With the new year right around the corner, many people are thinking about starting their own new business – whether as a full time venture or part time opportunity.  Here are some important questions to ask yourself as part of considering this big step:

• How do I make a good transition between my current job and income into my new endeavor?
• How do I make the best use of my own resources and finding others to help my business?
• What can I do to minimize the risks of starting or expanding my business?
• How do I balance my personal and business finances for the best overall outcome?
• What information do I need to manage and measure the success of my new venture?
• How can I make really conscious, thoughtful decisions right from the beginning to focus my efforts and align choices with my overall goals?

Best wishes for much enjoyment and satisfaction in your new endeavor!

One of the standard questions I ask new clients is whether they have companion animals.  While pets are such an integral part of our daily lives, it’s not uncommon to overlook making special arrangements for their care in the event that we ourselves become ill or pass.  There are a number of simple, straightforward options available for all of us to gain peace of mind in this area, both for ourselves and our furry companions, including pet trusts, setting up savings or life insurance plans, planning with local animal foundations, making provisions in our wills for care and guardianship, and more.  Be sure to ask your planner or estate attorney for some specific guidance in your particular situation.  And please also consider either using or supporting the Pet Peace of Mind program with a local hospice organization if you or someone you know needs assistance keeping that wonderful bond between human and companion together.

Pet Peace of Mind Video:

http://bit.ly/1kY4McP

Several posts ago we talked about the top three reasons people avoid financial planning.  But here’s some compelling reasons to get past those avoidance inclinations and claim the real benefits:

 

1. Save Money – Yes, you do have an upfront cost for planning services, but I’ve yet to sit with a client and not be able to save them money several times over that cost.  When you look at the cost and complexities of  insurances, loans, capital purchases, investment options, legal documents, and other topics, the experience and solutions that a professional (having worked with thousands of clients and hundreds of products) can offer you is a huge advantage in getting the right services at reasonable prices.

2.  Minimize the “Oops” Factor – Most people spend an average of 2-3 hours per week during working hours  trying to deal with unexpected financial matters and about 3 hours per day additionally worrying how to juggle their ongoing financial life.  When you make your plans upfront, you no longer have to waste these thousands of hours each year or deal with the consequences of unnecessary penalties and premiums of trying to fix a situation during a crisis.  You can enjoy a lot with this ‘extra’ time and money!

3.  Take Care of Yourself – When you invest in some upfront planning, you take care of yourself not only financially, but also improve your health, relationships, and future life.  Financial planning is about making your resources work for your towards your goals – it really isn’t about math, paperwork, or the stock market…so start claiming those benefits for yourself, your family, and your business now.

 

About half of the clients I work with are the “validator” type, those who like to actively gather information about their financial options and do their best to thoughtfully think about their decisions.  They visit with me to get a second opinion on their choices or to help narrow down the alternatives that will work best for them, their families, or their businesses.

This proactive approach is akin to us trying to eating healthier, exercise a bit more each year, or using other wellness tools that improve the overall quality of our current and future lives.  A periodic visit to a medical professional and/or alternative practitioners is a way to get the perspective of a respected individual who specializes in their expertise and who also has seen thousands of other clients – and therefore understands the practical nuances and customizations that are available above and beyond the standard basic answers.

We have access to ever more financial information and ‘solutions’ available via the media, internet, and social communications than ever before.  But we still have the challenge of putting together all the pieces of data into a realistic, holistic plan that will really work for us.  So please continue to do your readings, consider options, find educational sources, and other tools that get your attention.  And also know that there are a growing number of CFP professionals available to help be that second or third objective opinion you need to feel comfortable with your choices.  When you invest in your financial health and wellness you’ll get a great long term ‘Return on Investment’ in the form of flexibility, stability, strength, and goal achievement…pretty nice.

I’ve gotten a lot of feedback and responses from people over the years about why they haven’t yet taken action on their financial plans.  Here are the top three reasons:

#3  I Don’t Have Enough To Do Any Planning:  I’m never sure where folks get a particular number in their heads about what constitutes “enough” in income, assets, or other measurement to justify planning.  And I’m pretty sure they don’t have a clue either…it just becomes a quick, convenient answer to give.  The catch is that all of our current assets are important to ourselves and those depending on us, and doing the best with what we have at the moment is the key to not just ‘getting by’ but to gaining the self-defined success that would really be meaningful.

#2 Everything Changes So Much It Doesn’t Matter What I Do:  It can certainly be disconcerting to see all the changes going on around us, particularly when there doesn’t seem to be a rhyme or reason apparent, or when we don’t feel that there’s a fair balance to what’s going on.  On the other side, if we regularly give up our voice and our outcomes to external sources (the economy, politicians, others’ special interests, Wall Street, etc) then we’ve lost our precious free will and decision-making gifts that could otherwise help us create at the very least our own personal worlds of enjoyment, and at the most offer some assistance and legacy effect to others.

#1  Fear:  Yes, plain and simple ‘fear’.  It can come out in a number of phrases such as, “I know I’ll make the wrong decision”, or “I’m overwhelmed by all this stuff”, or “I’ll deal with it sometime soon but not today,” and so many other ways.  It’s not easy facing up to any of our fears, but with the right guidance and support you can get the knowledge and comfort you really want – not to mention some really positive benefits.

I learned that courage was not the absence of fear, but the triumph over it. The brave man is not he who does not feel afraid, but he who conquers that fear.”
– Nelson Mandela

 

 

 

I was talking with a friend of mine yesterday who had been kind enough to check out my site and blog for recent updates.  He remarked that he was surprised that none of my posts so far had included technical information or advice like he usually sees on financial pages.  While I’ve written A LOT of technical material over the years, so far I’ve chosen not to take that route on this blog for a couple of reasons:

1)  The clients who are coming to me, and those I want to work with, aren’t interested in trying to find quick tips or one-off pieces of information.  They want someone to understand their specific unique situation and then provide knowledge tailored to their needs.  They don’t have time to waste with generalized lectures nor do they want someone to dwell on standardized answers.

2)  I’m not personally interested in regurgitating statistics and general statements in a format like this.  For example, if someone wants to know the income limits for contributing to an IRA or what the capital gains tax rate is, then the IRS website (www.irs.gov) is a great repository for these facts – and there are several other information-only sites for this research too.  In my opinion, financial planning is a very personalized process, and it’s easy to get distracted by ‘facts’ and whatever everyone else says they are doing…and thereby ignore the tools and solutions that would actually be the best for your own needs.

3)  It’s my belief that unless you know what your own priorities and future vision are first, then all the latest methodologies, charts, products, and trends in the world won’t get you where you want or need to be personally or financially.  We go to professionals such as doctors, veterinarians, mechanics, and others because they know their subject matter inside and out – and even more importantly, they have the benefit of working with hundreds or thousands of clients and can more accurately assess what options could benefit the client that aren’t ‘common knowledge’ or obvious solutions.  And having the benefit of a full financial assessment is miles beyond a quick blog post.

So, if you have technical questions you’d like to ask me when you call or email, I’d be more than happy to answer those directly or point you to reliable information resources.  Meanwhile, I appreciate your comments on the posts as they are published and look forward to talking with you in person soon!