Learn about the forgotten little things or hidden gems in your life and financial life. Along with understanding what your biggest assets are and how to weave them into your financial plan.

Main Questions Asked:

• What are some of the overlooked financial hidden gems in your life?
• What are your biggest assets?

Key Lessons Learned:

Your Biggest Assets

• A bunch of little assets added all together. Someone could have a 401k, along with a bunch of smaller accounts. When you add them up they might be bigger than your existing 401k or a significant amount of money. We simplify accounts and get them all into one place.
• It’s your future savings potential. The younger you are the more important this situation is. Your biggest asset can be your future earning potential. This is why disability insurance is so important. This is a type of insurance that protects your ability to go out and earn an income. Your future saving potential could be huge. Future savings may be your biggest asset.
• Social Security. For some people this is their biggest asset. I have been on Channel 3 news talking about this. People don’t think of the value over their life expectancy. For me, it is well over $400,000 for my age and life expectancy. It is so important to look at it as an asset over the course of your lifetime. Put thought into claiming benefits and treat it like a valuable asset.
• The house, especially if it is paid off. For people thinking about downsizing or moving they can pocket money to make an equal move out of state. This is a significant asset. This is something to consider as part of a financial plan. This could be a large asset.
• Your 401k. A lot of people aren’t paying the attention to their 401k that they should. If you are picking the best performing funds over a certain amount of time, you are almost guaranteed they will become the worst performers. You have to treat it like a big asset and build an investment plan. Don’t choose the cheapest funds or for the short term.

Hidden Gems

• Pension Fund. This could be a valuable piece of your retirement puzzle. This money could be sitting in a lump sum somewhere. If you can roll it out to another account you would be better off. This could be a great opportunity right now to roll it into an IRA and take control of the money.
• CDs, savings accounts, and money market accounts. A lot of people have money sitting on the sidelines. Prudent investors know they don’t want to invest at the top of the market. I wouldn’t have it all at the bank earning zero interest. Banks are for emergency savings. Money can pile up and become cash that is collecting dust without a proper plan.
• Life insurance. An older policy that you have had for years could be a powerful asset. You can take a cash value of a policy and turn it into a 5 or 10 year income. Many times the income interest rates you can get from old whole life or cash value policies are much higher than you can currently get today, because of the old actuarial tables. Don’t ignore old life insurance policies.
• Old 401Ks. It makes sense to take this money with you when you leave the company. Roll it over into your own IRA and take control of it. You might have flexibility even if you are still with the company. You need a good advisor that will help you make the best decisions.

Links To Resources Mentioned

Money Map Retirement Review

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Thank you for listening!