory firm, and offered through Global Financial Private Capital, LLC, an SEC Registered Investment Advisor. Insurance products and services offered through B.O.S.S. Retirement Solutions. To see a list of services please visit us at bossretirement.com/services or call us at 801-990-5055.

This content is provided for informational purposes only. It is provided by third parties and has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.