Developing a Financial Strategy Part 2

When you walk into a bank, it is divided into two sections. Most people, that is what the bankers see as the “common folks,” go into the line and wait for a teller. However, the people with money go to the other side and sit down with a financial strategist or money manager who personally helps them. What side of the bank do you want to go to?

When I wrote the first part of this article in September of 2022, the mortgage rates were under 4%; now they are almost double. According to Freddie Mac’s reporting, the average 30-year rate jumped from 3.22% in January, 2022 to a high of 7.5% at the end of November 2022. Making houses unaffordable for most Americans and businesses in dire distress. Folks we are in a recession due to the Fed raising rates making it hard for businesses to borrow and move money. The exact same issues we had in the late 1970s that caused Stag Inflation! Now it is even more imperative to have a Financial Strategy.

We have the perfect storm of inflation and job losses because of the government’s incompetence to raise the Fed Rate while the media blames false and non sequitur causes.

Here are some questions to consider securing your money:

• Would you rather put your money in a bank or place it where the banks put their money?

• Would you rather have your money be taxed now at a lesser amount or taxed at retirement at a bigger amount when you need it the most?

• Would you rather have guarantees in your retirement savings account or take the risk and lose most if not all of it? That is what most people do, and they will have nothing when they need it the most.

• You probably have no guarantees on your money now; how do you feel about that?

Now it is imperative to have a Financial Strategy.

A Finance Strategy is a method to plan your business or family’s financial function based on a roadmap with a well-defined vision and strategy. This helps you build on expectations, performance, and capabilities so you can focus on opportunities to meet your vision and or create value. That is, what do you want your business to perform at, and what do you want your retirement to look like?

Here are the Lanes to that Financial Roadmap:

• Review your household budget and spending. If you do not have a budget, then you have a big problem. Get on a budget!

• Focus on clearing out your unsecured bad debt. That is high-interest credit cards first, then car loans, then tackle your mortgage.

• Manage your cash flow; more money needs to come in than what goes out.

• Create a savings plan; put away money for retirement in an account that will not lose money when the market goes down. Because you do NOT recoup your loss; rather, you restart at the point of your loss.

• Focus on building your future and how you expect to fund your future plans.

• Have reserves. Businesses that survived the pandemic did two things; they had money reserves and or they pivoted. Like a restaurant having takeout and curbside pickup versus ones that just closed.

• Be on the lookout for any financial implications to your strategy, like college for kids, medical, or trends for a business.

• What financial risks may upset your strategy?

Most Financial Advisers will ask you how much money you have. If you do not have enough; they do not want their time wasted! If you have money, they will ask you, “do you want your money in a conservative, moderate, or aggressive account?”Then, they will ask you, “when do you want to retire?” Then, “how much money do you want monthly?” Then, they come up with a plan that is predicated on market growth and loss.

People are conditioned to go to a Financial Adviser only when they have a lot of money to invest. Do not do this. We can help you!

Likewise, most of us are captive to one company and represent that company and not you the client!

I am different. I am a Fiduciary.

A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties. Typically, a fiduciary prudently takes care of money or other assets for another person. Thus, I represent you, and I look for the best companies and plans that do not lose your money. I will do for you what the big firms do for the upper 1%; you know that that other side of the bank.

If you already have an advisor; that is great; what do they do for you? What are they doing about safeguarding your money, what you do not want to lose? I specialize in saving, making, and protecting your money. So, you are not gambling with all of your money! I can also provide you with services others cannot.

I work for you, not a company, I will have your best needs for your benefit!

I will sit down with you and come up with a plan that fits you best whatever financial bracket or how much you have to invest! And, I have the plans the 1% use that does not lose money. You can do what the uber-rich have, which that been around for over two hundred years.

If you have lost ANY money in the past few years, even in 2008, 2000, or 2020; I can help you so that never happens again!

You are worth my time! I am here to help you!

Developing a Financial Strategy Part 1

Dr. Richard J. Krejcir is a licensed and experienced Financial Consultant with over thirty years of experience. He has worked for major banks, insurance companies, nonprofits, and families too. He is also an author, pastor, and financial blogger and holds a doctorate in Stewardship.