Financial planning is important, simply because financial issues affect our lives greatly. Unfortunately, there aren’t many classes available in our primary or secondary education that teach us about personal financial planning. So there is a need for financial literacy at all levels.
Dealing with financial issues is a process that lasts a lifetime. It is not a one-time event. No matter where we are in the cycle of life – just starting out, somewhere in the middle, or approaching retirement - we are always dealing with money issues.
Financial Planning is very broad in scope and can be dense with details, almost to the point of being overwhelming. Even the Internal Revenue Code is over 60,000 pages. The bad news is that financial issues can …show more content…
The foundational goals are defensive in nature while the lifestyle goals are offensive. You need both; however, the defensive strategies must be in place first. You can have the best offense in the world but if you have a poor defense, your offense could be at risk. Regardless of circumstances, strategies to manage finances involve both of these offensive and defensive tactics. Offensive tactics involve maximizing income, minimizing taxes, saving a portion of earnings, and maximizing cash flow and retirement accounts. Defensive tactics include protecting your ability to earn an income and preservation of the value of personal and investment assets. An analogy is the safety net that acrobats use in their high-wire circus performances. The trapeze acrobats may not need a net the first 99 times they perform, but on the 100th time when they fall, the safety net is in place to catch them, enabling them to climb right back up and continue performing. But if there are holes in the net, there is a chance of having a very bad result. Your financial defense system represents your safety …show more content…
After working for 30 years in the accounting and purchasing departments in a public school system in Louisiana, I started a new career as a financial planner. Upon completing all of my coursework with the College of Financial Planning, I realized that much of what I learned could have helped greatly if I had this knowledge while working in the school system. Although I did fairly well financially in my career, I could have done much better if I had a book like this when I first started my career. Instead of making a C+ or a B- on my financial report card I could have made an A if I had this information. Likewise, many of you are making passing grades financially; yet now you will have an opportunity to not just pass but rather excel in your financial life. Another aspect of financial planning that I came to realize is that public school system employees have some huge advantages that many in the private sector simply do not have. I will admit I took those advantages for granted. Although many topics in this book can apply to any employee, whether private or public, the subjects related to employee benefits are written from the standpoint of how teachers and support staff of school systems in general have some notable advantages. I believe very strongly that financial planners and advisors should be fiduciaries and not salesmen. This book has been
Dealing with financial issues is a process that lasts a lifetime. It is not a one-time event. No matter where we are in the cycle of life – just starting out, somewhere in the middle, or approaching retirement - we are always dealing with money issues.
Financial Planning is very broad in scope and can be dense with details, almost to the point of being overwhelming. Even the Internal Revenue Code is over 60,000 pages. The bad news is that financial issues can …show more content…
The foundational goals are defensive in nature while the lifestyle goals are offensive. You need both; however, the defensive strategies must be in place first. You can have the best offense in the world but if you have a poor defense, your offense could be at risk. Regardless of circumstances, strategies to manage finances involve both of these offensive and defensive tactics. Offensive tactics involve maximizing income, minimizing taxes, saving a portion of earnings, and maximizing cash flow and retirement accounts. Defensive tactics include protecting your ability to earn an income and preservation of the value of personal and investment assets. An analogy is the safety net that acrobats use in their high-wire circus performances. The trapeze acrobats may not need a net the first 99 times they perform, but on the 100th time when they fall, the safety net is in place to catch them, enabling them to climb right back up and continue performing. But if there are holes in the net, there is a chance of having a very bad result. Your financial defense system represents your safety …show more content…
After working for 30 years in the accounting and purchasing departments in a public school system in Louisiana, I started a new career as a financial planner. Upon completing all of my coursework with the College of Financial Planning, I realized that much of what I learned could have helped greatly if I had this knowledge while working in the school system. Although I did fairly well financially in my career, I could have done much better if I had a book like this when I first started my career. Instead of making a C+ or a B- on my financial report card I could have made an A if I had this information. Likewise, many of you are making passing grades financially; yet now you will have an opportunity to not just pass but rather excel in your financial life. Another aspect of financial planning that I came to realize is that public school system employees have some huge advantages that many in the private sector simply do not have. I will admit I took those advantages for granted. Although many topics in this book can apply to any employee, whether private or public, the subjects related to employee benefits are written from the standpoint of how teachers and support staff of school systems in general have some notable advantages. I believe very strongly that financial planners and advisors should be fiduciaries and not salesmen. This book has been