Financial Planning Based on


Principles that simplify the complex financial world

Adhering to the 5 Principles of Personal Finance™ empowers clients to navigate the constant changes in their financial world.

These foundational principles provide them with the knowledge and tools to make better decisions and will lead them to become and remain financially free.

1.Principal One

Save 15% or More of Income

Most people don’t inherit financial freedom. They start by earning money, through a job, a profession, or owning a business. Then comes the biggest challenge, and what Tony Robbins calls “The most important financial decision of your life.” The decision? What portion of your paycheck you choose to keep.

This is much easier said than done. It takes a Profit First (Michalowicz) mentality. To be successful at saving, it must come first. Saving can’t be an afterthought if it’s going to work.

2.Principle Two

Maximum Protection

On our path to financial freedom there are a multitude of issues that can arise and either destroy the plan or seriously impede it. What are those things? Economic recessions, job loss, death, lawsuit, disability, accidents, major health issues, among others. How prepared are most people for those types of events? Not well at all.

There are three reasons people don’t have their maximum protection:

  1. They don’t know their options (financial ignorance).
  2. They think it’s going to cost too much.
  3. They don’t think it’s going to happen to them…at least, not yet.

We take the time and have a clear and organized process for teaching our clients about their maximum, and we give them the opportunity to obtain it. 

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3.Principle Three

Full Replacement of Assets Upon Death

Financial institutions and money managers don’t want their clients to “enjoy their wealth.” Enjoying their wealth would mean pulling it out and spending it for the things it was intended. Enjoying their wealth might mean donating the money to charities, or spoiling grandkids. Nope! When clients use their money, financial institutions and money managers lose revenue.

We help clients understand which strategy is most efficient when it comes to insuring their assets and income. We help them understand how they can better utilize their assets while they are living, versus trapping their money in financial institutions for the financial institutions’ sake. Following this principle gives the client the control and use of their wealth.

4.Principle Four

Build and Maintain Six Months to One Year of Income Storage

In order to have money start working for them, clients must build up liquidity to not only be prepared for emergencies and unforeseen events, but they must also have enough available to take advantage of investment opportunities. Most people never get to the place of having sufficient emergency storage of income, let alone having enough money to participate in the best investments.

Why don’t they? Because they are usually unconscious spenders and they are doing exactly what Wall Street wants them to do, which is to put their money in accounts that are illiquid, unusable, and inaccessible for long periods of time.

Principles-Based Financial Planners™ teach clients the importance of building and maintaining liquidity. They realize that cash is king, not because of the rate of return, but because of the opportunities it presents.

5.Principle Five

Velocity of Money

Contrary to the philosophy promoted by all financial institutions, velocity of money is about cash flow. It’s about getting your money back, as quickly as possible, and then using it again and again. It’s not about “compounding interest” and hoping for appreciation of assets. It’s about putting money into real assets that produce positive cash flow.

Unfortunately for the financial services world, real assets can’t be sold or managed by them. Real assets are one’s own business, one’s own property, one’s own profession, and one’s own ideas. The tax code was made for people who invest in real assets, and it was written against those that do what financial institutions want them to do.

As a Principles-Based Financial Planner™ we teach our clients that financial freedom is the objective, not retirement. Financial freedom is achieved by having assets that produce sufficient income to sustain or even improve a person’s lifestyle.

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