IFWA’s Top Ten Principle's for Financial Wellness

| May 31, 2019
Share |

  1. Establish clear and precise written financial goals.  

  2. Team up with a trusted financial professional to help you plan and execute a strategy, meet your goals, and monitor your progress.    

  3. Create a detailed income statement that clearly defines your income needs based on personal expenses.     

  4. Maintain an emergency cash reserve of 3–6 months expenses in a liquid conservative account. 

  5. Address risk management before investing.

  6.  Eliminate high interest non-deductible debt as soon as possible.

  7. Start a systematic investment program with a diversified portfolio of stocks, bonds, mutual funds, and non-correlated assets aligned with your financial goals.

  8. Incorporate both pre-tax and after-tax investments into your portfolio to minimize taxes today, tomorrow, and in the future.

  9. Keep speculative high-risk investments, which can have their place, to a minimum.

  10. Plan for a 1:1 ratio between paid up permanent life insurance death benefit and investments at retirement. This strategy will provide higher income efficiencies when distributing assets during your retirement years.   

Share |