Beyond Financial Fitness Workbook

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NINE Putting It All Together “There are two times in a man’s life when he should not speculate: when he can’t afford it, and when he can.” —Mark Twain Let’s review where we are. First of all, you’re going to utilize the many tools from the defense of personal finance that we taught in the <strong>Financial</strong> <strong>Fitness</strong> book and eliminate your consumer debt (and stay out of it for the rest of your life)! Next you are going to establish your emergency savings account, do some basic survival preparation, and all the while funnel as much money as you can into yourself and your primary method of earning money. By doing this latter part, you are feeding the goose that lays the proverbial golden eggs and playing offense. Perhaps this is a business or a career, but you realize that maximizing the investment in yourself is the best investment you will ever make. Then, with any excess money beyond that you will begin investing in the various assets listed on the left side of the Risk Meter, in general working from the bottom up. This includes getting your tax and legal advisers in place, getting your will and powers of attorney prepared, and making sure you and your family are properly insured in all the necessary areas. Further, you have selected the asset allocation plan that suits you best and will begin buying index ETFs in proportion to that allocation in a brokerage account you will open yourself or through a full service provider you will pay to do it for you. You will also max out any contributions into the tax-advantaged accounts such as 401(k)s and IRAs for which you are eligible (and will consider these when looking at your overall asset allocation). Then, on a monthly basis you will continue to buy into your portfolio of assets in the exact proportion you have determined through the process of dollar-cost averaging. Finally, you will do all of this for the long-term. “The psychology of ________________________ is a veritable theater of the absurd.”
“Trust in time rather than ________________.” Your _______ _________ ____ ________________ is your actual percentage gain after paying expenses. ________________________ will automatically, unemotionally, consistently, and periodically lock in your winnings and force you to buy other assets while they are on sale. True/False 7. Unless you are going to be a professional who pursues finances as a fulltime occupation, investing is supposed to be a sideline venture. What are some different insights you may get from this graph? How long will it take for your investment to double? Use the “rule of 72”. Take
Page 4 and 5: The information presented in this b
Page 7 and 8: CONTENTS Introduction Part I—Comp
Page 9: that outlines how you will earn, sa
Page 12: Your goal should be to get by on on
Page 15 and 16: In what ways are you currently “i
Page 17: Think of some examples of people yo
Page 20 and 21: Do you already have a Durable Power
Page 24 and 25: FOUR The Top of Hierarchy “The gr
Page 26: • Index funds are an easy way to
Page 29: How does deflation affect your fina
Page 33 and 34: What does this chart tell you about
Page 35: True/False 2. If interest rates go
Page 39: True/False 4. ETFs will almost alwa
Page 42 and 43: What does this graph tell you about
Page 44: Bonds = 35% Stocks = 40% Real Estat
Page 49: ___________________________________
Page 52 and 53: True/False 10. Those who sufficient

Beyond Financial Fitness Workbook

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