By now you know me, and you know that I may have been a little reckless in my physical life – entering karate competitions, flying helicopters, riding motorcycles, sky diving, bungee jumping, and rappelling from arena rafters, to name a few of my favorite excursions. But when it comes to my fiscal life, I’m a cautious and conservative investor. And when I evaluated financial advisors, I sought an individual with a like mind but an experienced financial brain. I suggest you do the same.
Even though I hired an astute financial advisor from UBS, Matt Shafer (who has introduced me to the power of leveraging my portfolio without liquidating my investments in the creation of my Pirate Soul museum and Rum Barrel restaurant/bar in Key West), I’ve never forgotten my dad’s sage advice: the safest way to double your money is to fold it in half and put it back in your pocket! I can hear my dad to this day, saying: don’t spend it, save it!
But to effectively save money, you must make money, and then know exactly where your money is and how you plan to spend it. Now I’m not a certified financial advisor, nor do I pretend to be. But I do believe the basics of a personal financial plan should be to spend less than you gain and invest the difference and should include at least four personal financial statements within easy reach of your fingertips.
The four personal financial statements that I regularly update and peruse are: a net worth statement, a budget, a financial vision statement, and a credit report. All four tools can help you adhere to the number-one secret of gaining wealth: spend less than you earn and invest the difference.
Now, should you be in the envious position to have excess savings to invest – that’s anything over six months’ worth of living expenses in a bank savings account or money market fund earmarked for emergencies – and you want to diversify your holdings, then I highly recommend the assistance of a financial advisor. Think of this person as your personal trainer for your financial fitness. -- PC |
