Core Principles of Financial Counsel
1. We are not permanent owners of our financial resources
Beginning with the end in mind is a core success principle that allows us to think more deeply and clearly about why and what we would love to do which clarifies how we ought to be doing it.
2. Set long-term written financial goals
Just as successful charitable foundations establish a written “spending plan” and an “investment policy statement,” so too might we think in terms of establishing a written spending plan and formulating a written investment policy.
3. Spend less than we earn
Almost universally we desire serenity in our lives. Overspending is a certain destroyer of serenity.
4. Avoid the use of debt
Debt, like overspending, is a destroyer of serenity. We favor crafting plans to eliminate debt.
5. Build liquidity
Liquidity promotes the psychological return of serenity. It is not that liquidity is the sole source of serenity….but illiquidity can be a destroyer of it. We favor planning for high levels of liquidity.
6. Give generously on a systematic basis
Almost nothing can bring about the same sense of contentment which can be derived by giving time and treasure on a generous and systematic basis to one’s family and to the greater good of society.
7. Maintain a long-term perspective
It is a stunning fact that a child born today has a life expectancy of age 100. A fifty-year-old couple has about a 50% chance that one of them will live to age 100. A long-term perspective is essential to successful life planning and financial management.
8. Diversify
Thoughtful, non-correlated diversification is the foundation of great wealth preservation planning. Diversification is yet another source of serenity.
9. Use professional counsel
Professional counsel offers a fresh and informed perspective which assists with making confident, researched and quality decisions about what matters most.
