Taking Stock – 10 Questions To Ask Yourself – First Step In Any Serious Purposeful Plan

Man, the day began with a breakfast meeting, and never stopped from there. Before I knew it, it was after 7, and no post in sight. Then I got to thinkin’ about a few of the conversations today — all of which had a common thread. When asked what their financial status quo was, they could give a kinda sorta soft focus snapshot, but couldn’t provide a sharp picture of their current financial landscape.

I’ll tell you what I told them — “Not to worry, cuz you’re rowin’ a boat with a buncha people. Don’t know ’bout you, but most people don’t really have any more than ballpark estimates of the various ‘folders’ that make up their financial lives. They have things on their daily to-do lists that are more pressing. You know, raisin’ their ankle biters, makin’ a livin’, havin’ fun every full moon or so.

I tell them their homework is to grab a piece of paper and write down the following list, which isn’t close to being all-inclusive, but gives them a more lucid idea of where they might be.

1. How much are we saving per month, after taxes, 401k/IRA contributions, and all living expenses.

2. How much cash is on hand?

3. What’s your home equity? No, really, what is it?

4. Stocks/Bonds/Annuities Other?

5. Do you own real estate investment property? Their equities/cash flow.

6. What’s the balance in your 401K/IRA? How much do you contribute monthly?

7. And my favorite — what ARE your goals? Too ambitious? Not enough?

8. How long before you wanna retire. Be honest — then be real.

9. Do the answers to 7 & 8, put together, make you pee yer pants laughing?

10. What about cash reserves?

Do this at least semi-seriously and you’ll have a better appreciation for what’s possible, and far more importantly, what might be a tad unrealistic. ‘Course, I’ve learned that most folks underestimate what’s possible in their situation. It’s human nature combined with not knowing the answers to questions you simply don’t know to ask.

Call me, and I’ll give you a few of those answers. 619 889-7100 will find me. Have a good one.

Related posts:

1. Real Estate Investment For Retirement — The First Step In A Purposeful Plan
2. Taking The Steps Toward The Creation Of A Purposeful Plan
3. A Purposeful Plan — It Works Every Time
4. Investing Without A Purposeful Plan – Are You At Risk?
5. Taking Your Retirement Plan To Retirement — It’s About Not Letting The Bastards Win.