Financial freedom is multi-layered. First, you want to cover the bills. Then, you build stability, so you have less worry. Afterward, you layer on some more to enjoy life. Finally, most turn toward living their best life now AND leaving a legacy.
As someone who loves the Infinite Banking concept, many people ask me questions about life insurance and how a properly designed policy could benefit their journey to greater financial freedom. What they often forget is that any financial concept is best implemented as part of a comprehensive financial strategy.
As a CFP® (CERTIFIED FINANCIAL PLANNER™) professional, what do I believe is the secret to strategic planning to get you to financial freedom quickly and without taking unnecessary risk? I just did it. It's asking powerful questions.
Yet, too many people don't know the right questions to ask. To empower you on your journey, here are 10 of my favorites.
- What would be a realistic goal for someone in my financial situation? – Sometimes, you’re too close to your circumstances to see potential goals you should consider. This question helps reveal what you might be missing.
- How often should I assess and determine my financial goals and strategy to achieve them? – Situations change. Does it make sense for you to assess your goals and strategies once a year? How about more often when things are changing more rapidly?
- What are some educational resources or tools you recommend helping better understand my finances? – This is a great question to ask anyone you aspire to be like. Perhaps the resources that got them to where they are would help you too.
- How can I find a balance between my lifestyle, necessary expenses, and setting aside funds for the future? – The sooner you find this balance, the sooner you can worry less that you’re doing the “right” things and settle into a joy-filling groove. It is possible to enjoy life now and make sure you have funds to enjoy life later.
- How much should I save and invest for my future from my regular income? How about when I receive a windfall? – Notice saving is different from investing. Based on your current portfolio, age, goals, and so forth, making a clear distinction and moving forward with more of one or the other can make a huge difference.
- How can I determine an appropriate retirement savings or income target? – As a real estate investor, retirement means something different to you than most. How should you targets adjust accordingly?
- What's a safe withdrawal rate in retirement? – This is a hotly debated topic. What if there’s a unique answer for you rather than a cookie-cutter approach?
- What strategies are recommended to have a positive impact on the next generations? – Real estate is one of the best ways to create and maintain generational wealth. How can you make sure you have the biggest impact possible?
- What strategies do you recommend for protection against financial setbacks? – Life and real estate can be full of surprises. Things don’t always go according to plan. Yet, you want emergency funds to grow better than inflation. Ask what strategies you could explore!
- When should I approach details on my estate planning? How do I maximize the inheritance being passed on? – When we go on to greener pastures, no one wants a bunch of the money to go to the Internal Revenue Service or for their loved ones to wait months for probate court to decide what happens with their assets. Taking a thoughtful approach here can give you and your family peace of mind.
Finally, I’ve got a few tips for how to use these questions.
First, you can ask these questions of yourself, with your partner, with family, and to people you respect and admire. One of the best places to explore these questions is with a financial professional who knows your specific situation. If you aren't getting the exploration you want for your journey, I'd consider it an honor to chat with you.
Additionally, these questions are great ones to return to on a regular basis. The answers change as you grow personally and financially. Keep this list and refer to it often.
Most importantly, these are my top 10 for a reason. I believe if you can explore and discover your answers to these 10 questions in collaboration with a financial ally like a CFP, then all other questions will be easier.
If you’d like to talk to someone who has been specially trained and authorized to specifically design a Bank on Yourself policy as described above alongside wholistic financial planning, please contact us at: hello@wealthwisdomfp.com or call us at (513) 447-6501.