Posts Tagged ‘financial planning’

30, 60, or 90-Day Financial Business Breakthrough

In the online information area there is one thing that is consistent with all business:  Relationship between customer and business is a key factor in revenue success.  In an online business, relationship is built with consistent, valuable mostly written communication with clients. This requires ongoing content for emails, blogs, social media, etc.

Producing this information is costly, time-consuming and requires a different skill-set than consulting, coaching and advising
– yet is increasingly more and more necessary for business success today.

Unfortunately, many people have become understandably skeptical of the information they receive online. As a result, we have added regulations to protect against privacy fraud. This is good, but also creates barriers for many honest, ethical and hard-working people to reach and communicate with
their customers. I’m saying all this because I know from years of experience that reading something online, whether its in the form of a post, website, or email, there is a tendency for people to be hesitant, and in terms of email some people even get offended when they receive what they perceive to be an unsolicited sales pitch. I also know that building and maintaining relationships online requires a tremendous amount of ongoing, valuable content.

It’s been a couple years since I have posted anything or sent emails about my inventory of personal financial content – but it’s time for me to take another big step towards my true passion in biblical teaching. In the past, I primarily communicated by email through my business,  MoneyMinding, or through one of the financial industry partners I provided content and training for: Advisor.ca; CGA Professional Development, Investment Executive, Clickbank, Credit Union Professional Development, or some other optin source for personal finance information.  Today, I am reaching out again to offer access and / or purchase of this valuable intellectual property.

The opportunity is extremely limited for a select number of qualified professionals (or perhaps for only one person or organization) who would benefit from one of the following in their business as a coach, consultant, or financial advisor:

  1. A personal online ‘lead magnet’
  2. Exposure from increased personal social media content for blogs, newsletters, facebook, linkedin, etc.
  3. Having you own online course for sale
  4. Your own published book in print and / or ebook format
  5. A project manager / coach to get you set up and earning money in your business with any of these items for a fraction of the cost and minimal time and effort to produce yourself.

This isn’t a gimmick.  And it’s definitely not hype.  There are thousands of hours of professionally written personal finance articles, tips, books, courses, special reports and presentations available.  I wrote the material; I own the copyright, trademarks and applicable URL’s; I have over 30 years in and around finance and marketing; I have the credentials and experience which includes teaching licensing courses for financial professionals including the CFP; I have developed materials for financial regulators and produced one of the best-selling continuing education courses for the CGA professional development association for over 5 years running.  Best of all, financial literacy information is generic, timeless, borderless and this content was developed to build a connection between clients and the professionals who serve them.

This is not an offer that is available on an ongoing basis for anyone to take advantage of (unless you wanted to do that yourself as a business within a business).  If you are curious and think there might be something you and / or your organization can benefit from then we will have a one-on-one conversation about whether the opportunity makes sense for you.  I can be reached at 250-592-0457 (pacific time), or sam@sampiercy.com to arrange a time.  Please don’t send an email asking me to send additional information.  I will discuss the opportunity personally only.  Thank you.

Sam

PS.  The reason it’s a 30, 60, or 90-day turnaround is because the content is ready for rebranding, reprinting and repurposing with minimal input of effort.  This will produce almost immediate results in your business, and provide an opportunity for instant, enhanced credibility which also increases revenue potential! 

House Rich, but Savings Poor – A Great Example of a Financial 1/2 Truth

The following short summary for financial advisors of a recent study on savings and debt levels in Canada got my attention, and not for the stats it revealed, rather for what it isn’t say – as always…

My comments are written in italics for you to see why our current world view of finance is NOT God’s plan – no matter how much we try to add scripture to support a debt free lifestyle.  God’s plan is for increase and sustainable income that benefits everyone.  A financial model that focuses on saving for retirement for self isn’t sustainable, and in fact feeds the self-focus that leads to a life of debt.  This doesn’t mean ‘don’t save’ it means that saving is only 1/2 the truth.  God’s plans are about Him, community, and increase – not about lack, uncertainty, or financial slavery.

The latest Manulife Bank Homeowner Debt Survey reveals many Canadians find it difficult to pay for today and plan for tomorrow.

  • Only 4 in 10 are very confident they’ll save  enough for retirement
    • We don’t actually need savings in order to leave work.  We need income to support the plans and purposes God has placed in each of our hearts to fulfill.  The concept of saving for retirement assumes that you will then use or draw down those savings (or hope to accumulate enough savings to live on the interest generated from them. The common teaching is to grow the savings, then live off your savings and hope you have enough after you ‘retire’.  Mathematically this requires approximately 1/3 of your after-tax income in order to maintain a similar lifestyle after leaving work and invokes fear and insecurity over ‘not having enough’.   
  • 1 in 4 expect home equity to make up more than 80% of their wealth at retirement
    • Another ‘depletion’ strategy that anticipates drawing down savings, and encourages chasing high returns in order to accumulate savings and / or equity.

Faced with rising housing costs, homeowners struggle to balance saving, debt repayment and daily expenses. [Interesting how the concept of earning additional income through entrepreneurial thinking isn’t even mentioned as an option]

Many may arrive at retirement house-rich, but savings-poor, which could require them to make difficult decisions [A series of defeatist, depletion-type strategies not in alignment with God’s plan for increase, abundance, generosity and prosperity in ALL areas of life]:

  • retire later than planned
  • accept a lower standard of living
  • downsize their home
  • borrow against home equity

Helping your clients achieve the right balance of saving, spending and debt repayment can start with a simple conversation. Visit the Solutions Centre where you’ll find tips to start the conversations, debt-management worksheets, and more insights to support your advice.

Efficient Use of Financial Resources Creates Unlimited Financial Possibilities

The definition of financial planning is ‘efficient use of resources’.  Unfortunately the concept of resources seems to be commonly accepted to be a scarce resource that needs to be controlled so you don’t lose it.  An underlying values system that generally accepts money as something that is risky is indicative of a fear of losing this ‘scarce resource’.  On the other hand, a view of money that understands its unlimited potential will approach day-to-day spending, investing, and financing decisions in a completely different way.  Interestingly, either view will usually result in reinforcement of the initial belief making it extremely difficult to recognize the missed opportunities that could have been if a balanced and integrated perspective had been implemented instead.

The fear based, scarcity decision approach is indicative of the lack of foundational financial knowledge of our adult population. Unfortunately financial basics like we received in reading, writing and arithmetic were not part of a school curriculum because it wasn’t necessary 30-50 years ago.  This lack of training also unfortunately means a lack of respect and a misguided belief that the ad-hoc, trial and error, and hearsay learning is all that’s necessary.  This belief is especially unsettling when it is combined with an assumption that if someone has achieved a certain level of wealth that those people are the best teachers in the area of money.  Perhaps, but not necessarily.

Every situation is different and what someone else did to create wealth is not necessarily going to be applicable for everyone else.  Wealth creation is a very personal, emotional and situational subject, particularly when the financial marketplace is changing so dramatically and so quickly.  Experiential learning is obviously extremely valuable and can result in seemingly solid financial situations, but more often than not it can also result in misguided strategies and result in missed opportunities, often that the unsuspecting person doesn’t even realize where they could have done better.  The missing key is the basic knowledge to know what questions to ask of the professionals who will be providing the specific financial products and strategies for each unique and personal situation.

This means that within our families, organizations, and communities, we have to realize that the world or money has changed; that it is a very complex technical industry requiring specialized knowledge, training and expertise and that the average person has a responsibility to know what’s important to them so they can communicate their needs effectively to financial professionals to get answers.  It is certainly not prudent to expect a financial advisor to do it all for you, nor is it prudent to think you can do it all yourself.  Financial decisions, like medical decisions, are very personal and emotional and require a lot of understanding of a multitude of variables which require individual attention and often multiple financial experts.  The personal competence and confidence when making decisions are what financial experts are not trained in or compensated to provide for you.

This also means that to benefit from a balanced and therefore efficient use of financial resources an awareness of personal beliefs and priorities is the most important step.  This will help you find and communicate effectively with the professionals who have the technical ability to implement strategies and plans for you to experience goals beyond what you might have originally thought possible.  It’s also critical to recognize that money is not a scarce resource and that risk (or loss) is something that can be managed.  This again requires appropriate knowledge and skills to work with the professionals to earn, manage and maintain your finances efficiently.

Here are a couple examples of how knowledge (or lack of it) can potentially limit opportunities that on the surface might have previously appeared prudent, or risky:  

1.   Assume you have $10,000 in cash and you have a $10,000 balance on a credit card.  One strategy for these 2 resources would be to take the cash and pay off the credit card. This certainly makes sense because likely the interest charged on the credit card will be higher than what you’re getting on savings.  Another strategy would be to invest the $10,000 to try to grow it into more money because ‘it’s nice to have money in the bank.’

However, how many people would consider using the $10,000 cash to pay off the credit card, then taking the $10,000 available credit and investing it into a wealth creating opportunity such as a business, investment, real estate project?  There are potential tax benefits to doing this as well as the potential flexibility built into your financial situation.  Plus, if the wealth creating opportunity generated ongoing income which would cover the credit card payments and provide additional income for the investor now your money is working to create more wealth.  Not to mention that you would still get to experience the ‘money in the bank’.

What if the $10,000 available credit was used as an investment along with others and meant that your pooled money could access even more potential because collectively your funds were able to purchase a larger investment, property, business program?

In either of these 2 scenarios, your use of the $10,000 could enable continued growth and wealth building that was efficiently using resources in a useful way where not only your situation could benefit but potentially others as well.  Obviously there are some critical skills and knowledge and loss protection strategies that would be considered in using your financial resources in this way, so this is certainly not to advocate that this is the right situation for everyone.  It’s an example of how viewing money from an unlimited perspective requires development of additional foundational skills and knowledge in order to confidently and effectively take advantage of an integrated strategy such as this.

2.   Now consider an example of what a situation could look like if you have enhanced your skills, knowledge and confidence and now have $1,000,000 available cash.  One thing you could certainly do with the money would be to invest it into businesses (through stocks), or into real estate.  If you bought real estate for yourself with the money you could then own your home which is certainly a high priority for most people.  However, if you were considering an investment, you could purchase a property and receive rental income.  This is now good for you and for others.  However there is a considerable amount of missed opportunity and flexibility and therefore added risk with these all-or-nothing approach.

If you instead combined various financial resources, and pulled together proper legal, lending, investing, insurance, tax and loss protection strategies, your situation could effectively provide a more stable and abundant financial plan for earning, managing and maintaining your wealth plus providing opportunities for others.

You could potentially take a percentage of your $1,000,000 (say $250,000) and purchase a property worth $1,000,000 by taking a $750,000 mortgage.  You could receive rental or lease revenue as cash flow plus you would still have the $750,000 additional cash to invest and be available for other opportunities or situations that might come up if the market or in your personal situation.  You don’t have this flexibility or security with the ‘all-or-nothing’ approach.

Taking this one step further like we did with the $10,000 being pooled with others, if you took $250,000 cash and a mortgage for $750,000 to acquire a $1,000,000 property, you could potentially provide an opportunity of others as well by developing or expanding your property.  This means, that with a smaller amount of money you provide diversification, opportunity, flexibility, security, and an overall efficient plan to create wealth not just yourself, but for others as well.

This is obviously not to say, that everyone should go jump into highly leveraged, creative investment concepts.  Financial planning is about the efficient use of ALL resources, including careful review and planning of your personal circumstances, your knowledge, skills, and the professional advisors on your team.  All these resources will either come together effectively to expand wealth and provide opportunities, or limit potential depending on your underlying belief.  When money is viewed as a scarce resource it is typically from missing knowledge and skills or inappropriate application of partial knowledge.  Either way, not taking advantage of all the resources available to you, or applying them in an inappropriate is usually because of a fear of not having enough, or fear of running out, or losing out.  This means that even some seemingly good financial strategies can on the surface seem to be prudent, when in reality they are sacrificing future opportunities or exposing you to different risks.  Flexibility and consideration of changing circumstances are important factors.

The critical consideration is to be aware that decisions based on fear of loss, or from an underlying belief that money is a scarce resource, are really pointing to a need for the development of financial skills and knowledge.  With increased financial knowledge there is an ability to take advantage of opportunities through competent and confident decisions.   There are infinite possibilities, and million dollar decisions start with the realization that we all have million dollar opportunities.  Million dollar opportunities start by learning to ask different questions to fully understand the benefit of skills such as financial math, financial forecasting, loss protection strategies, integrative planning, values, community, and more. And when we do, the benefits will be experienced within your own family, your organization, your community and our society as a whole!

To read more like this and to uncover the proven system and strategies to evaluate opportunities to make decisions that are right for you, visit www.deathbymoney.com to read The Death by Money Report and to access my private members area, mVillage.