What do you need in a financial plan for it to be successful? We go over the details in this episode and why it is important for you to have one. Things happen all the time in life, but with a solid financial plan, it can help you push through challenges.

Setting the Foundation for Financial Planning

1. Starting off, Kurt explains how he structures a financial plan when clients come into his office saying they do not have one. When creating a plan, he always goes over these details with his clients:
2. Financial goals
3. Needed documents
4. Partner agreement
5. The biggest detail he never skips is their financial flexibility. You never know when the money you are saving will go toward a major expense.
6. In the words of Mike Tyson, everyone has a plan until they get punched in the face. So what are you going to do when your savings goes toward an unexpected medical expense or a new water heater?

Base Essentials: Savings, Insurance, Legal Documents

1. A financial plan needs a solid foundation for you to build on. Start with savings of six months to a year of cash reserves so you have support in case of emergencies.
2. Also, make sure it is actual cash, not credit or loans. In a financial crisis, credit can dry up, but cash will not.
3. Next, you will need basic insurance, including disability and medical coverage. These policies help protect against life’s core risks if they occur.
4. For legal documents, include wills and trusts for you and your spouse. It is also best to maintain a single page document listing all accounts and where they are held. This way, your loved ones can easily find essential information if needed.

Managing Credit and Debt

1. With a good credit score, everything comes together more smoothly financially. It is important to use credit as a tool, not a burden.
2. Wouldn’t it be nice to go anywhere and not have to put anything down and pay zero interest? Then focus on paying off any debt you have and building your credit score.

Investment Strategies and Diversification

1. If you have not already started developing your retirement plan or investing for retirement, there are plenty of options available for this stage of life.
2. Mark even chimed in about how he started investing in crypto, coins, precious metals, and real estate, all of which can support him in his later years when he no longer wants to work.
3. Another point Mark highlights is the importance of diversification. You do not want to invest everything in one place. It is important to have several investments in case one does not perform as planned.
4. Lastly, do not forget that health is wealth. Invest in yourself so you can continue living a long, healthy life. Take care of your emotional, mental, spiritual, and physical health. Do not look at investing as only a way to make money.

“Retirement is wonderful, but don’t focus too much on it. Think about how you want to live your life and what you want to do. Hopefully, you have goals and passions beyond retiring, because retirement alone can feel like the end of life.” — Kurt Tucker

Resource

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Credits

Produced by bluëmango | STUDIOS. Music by SoundsStripe. Thank you for listening!