Brian Livesay San Diego Financial and Tax Planner says “I like to think of a holistic approach, combining many important areas of finance into one life-plan. Not just financial planning, but a system more aptly described as Life-Planning.”
When you combine three components, tax planning, retirement planning and risk-reduction you get what can best be called a “Tax-Free Retirement Income System” and that is Life Planning.
The most important component of your life plan is risk reduction.
Start your plan with risk-reduction because no matter how great your track-record of building wealth is, your approach must provide more safety and security than traditional financial planning.
For the most part, the way risk management is addressed in financial planning is something like: “You’ve got this nice little pie chart here; you’ve got so much in these different types of investments, x amount here in small-company stocks, in mid-company stocks, growth and value… and there’s a little bit of bonds in there too, so that should significantly reduce the risk for you.”
Unfortunately that is not always the case, and as a matter of fact there are far too many people who are positioned in high-risk portfolios right now. Because we’ve had a five year market run-up, too many people underestimate their level of risk, focusing on the opportunity cost of exiting the market, rather than the peril of having most or even all of their assets in fluctuating investments, with no downside protection. You must implement real, tried-and true methods to reduce your risk and plan a lifetime of income you can never out-live.
Another important part of Risk-Reduction is protection from financial catastrophe that often devastates individuals and their families due to critical, chronic, or terminal illness. Right now, 3 in 5 bankruptcies in the United States are filed due to medical reasons. Simply put, if you can’t work, you can’t pay; if you are responsible for your family, an elderly parent or grandparent, it’s even more devastating.
When it comes to Life-Planning, this problem is not just a pothole or another bump in the road. It’s a sink-hole and one that most people will never climb out of. Your life-plans must equip you to handle future medical costs while building wealth at the same time. That adds up to greater peace of mind and enjoyment of life in the present.
For more about and by Brian Livesay go to Small Business Trendsetters http://smallbusinesstrendsetters.com/brian-livesay-san-diego-financial-and-tax-planner-death-and-taxes-not-inevitable/
or CNN iReport http://ireport.cnn.com/docs/DOC-1146662
You may also contact Brian Livesay in his office at 1761 Hotel Circle S., Ste 360, San Diego, CA 92108
Or by Telephone 866-726-0725