I am showing you the 6 pack of wealth.
You have to spend in this way. Automatically you will become rich.
To ensure your financial planner is well-qualified in personal finances and impartial in his advice, consider the following two things:
1. Planning Credentials: Having a highly-regarded credential in financial planning, such as Certified Financial Planner (CFP) or Personal Financial Specialist (PFS), confirms that the professional you intend to work with has acquired the education and experience necessary to serve as a financial planner. CFP and PFS credentials are awarded to only those individuals who have met the certification requirements of education and experience in planning for personal finances. In addition, they have to pass the certification examinations and agree adhere to the practice standards and continuing education requirements.
2. Subject Matter Expertise: Financial planners are planning professionals, not necessarily subject matter experts. For example, a financial planner will be skilled in tax analysis and planning,but unlike a Certified Public Account (CPA) or an IRS Enrolled Agent (EA) he might not necessarily be a subject matter expert when it comes to tax rules Similarly,a he could be skilled in chalking out an investment plan, but unlike a Chartered Financial Analyst (CFA) he may not be an authority in the subject of investments. Work with a financial planner who is also a subject matter expert in those areas of personal finance that are important in achieving your financial goals.
1. Stocks: Should you invest in the stock market, and, if so, how should you make the decision, as to your approach! How much risk, are you willing, to assume, and, can you afford? If you take a risky approach, while the potential, may be higher, but the potential, to lose, is higher, also! Should you buy blue – chips, small – cap, large – cap, dividend – focused, individual, stocks, and/ or, mutual funds? What are you seeking, to achieve, and what is your willingness, to accept risk? Never invest until you know, your personal objectives!
2. Bonds – government versus corporate: While, a stock represents, partial ownership, in a corporation, a bond, is a debt obligation! While, bonds may have lower risks, in many cases, that does not mean, they are risk – free. Between the time, one purchases a bond, and it comes due, the price may, and often, does, fluctuate, and, thus, if one needs liquidity, that may be a factor! In addition, it’s important to realize, bond interest rates, depend on many factors, and, that rate is usually, dependent on other rates. Because government bonds, are considered, lower risk, as well, as tax – free (wholly or partially), they generally pay, a lower rate, than corporate ones!
3. Bank/ Insurance: Parking one’s funds, either in the bank, or buying insurance, are considered, safe, secure vehicles. However, the rate – of – return, is often lower, and some bank and insurance vehicles, are far less liquid, than others!