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PART 1: PLANNING FOR LIFE - TimMaurer.com · 2016. 7. 28. · of your death. What will you do in...
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SIMPLE MONEY © 2016 Tim Maurer SIMPLE MONEY JOURNAL PART 1: PLANNING FOR LIFE Personal finance is more personal than it is finance. CHAPTER 1: ENOUGH Redeeming Wealth Defining True Wealth (Courtesy of Money Quotient) 1. How do you define success in your working life? _________________________________________________________________________________________________________________________ _________________________________________________________________________________________________________________________ 2. How do you define success in your family (or home) life? _________________________________________________________________________________________________________________________ _________________________________________________________________________________________________________________________ 3. How do you define success in your financial life? _________________________________________________________________________________________________________________________ _________________________________________________________________________________________________________________________ 4. What do you need to be content? _________________________________________________________________________________________________________________________ _________________________________________________________________________________________________________________________ _________________________________________________________________________________________________________________________ 5. How do you hope to be remembered someday? _________________________________________________________________________________________________________________________ _________________________________________________________________________________________________________________________ _________________________________________________________________________________________________________________________ _________________________________________________________________________________________________________________________
Transcript of PART 1: PLANNING FOR LIFE - TimMaurer.com · 2016. 7. 28. · of your death. What will you do in...
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SIMPLEMONEY©2016TimMaurer
SIMPLEMONEYJOURNALPART1:PLANNINGFORLIFE
Personalfinanceismorepersonalthanitisfinance.
CHAPTER1:ENOUGHRedeemingWealth
DefiningTrueWealth(CourtesyofMoneyQuotient)
1.Howdoyoudefinesuccessinyourworkinglife?_________________________________________________________________________________________________________________________
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2.Howdoyoudefinesuccessinyourfamily(orhome)life?_________________________________________________________________________________________________________________________
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3.Howdoyoudefinesuccessinyourfinanciallife?_________________________________________________________________________________________________________________________
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4.Whatdoyouneedtobecontent?_________________________________________________________________________________________________________________________
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5.Howdoyouhopetoberememberedsomeday?_________________________________________________________________________________________________________________________
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Top10MoneyScripts(CourtesyofKahler/Klontz)
Herearethetop10MoneyScripts:
• “Moneyisgood.”
• “Moneyisbad.”
• “Idon’tdeservemoney.”
• “Ideservetospendmoney.”
• “Therewillneverbeenoughmoney.”
• “Therewillalwaysbeenoughmoney.”
• “Moneyisunimportant.”
• “Moneywillgivemylifemeaning.”
• “It’snotnice(ornecessary)totalkaboutmoney.”
• “IfI’mgood,theuniversewillsupplyallmymaterialneeds.”
DoyourecognizeanyofyourMoneyScriptsinthislist?_________________________________________________________________________________________________________________________
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RewritingMoneyScripts1. IstheMoneyScripttrue?
2. Canyouabsolutelyknowitistrue?
3. WhathappenswhenyoubelievetheMoneyScript?(Whoareyouwhenyouthinkthat?Howdoyou
react?)
4. WhatorwhowouldyoubewithouttheMoneyScript?
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Now,rewriteyourMoneyScripts:MoneyScript#1:____________________________________________________________________________
Rewritten:____________________________________________________________________________________
MoneyScript#2:____________________________________________________________________________
Rewritten:____________________________________________________________________________________
MoneyScript#3:____________________________________________________________________________
Rewritten:____________________________________________________________________________________
MoneyScript#4:____________________________________________________________________________
Rewritten:____________________________________________________________________________________
MoneyScript#5:____________________________________________________________________________
Rewritten:____________________________________________________________________________________
MoneyScript#6:____________________________________________________________________________
Rewritten:____________________________________________________________________________________
MoneyScript#7:____________________________________________________________________________
Rewritten:____________________________________________________________________________________
WhatINSIGHTSandACTIONSdidyoutakefromChapter1?
INSIGHTS ACTIONS
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CHAPTER2:VALUESThreeQuestionstoGuideYou
WheelofLife(CourtesyofMoneyQuotient)
TheWheelofLifeinstructionsare,dareIsay,simple.Yourateyoursatisfactionofeachareaoflifebetween0and10.Zeroistheworst,representedasthecenterofthewheel,and10isthebest,attheendofeachspoke.Afteryouplotyoursatisfactionforeachfacetoflife,thenconnectthedotstobeholdthesizeandshapeofyourwheel.Goahead,giveitatry!
Now,whatreflectionsdoyouhavefromcompletingtheWheelofLife?_________________________________________________________________________________________________________________________
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Kinder’sThreeQuestions(CourtesyofTheKinderInstituteofLifePlanning)
QuestionOne:Iwantyoutoimaginethatyouarefinanciallysecure,thatyouhaveenoughmoneytotakecareofyourneeds,nowandinthefuture.Thequestionis,howwouldyouliveyourlife?Whatwouldyoudowiththemoney?Wouldyouchangeanything?Letyourselfgo.Don’tholdbackyourdreams.Describealifethatiscomplete,thatisrichlyyours._________________________________________________________________________________________________________________________
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QuestionTwo:Thistime,youvisityourdoctorwhotellsyouthatyouhavefivetotenyearslefttolive.Thegoodpartisthatyouwon’teverfeelsick.Thebadnewsisthatyouwillhavenonoticeofthemomentofyourdeath.Whatwillyoudointhetimeyouhaveremainingtolive?Willyouchangeyourlife,andhowwillyoudoit?_________________________________________________________________________________________________________________________
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QuestionThree:Thistime,yourdoctorshocksyouwiththenewsthatyouhaveonlyonedaylefttolive.Noticewhatfeelingsariseasyouconfrontyourveryrealmortality.Askyourself:Whatdreamswillbeleftunfulfilled?WhatdoIwishIhadfinishedorhadbeen?WhatdoIwishIhaddone?WhatdidImiss?
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YourLife’sPriorities
AsyouconsideryouranswerstoKinder’squestionsandrevisityourWheelofLife,whatcomesthroughasthatwhichyoumostvalue—yourlife’spriorities?Pleaseconsiderthatifyouhavetoomany,thennothingisapriority.Ichallengeyoutokeepthenumberofprioritiessmall—nomorethanseven,maybefewer.Iflistsdon’tsuityou,that’sentirelyfine.Writeastatement,sentenceorparagraphtoexpresswhatismostimportanttoyou.Andifyou,likeme,areaparticularlyvisualperson,Iencourageyoutocreateacollageofpicturesordrawingsrepresentingyourprimarymotivators.(Here’sagreatexamplefromauthorandearlyTwitterhire,ClaireDiaz-Ortiz.Keepitinyourhomeorofficeasavibrantreminder.)
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WhatINSIGHTSandACTIONSdidyoutakefromChapter2?
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CHAPTER3:RIDINGTHEELEPHANTUnconventionalGoalSetting
UnconventionalGoalSetting
Ensurethatgoalsare…1. Self-selected,yours,notsomeoneelse’s2. Authentic,consistentwithyourpersonalgiftingandattributes3. Others-oriented,acausethatisbiggerthanyoualone
Now,you’rereadyto…4. Articulateyourgoals,withasmuchspecificityaspossible5. Testthemforattainability6. Confirmthattheactionsrequireddon’tconflictwithvaluesorpriorities7. Schedulenextactionsand/orestablishhabits
WriteoutaFullyArticulatedGoal(orTwo)
GoalConstructionExercise Goal:____________________________________________________________________________________________________________________________________________________________________________________
Criteria:Howisitself-selected?________________________________________________________________________________________________________________________________________________________________Authenticallymine?__________________________________________________________________________________________________________________________________________________________________Others-oriented?______________________________________________________________________________________________________________________________________________________________________
Whatactionsneedtobetaken?_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Whatisthenextaction?_______________________________________________________________Datecompleted:____________________
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WhatINSIGHTSandACTIONSdidyoutakefromChapter3?
INSIGHTS ACTIONS
GoalConstructionExercise Goal:____________________________________________________________________________________________________________________________________________________________________________________
Criteria:Howisitself-selected?________________________________________________________________________________________________________________________________________________________________Authenticallymine?__________________________________________________________________________________________________________________________________________________________________Others-oriented?______________________________________________________________________________________________________________________________________________________________________
Whatactionsneedtobetaken?_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Whatisthenextaction?_______________________________________________________________Datecompleted:____________________
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CHAPTER4:CALLINGFindingLife-GivingWork
Life-Takingvs.Life-GivingMymentorrecommendedaverysimpleexercisethatIstillusetothisday.Onablanksheetofpaper,hedrewalinedownthemiddle.Atthetopoftheleft-handcolumn,hewrotethephrase“Life-Taking.”Ontherightcolumn,hewrote“Life-Giving.”ThenhehadmepickasideonwhichtowritedowneachofthenumerousrolesandobligationsIhadassumedwereallsomehowpartofmycalling.ThatIwascapableoffulfillinganyoftheseroleswasbesidethepoint.Instead,iftherewasanythingI’dsaidyestothatseemedtoslowtheclockandsapmyenergy,itshouldlikelybeplacedinthe“Life-Taking”column.Thoseitemswereprobablynotpartofmycalling,andshouldbethefirstonthechoppingblockwhenitcametoseekingoutamorelivablelife.
WhatINSIGHTSandACTIONSdidyoutakefromChapter4?
INSIGHTS ACTIONS
LIFE TAKING LIFE GIVING
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CHAPTER5:TIMEInvestingYourMostPreciousCommodity
AVisualSystemforInvestingYourTimeWisely
WhatINSIGHTSandACTIONSdidyoutakefromChapter5?
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PART2:PLANNINGFORTODAYThemostimportantelementsofpersonalfinanceare,thankfully,thesimplest—
butthey’renoteasy.
CHAPTER6:PERSPECTIVEWhereDoYouStand?Inordertoknowwhereyoustand,weworktowardagaugeofyourlevelofcontentment,theEnoughIndex.Webeginbygettingahandleonhowmuchyouhaveinemergencyreserves.
ThechancesaregoodthatifyourSavingsIndexislow,you’realsosufferingwithtoomuchinRUCdebt—revolving,unsecuredconsumerdebt:
TheRetirementIndexisalittletrickierthantheSavingsandDebtIndices.Gettingtoyournumberisathree-stepprocess:Step1:DetermineYourRetirementMultiple(YRM)Step2:OnceyouhaveyourYRM,youcandetermineyourRetirementReadinessScore.Here’swhatIdrewinmyjournaltoshowyouhowthesetwostepsworktogether:
Howmanymonths’worthoflivingexpensesdoyouhaveinemergencyreserves?_____
Pleasemultiplytheabovenumberby8:x8
YOURSAVINGSINDEX: _____
Howmanymonths’worthoflivingexpensesdoyouhavetiedupinRUCdebt?_____Pleasemultiplytheabovenumberby10:x10YOURDEBTINDEX: _____
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Ofcourse,you’llneedFidelity’sretirementsavingschartinordertodeterminewhatFidelity’sTargetMultipleisforapersonyourage.Again,directlyfrommyJournal:
Now,you’rereadytocalculateyourRetirementIndex:
Thereisaconnectionbetweenhowmuchwewillinglygivetothoseinneedandourowncontentment,hencetheGivingIndex:
Now,it’stimetoputallofthesepiecestogetherandseewhereyoulandontheEnoughIndex…
WhatisyourRetirementReadinessScore?_____Pleasemultiplyyourscoreby56:x56YOURRETIREMENTINDEX:_____
Whatpercentageofyourincomedoyougiveonanannualbasis? _____Pleasemultiplythisnumberby2: x2YOURGIVINGINDEX: _____
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EnoughIndex
SavingsIndex: SubtractyourDebtIndex: AddyourRetirementIndex: AddyourGivingIndex: YOURENOUGHINDEX:
DoesyourEnoughIndexscoreaccuratelyreflectyourfeelings?DoyoufeellikeyouhaveEnough?_________________________________________________________________________________________________________________________
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WhatINSIGHTSandACTIONSdidyoutakefromChapter6?
INSIGHTS ACTIONS
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CHAPTER7:ESSENTIALSStraightTalkonSavingsandDebt
TheCashFlowPersonalityContinuum?
Areyoupleasedwithwhereyouputyourselfonthecontinuum?Ifyou’reinarelationshiporaparent,wheredoyouputyourspouseorlovedones?_________________________________________________________________________________________________________________________
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WhatINSIGHTSandACTIONSdidyoutakefromChapter7?
INSIGHTS ACTIONS
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CHAPTER8:FINANCIALSTATEMENTSIntroducingYourNewCFO
Life-GivingBudgetingHere’sanexampleofabudgetingsystemfromSimpleMoney:
ThinkaboutthissystemandthetoolsmentionedinSimpleMoney(likeYNAB.comandMint.com).
ConsiderthemethodIputintoplace,settingasidetimeeachSaturdaymorningwithsomestrongcoffee
andgreatmusictoreviewthehouseholdfinances.I’mnotsuggestingyouduplicatemyroutine—but
whatwouldalife-givingbudgetingexerciselooklikeforyou?Makesurethatit’sself-selected(your
initiative,notsomeoneelse’s),authentic(consistentwithyourpersonalgifting)andothers-oriented(a
causebiggerthanyoualone)inordertoincreasethesuccessofyournewsystem:
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INCOME*6% 401(k)*
94%
Checking10%Giving6% Roth IRA
3%Savings
Fixed Expenses
Discretionary Expenses
MortgageSchool LoanAuto LoanRUC Debt
GymLife Insurance
Disability InsuranceAuto Insurance
TuitionKids' Allowance
HisHersOurs
Predictable Expenses
75%
GroceriesUtilities
LandscapingClothing
GiftsFuel
Auto RepairHome
VacationHolidaysMedical
*Most 401(k) contributions will be "pre-tax," but most other expenses will come out of after-tax earnings and may or may not be subject to tax deductibility.
Most of your household budget is
automate-able
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ForRicherorForPoorerIfyou’remarried—orheadedinthatdirection—howwelldoyouunderstandyourspouse’sfinancialpast
andtheimpactthatithasonthepresent?Howaboutyourownpast?
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WhatINSIGHTSandACTIONSdidyoutakefromChapter8?
INSIGHTS ACTIONS
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PART3:PLANNINGFORTHEINEVITABLEPlanningforthefutureismadesimplerbybringingitintothepresent.
CHAPTER9:INVESTINGASimplePortfolioThat’sBeatenthePros
TherearenoSimpleMoneyJournalentriesforChapter9,perse,butthere’satonofactionablematerial
andsomeadditionalonlineresourcesforyou:
• AwebpagedevotedtotheSimpleMoneyPortfolio:www.SimpleMoneyPortfolio.com
• Forthosewhowanttotakeitastepfurther,customizingtheSimpleMoneyPortfolio,apassword
protected(thelastheaderintheinvestmentchapter—hint:amovie)webpagetowalkyou
throughthatprocess:www.SimpleMoneyPortfolio.com/customize
WhatINSIGHTSandACTIONSdidyoutakefromChapter9?
INSIGHTS ACTIONS
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CHAPTER10:EDUCATIONGettingSchooled
TheNonconformist’sFour-StepEducationSavingsPlan
Step#1:Determineifyouarefinanciallyable.Beforeyoutellyourkids(orgrandkids)whatyou’rewillingtohelppayforcollege,it’simportanttobe
honestwithyourself.Canyouaffordtohelp?
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Step#2:Determinewhetherornotyouwillchoosetopay.Thisisthemissingstepforalotofbenefactorswhofeelthey’vebeenbulliedbythefinancialindustryintofootingthebillfortheirkids’college.Payingforcollegecanbeagreatdecision—butit’sstillyourdecision.Doyouchoosetohelp?_________________________________________________________________________________________________________________________
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Step#3:DevelopaFamilyEducationPolicy.AFamilyEducationPolicyisthecleararticulationoftheanswertoaquestionmostparentswillhearfromtheirchildren:“So,howmuchwillyoupayformycollegeeducation?”What’syourPolicy?_________________________________________________________________________________________________________________________
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Step#4:Developacollegesavingsplan.Howmuchareyougoingtosave,andwhereareyougoingtosaveit?_________________________________________________________________________________________________________________________
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WhatINSIGHTSandACTIONSdidyoutakefromChapter10?
INSIGHTS ACTIONS
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CHAPTER11:RETIREMENTTheWobblyThree-LeggedStool
TheWobblyThree-LeggedStoolofRetirement
What’sthestateofyourthree-leggedstool?Areyouoneofthedecreasingnumberoffutureretireeswith
allthreelegsofthestool,orareyoudealingwithstilts—orapogostick?
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WhatINSIGHTSandACTIONSdidyoutakefromChapter11?
INSIGHTS ACTIONS
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CHAPTER12:FINANCIALINDEPENDENCETheNewRetirement
PreparingforRetirementDespiteitsseeminglyutopianpromise,retirementisoneofthemorestressfuleventsanindividualor
householdwillendure—financiallyandpersonally.Therefore,it’shighlyrecommendyouproceedwith
deliberateconsiderationandplanning.Considerthefollowingexercise:
1. Thinkaboutit.Consideringthemagnitudeoftheretirementdecision,isn’titinterestingthatit’s
usuallytheElephantdrivingthisdecision—nottheRider(chapter3)?ThisphaseofretirementplanningisintendedtogettheElephantandRiderworkingtogetheronthisbigproject.Togetthejuicesflowing,CarolAndersonofMoneyQuotientsuggestsansweringthefollowing“yes”or“no”questions:• I’mcountingthedaysuntilIcanretire.• Iexpectmyretirementtobeverydifferentfromwhatmyparentsexperienced.• Idon’twanttoretire“coldturkey.”• IworryaboutnothavingenoughmoneywhenIretire.• IwonderwhatIamgoingtodowithmytimewhenIretire.• IworrythatSocialSecuritywillnotbeavailablewhenIretire.• Ihaven’tthoughtmuchaboutwhatIwanttodowhenIretire.• IlikebeingproductiveandwouldliketocontinueworkingafterIretire.• I’mworriedthatmyhealthwillfailwhenIretire.• IhaveaclearvisionofhowIwillinvestmytimeandenergywhenIretire.
2. Planforit.Nowlet’sstartmovingintotherealmofthepractical.Whatwouldlifeactuallylooklikeinretirement?Notthefirstweek,butthethirty-first.What’sthetypicalweekinretirementforyou?Writeoutyouridealweekaswell.SundaythroughSaturday,whatwouldyoubedoingmorning,afternoon,andnight?
3. Practiceit.Now,putyourplanningtothetest.Takeaweekofvacation(ortwoifyoucanmanageit),andliveoutyourtypical,idealweekinretirement.Kickthetires.
WhatINSIGHTSandACTIONSdidyoutakefromChapter12?
INSIGHTS ACTIONS
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CHAPTER13:ESTATEANDLEGACYCheatingDeath
LegacyAnestateisthestuffweleavebehindwhenwe’regone.Alegacymightincludetangiblebelongings,but
it’salsotheintangiblecollectiveimpactwehaveontheworldaroundus.Considerthefollowingthree
questions,whichresonatewiththoseaskedinchapter2:
1.Iftodaywasmylastday,whatwouldmylegacybe?_________________________________________________________________________________________________________________________
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2.HowwouldIlikeittobedifferent?_________________________________________________________________________________________________________________________
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3.Howwouldmygoals(Chapter3)changeifIviewedthemaslegacy-buildingopportunities?_________________________________________________________________________________________________________________________
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WhatINSIGHTSandACTIONSdidyoutakefromChapter13?
INSIGHTS ACTIONS
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PART4:PLANNINGFORTHEUNEXPECTEDAvoid,reduceandassumetheriskyoucanhandle,andtransfertheriskthatyou
can’t—withinsurance.
CHAPTER14:INSURANCEWARNING!It’shardtoknowwhenweshouldbeusinginsurancewithoutunderstandinghowitworks:
TheSimpleMoneyRiskManagementGuide 1. Eliminaterisksthatofferlittlereward.2. Reducerisksbyemployingcommonsense.3. Assumerisksthatyoucanendure.4. Insurecatastrophicrisks.
WhatINSIGHTSandACTIONSdidyoutakefromChapter14?
INSIGHTS ACTIONS
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CHAPTER15:LIFE(INSURANCE)HarderThanItNeedstoBe
LifeInsuranceNeedsandWants
Needs Wants1.Paymentoffinalexpenses
2.Repaymentofdebtsandmortgages
3.Pre-fundingexpectededucationalexpenses
4.Fundingreplacementofhouseholdduties
5.Replacementoflostincome
1.Pre-insuringfutureneeds
2.Creatinganestate
3.Fundingcharitablebequests
4.Replacinganestatelosttotaxes
5.Buildingcashvalue
TheSimpleMoneyLifeInsuranceGuide Forincomeearners,multiplyyourincomeby15.Thenpurchaseatermlifepolicyforasmanyyearsasyoucan
conservativelyexpecttoneedtheincome.
IncomeX15=LifeInsuranceNeed
Forastay-at-homespouse,purchaseapolicywithadeathbenefitofbetween$250,000(ifchildrenareolder)and$500,000(ifchildrenareyounger).
WhatINSIGHTSandACTIONSdidyoutakefromChapter15?
INSIGHTS ACTIONS
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CHAPTER16:DISABILITYINCOME(INSURANCE)ProtectingYourBiggestAsset
TheSimpleMoneyLTDiGuide 1. Analyzeyourgroupplan,specificallytheany/ownoccupationdefinitionsandthebenefit
taxability.
2. Lobbyyourhumanresourcesdepartmenttosuggestthebenefitsofenhancingthoseprovisions.
3. Retainasupplemental,privateLTDpolicythroughareputablecarrierwiththefollowingprovisionsand/orriders:
a. Basebenefituptoatleast60percentofafter-taxincome.Higher,ifavailable.
b. Benefitperiodtoage65wouldbegreat,butatleastfiveyears.
c. Residualbenefit,toensureyoucangetapartialbenefitifyouworkpart-time.
d. Eliminationperiodof90days,oreven120daysifyoucanaffordit.
e. COLAsothatyourbenefitwillriseannuallyinthecaseofanextendeddisability.
f. Futureinsurabilityoptionsothatyoucanincreaseyourbasebenefitwithrisingincome(ifthisisn’tincludedinthepolicy).
g. Renewabilityprovisiontoensureyou’llcontinuetobeinsured.Non-cancellable/guaranteed-renewableisideal.
h. SocialSecurityoffsetmaycomplicateclaims,butitwillhelpsaveonpremiums.
i. Disabilitydefinitionsmightbethemostimportantfeature.“Any-occupation”istooweak,butpure“own-occupation”canbecostprohibitive.Consider“modifiedown-occupation,”“incomereplacement”ortheequivalent.
WhatINSIGHTSandACTIONSdidyoutakefromChapter16?
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CHAPTER17:LONG-TERMCARE(INSURANCE)WhenI’mSixty-Four
TheSimpleMoneyLTCiGuide1. Behonestwithyourself.Whenconsideringyourage,health,lineage,retirement
income,assetsandtoleranceforriskintheirentirety,istransferringalloraportionofyourlong-termcareriskthroughinsuranceawisemove?(Thedefaultansweris“probably.”)
2. Getaquoteforlong-termcareinsurancebasedonthefollowingpolicytemplate:
a. Dailybenefitof$100
b. Benefitperiodoffiveyears
c. Home-carebenefitof100%
d. Eliminationperiodof90days
e. COLAridertiedtoinflation(CPI)ifavailable
f. Maritaldiscountifappropriate
3.Adjustthepolicytoreflectyourpersonalriskcharacteristics.
WhatINSIGHTSandACTIONSdidyoutakefromChapter17?
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CHAPTER18:HOMEANDAUTO(INSURANCE)Don’tOverpaytoBeUnderinsured
TheSimpleMoneyHomeandAutoGuide*
WhatINSIGHTSandACTIONSdidyoutakefromChapter18?
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PART5:PLANNINGFORACTIONThebestplanintheworldisworthlessuntilitisputintoaction.
CHAPTER19:THETOP10YourNextDollar’sHome
TheSimpleMoneyTop10Onceyou’vespentthemoneynecessarytocoveryourfixedandvariablelivingexpenses,considerspendingyouradditionaldollarsinthisorder:
1. Create(orupdate)yourestateplanningdocuments.
2. Ensurethatyourinsuranceneedsaremet.
3. Payoffanyhigh-interestconsumerdebt.
4. Buildatleastonemonth’sworthoflivingexpensesinemergencysavings.
5. Earnfreemoneybytakingadvantageofyourcompany’s401(k)match.
6. Contributetoa529planforeducationsavings.
7. ContributethemaximumpossibletoyourRothIRA(s)ifyourincomelevelallowsyou.
8. Returntostrengthenyouremergencyreserves.
9. Comebacktoyour401(k)andmaxitout.
10. Setasideexcesssavingsinaliquid,taxableinvestmentaccountformidtermneedsandprojects.
WhatINSIGHTSandACTIONSdidyoutakefromChapter19?
INSIGHTS ACTIONS
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CHAPTER20:BEHAVIORMANAGEMENTWorkingwithanAdvisor
MinimumRequirementsforanAdvisorWhenyouhireafinancialadvisor,you’retheboss.SoIrecommendapplyingtheseminimumrequirementsinyoursearch:
Youradvisorshouldbeanexperiencedfiduciarywhoprovidesevidenceofexpertiseinafieldinwhichtheyareeducatedandcredentialed.Youdeservebetterthantheminimumrequirements,though.Readfurtherinthelastsectionofthechapter,beginningwith“IHope…”inSimpleMoney.
WhatINSIGHTSandACTIONSdidyoutakefromChapter20?
INSIGHTS ACTIONS
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CHAPTER21:SIMPLICITYTheOne-PageFinancialPlan
One-PageFinancialPlanAfterreviewingyourSimpleMoneyJournal,createaOne-PageFinancialPlancompilingthefollowing:
Priorities:
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Goals:
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NextActions:
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