Sierrastyle's Luxury Living - 72

INTENTIONAL PLANNING BUILDING A SOUND INVESTMENT HOUSE Most people need
some help with their investment decisions. The majority of us is so busy
making the money that we don’t have the time, motivation or expertise to
research every vehicle. As a financial advisor, I can say with certainty
that there are plenty of people who can offer advice on how to invest your
money. But finding the right financial planner, advisor or investment
manager isn’t going to help you take control of your financial life.
Only you can do that. And you’ll want to do that because no one cares
about your money as much as you do. Building a solid fiscal future
requires a blueprint – a comprehensive strategy that starts with a clear
vision of why you’re saving money and then outlines the steps and the
timeframe needed to achieve those goals. Start With the Goal The
accumulation of money and wealth in and of itself is not a worthy goal.
After all, if you build up a sizable nest egg but do nothing with it, what
is the purpose? My point is, saving and investment goals should be based
upon the final outcome – namely, how the money will be used. The other
evening I visited a friend at his home. As I drove up, I noticed there
were no lights on outside; it appeared as if no one was home. My friend
was indeed home, but he had turned the lights off to save money on his
utility bill. In fact, all the lights were off, with the exception of o n
e light in the room he was using. Furthermore, his house was cold. His
only s o u rc e of warmth was a small space heater, around which he and
his wife were huddled. He didn’t run his heater because he didn’t want
to pay a large gas bill. This example may seem extreme, but it illustrates
the point: if your goal is to build your net worth at any cost, what will
you do when you have achieved it? Will you enjoy it by spending it on
yourself and others? Or will you live like a miser, only to pass on your
wealth when you leave this world? B e f o re you invest in anything, you
should determine how you plan to spend your hard-earned dollars. Will the
money be used for retirement, traveling, or college expenses for the
grandkids? Step one is to shift the objective from emphasizing the numbers
to focusing on the benefits created by the numbers. Simplify Investments
Here’s a key insight: just because you increase your net worth does not
mean you need to complicate your financial portfolio. Frequently I see
people whose time is consumed by keeping track of their investments. If it
feels like your investments own you, rather than the inverse, it’s time
to make a change. While at a party recently, a neighbor told me he had 11
separate limited liability companies LLCs , one for each of his real
estate holdings. Even though this gentleman was retired, allotting him
more time in his schedule, he complained how complicated it was to keep
track of everything. In response, I questioned the need for so many LLCs,
as one or two could probably accomplish the same objective, particularly
if enough insurance was in place to reduce 72 Sierrastyle's Luxury Living
March/April 2007
Sierrastyle's Luxury Living

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