It’s hard to believe that we are already at that time of year when we celebrate the Fourth of July. It’s a time when our nation clamed independence. I can only imagine the sure focus and determination of the men and women that night. Yet, for all of us at times and for many people right now with the rocky economy, independence seems lost. Some even feel they have lost control, are overwhelmed and wonder how to get their financial house in order. So if it is a job loss, the stock market has had an effect on your nest egg or a recent life change has occurred, claim back your financial independence by using these four words: clarify, simplify, multiply, and maximize.

n Clarify exactly where you stand today. Take an inventory of assets, insurances and liabilities, both currently and where you want to be. Make a list of what financial goals are important. Expand upon each of those goals. For example, saying “having enough money” may be important, but go a step further and then write why that is important, and so on until you clearly describe the goal. Go far and dream big dreams. We recommend that if you’re in a relationship, both partners complete this exercise of writing financial goals down on their own because wishes and goals can vary from one person to another. Don’t try to answer for each other, either. Then review your financial goals together.

n Simplify the list into various specific financial areas. Commonly, people will focus on three major issues: managing money, protection and legal planning. The list may be longer, but it’s all based upon what is important to you. In working with retirees we use a form called Wealth Management Issues, which reviews 16 different areas of finances. Then prioritize the list and focus first on completing the most important and then work your way down the list. Set target dates when the goal should be accomplished by.

n Multiply what the total results would be when all of the goals are completed. A person wanting to save on taxes and other financial expenses, earning more money and leaving more to family sounds great. But imagine how powerful it would be once it was all added up and the end result was determined. An investor who had a total combined goal of $16,600 by working to save $2,000 in taxes, $600 in insurance expenses, $1,000 in financial fees, $8,000 in probate costs, and earn $5,000 more by Dec. 31st, 2009 would be much more motivated and likely to reach the goals. Even if this person wasn’t able to complete each and every goal and only got 70 percent completed, the results will still be fantastic.

n Results tend to be maximized once a plan gets implemented. Ever notice how some people always seem lucky and everything is working in their favor? Is it really luck? Leave luck for a trip to Las Vegas, but don’t leave the results of personal financial affairs to luck. More often than not, these “lucky” people are simply people who know exactly what they want and they take action. This type of effect can happen when things start to move in the right direction. Imagine not only the financial, but the physical and emotional positive compound effect it would have by getting control back, moving in the right direction and seeing the results. It may help to maximize your entire life.

The only commodity in life one cannot duplicate is time. Often we feel so overwhelmed with the day-to-day noise that we lose sight of what we want. These distractions are what we call rabbit chases. And the only people who should be off on rabbit chases are hunters. Turn off the noise and clarify, simplify, multiply and maximize so you can get back to doing what’s important to you. To get started, get your complimentary copy of The Wealth Management Issues form online at www.retirementguysradio.com.

For more information about The Retirement Guys, tune in every Saturday at noon on 1230 WCWA and every Sunday at 11 a.m. on 1370 WSPD or visit www.retirementguysradio.com. Securities are offered through NEXT Financial Group Inc., Member FINRA / SIPC. The Retirement Guys are not an affiliate of NEXT Financial Group. The office is at 1700 Woodlands Drive, Suite 100, Maumee, OH 43537.

This entry was posted on Friday, July 3rd, 2009 at 12:00 am and is filed under Retirement Guys, Toledo Business Link.
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