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Financial Planning For Baby Boomer’s – Would You Invest In Yourself?

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Here is a thought provoking question. If your family were a business would you invest in it? I never ask that question without getting that deer in the headlights look.

Stop to think about it. Your family is similar to a small business. Both have income, expenses and net worth. This may surprise you but your net worth is probably greater than many small businesses. I used to consult for the ‘Small Business Administration’. Most of the businesses I consulted had very little or even negative net worth.

What criterion needs to be in place before you invest in a company, or hypothetically your family? You most likely want to see growing revenues with expenses under control and growing net worth. Surely you would need to be convinced a competent business plan was in place. A plan drives decisions that are made in the short term but resources are also allocated with an eye on future success.

A financial plan (or retirement plan) takes a lot of stress out of decision-making. For instance, if your family plan shows you need to save an extra $2,000 per year to retire by a certain age it is easier to accept cutting back in some spending areas. If you do not know you need the extra 2,000 you will not be motivated to save. On the flip side, if you have met your savings goals you should feel good about splurging. Having a plan in place and executing it can relieve you of some guilt and might reduce family arguments over finances. It is common knowledge that one of the major reasons for marital discord is financial issues like spending or savings habits. Knowing the details of you financial life (both current and future) makes it easier to set goals and have the confidence you will achieve them.

If you’re net worth is growing, expenses are under control and you have the right percentages allocated to savings and investments your off to a good start. Once you understand your current standing you can incorporate where want to be in the future. You can determine where you need to be by a certain age and how you are going to accomplish it.

You would not take a long road trip to an unknown location without a road map. You’re financial or retirement plan is the road map to your family’s financial future.

Look at yourself as the ‘Chief Executive Officer’ or ‘Chief Financial Officer’ of your family. Take the responsibility seriously and challenge yourself to make sure your family is worth investing in. Put together a competent business plan and be determined to execute it… good luck.

David Skill, a ‘Chartered Retirement Planning Counselor’ has created an easy retirement system that enables conscientious baby boomers to determine how much money they need to retire. David asks all the vital questions, uses common language and plenty of examples so the participant builds confidence their money will last through retirement and they will not burden their children. Check out >>>>>>>>> http://babyboomerseasyretirement.com/