| Wealth Creation has been the goal of many people | | | | Get proper general insurance coverage |
| throughout history and since the 2008 globalfinancial | | | | There are other risks – for example fire, theft, |
| meltdown, this goal is even more importanttoday. | | | | flood – that people face with respect to their |
| "Buying a home, saving for retirement or for children's | | | | physical assets. The best way to mitigate these |
| education or even effectively managing the family | | | | risks is to have proper general insurance coverage. |
| budget requires more financial sophistication than | | | | This allows a person to quickly regain the use of |
| ever before. Financially literate consumers make the | | | | these assets while not risk reducing their net worth |
| financial marketplace work better, and they are | | | | because of unexpected disasters. |
| better informed citizens as well," Ben S. Bernanke, | | | | Pay yourself first |
| Chairman, Federal Reserve System. | | | | Many of us ensure that our bill and other financial |
| Amongst my clientele I have found that the | | | | commitments are taken care of in a timely manner |
| wealthiest have adhered to timeless, disciplinedand | | | | but neglect the fundamental principle of paying |
| sustainable principles of wealth creation. I am happy | | | | ourselves.If one is to create wealth it is critical to pay |
| to share some of these with you: | | | | your self first. During our working life, if we estimate |
| | | | | 35 years, with an average annual income of $60,000 |
| Set a Goal | | | | a person would have earned $2.1 million. With no |
| Lewis Carroll once said "if you don't know where you | | | | financial direction and plan, there are many persons |
| are going, any road will get you there." This applies | | | | now entering into retirement with no real savings to |
| today as much as it did in the 19th century when he | | | | tide them through the golden years. Also people are |
| wrote Alice in Wonderland. The first step towards | | | | living much longer and so their savings are being |
| successful wealth creation is to have a definitive | | | | stretched to the limit. If this person were to save an |
| financial plan. One needs to ask himself – where | | | | average of 10%, he would have with 0% interest |
| am I today financially? Where would I like to be in | | | | saved over $210,000. |
| five years, ten years? Will I have enough funds at | | | | |
| retirement to maintain my standard of living; will my | | | | Create a will |
| retirement be my golden years or my yearning | | | | It has been a misnomer that wills are only for the |
| years? What do I need to do to get there? | | | | rich, but this is not the case. You may have assets |
| Successful individuals choose and follow a well | | | | of sentimental value, such as family heirlooms and |
| thought out course of action towards realizing their | | | | personal items. Your will dictates how your assets will |
| long-term financial goals. As with most things in life, | | | | be distributed after you have departed. A willcan |
| without financial goals and strategies for meeting | | | | even dictate who should take custody of your |
| them, we drift along and leave our future to chance. | | | | children in case of your untimely departure. Many |
| The end result is the same: failure to reach financial | | | | successful persons have utilized wills to ensure that |
| independence. | | | | their wealth last for generations and that their legacy |
| | | | is preserved for as long as possible. |
| Seek the advice of a professional | | | | |
| When someone becomes sick, he immediately heads | | | | Control your debt |
| to the doctor's office. The doctor diagnoses his | | | | The credit crisis has brought to the forefrontthe |
| aliment and prescribes the appropriate course of | | | | danger of over-leveraging. There are many people |
| treatment. Why shouldn't the same apply to one's | | | | today who are facing financial ruin simply because |
| financial health? Now more than ever, is it important | | | | they borrowed more than was financially prudent. It |
| to have a financial advisor who is duly qualified and | | | | is important that one's debt to asset rationot exceed |
| experienced in order to help diagnose problems in | | | | 30%. For example if one has assets of $100,000, he |
| your budget, taxation, risk mitigation, savings rate, | | | | should not borrow more than $30,000. This level of |
| investment strategy and portfolio structure. This | | | | borrowing is healthy enough for him to leverage his |
| small investment in one's financial health today will pay | | | | position, without it becoming dangerous to his |
| big dividends tomorrow. A good financial advisor can | | | | financial health. It is also a great strategy to |
| help you identify your financial goals and prescribe | | | | renegotiate debts in times of low interest rates, in |
| relevant strategies to achieving them. | | | | order to reduce the financial strain on a person's cash |
| | | | flow. |
| Get proper life insurance coverage | | | | Have a long Term Care Solution |
| It is estimated that one in five households don't have | | | | One can do a great job at saving, investing,but can |
| life insurance. Life insurance is a cost effective way | | | | still be at great financial risk if there is no long-term |
| of protecting your business, your spouse and your | | | | health care plan. People are living much longer and |
| children. This allows you to have peace of mind that | | | | health care is becoming increasing expensive. It is |
| your family will be financially secure in your absence. | | | | important to have a great health care plan to ensure |
| Even though the exact amount will be dependant on | | | | that in case of major medical issues, one does not |
| your specific situation, a simple method for estimating | | | | have to utilize his life savings to pay for it. |
| your minimum need would be to purchase enough to | | | | I trust that the above simple financial strategies have |
| cover ten times your earnings. For example if your | | | | provided you with some valuable advice to assist you |
| annual income is $35,000, your life insurance policy | | | | with your overall financial goals and plans, and wish |
| should be at least $350,000. | | | | you continued wealth and prosperity. |