Research now shows that after fees, taxes, and risk, the old are no longer considered best practices. Below are my top new best practices for financial planning success.

Out With the Old

Most financial advisors and financial planners continue to promote their clients utilize tax-infected unsound money investing and sending their wealth outside their household by financing with banks and other lenders. Why? Because they rely on the revenue they receive from these products. Research now shows that after fees, taxes, and risk, the old keys are no longer considered best practices.

Sound Money - Website Header - DO Financial

So, here are my new keys for financial planning success, in no order. At the end let me know if you think I missed one or don’t agree with one.

In With the New

1st 5
  • Don’t be influenced by industry propaganda and marketing. Think for yourself. Challenge what you believe to be true. Many of the things you believe to be true, are not. Rethink your thinking.
  • Avoid being a victim of the Arrival Syndrome. Continually be learning.
  • Have an abundance mindset, not a scarcity mindset.
  • Be grateful, not bitter.
  • Always look for ways to increase your income (legally). The Law of Compensation states you will be paid based on 1. The need for what you do; 2. Your ability to do it; 3. The difficulty in replacing you.
Next 7
  • Save 10% or even better.
  • Start where you are. Don’t wait for all the lights to be green.
  • Don’t be Saver or Debtor. Be a Wealth Creator.
  • Buy assets, not expenses.
  • Acquire the right sound money savings asset before acquiring any unsound money assets. Sound money only increases in value. Contact me to find out what the right sound money savings assets is.
  • Choose assets that earn lifetime compound interest. Albert Einstein says its the 8th wonder of the world. Contact me to find out what the best savings vehicle is to earn lifetime compound interest.
  • Don’t cut down the apple tree. This eliminates opportunity cost. Contact me to find out what cutting down the apple tree means.
6 More
  • Choose assets that provide all the attributes of the perfect investment.
  • Cash is not cheaper than financing due to opportunity cost. Cash usually costs you more than financing.
  • Acquire assets that build increasing credit, not debt. Debt is an obligation through a 3rd party where you are not in control. Credit is access to money on your terms from your sound money assets.
  • Fill prescriptions (recommendations) from your doctor (financial advisor/planner) promptly.
  • Follow the advice of John Ruskin: “It’s unwise to pay too much, but it’s unwise to pay too little too. When you pay too much, you lose a little money…..that is all. When you pay too little, you sometimes lose everything because the thing you bought was incapable of doing the thing it was bought to do. The Common Law of business balance prohibits paying a little and getting a lot…it can’t be done. If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that, you will have enough to pay for something better.

  • The person who has the gold makes the rules. Be the one in control of your assets and financing.Perfect Investment - Header - DO FInancial (2)
Next 6
  • Avoid unsound money. If you do invest in unsound money do so after you have acquired sufficient sound money savings assets. (Unsound money loses value, does not earn compound interest.)
  • Avoid tax-infected assets (RRSPs, pensions) – pay up to 23 times more in tax than the tax you saved, no tax-free access.
  • Choose tax-free assets with no contribution limits.
  • Select assets that provide the opportunity for tax-free income in the future.
  • Choose assets only after assessing their long-term risk-adjusted returns – after fees, taxes. Spoiler Alert: The right sound money saving asset’s risk-adjusted return is 23 times better than unsound money assets after fees and taxes. This means the fees you’re paying for unsound money investing is way more than is considered reasonable for the risk you assume. Contact me to learn what this sound money savings asset is.
  • Don’t deal with banks more than necessary, especially for access to cash or borrowing. One of the hardest lessons to learn about dealing with banks: You have no true power. Banks and lenders hand you an umbrella when it’s sunny and ghost you when its raining. _Bank Run - Blog Featured Image 2 - DO Financial
Last 4
  • Create your own bank (privatized banking) to finance large purchase items, hold your mortgage, investment opportunities, capital for private lending – contact me to learn how, painlessly.
  • There is no advantage paying off mortgage or loan faster if you’re disciplined to save the difference in the payment – acquiring more assets with this money will put you in a stronger position than does less debt.
  • Price is only an issue in the absence of perceived value. Don’t let price be a scarcity mindset.
  • Think three generations ahead. With that in mind: 1. choose assets that provide for enhanced legacy, and 2. share the above with you children, grandchildren, and future generations!

Time for a Change

If you’re tired of continuing to do the same things using tax-infected unsound money expecting different results, its time for you to change horses (or at least diversify with a second horse) and start building wealth and self-financing using tax-free sound money.

Connect with me and lets have a conversation on my new keys to financial planning success.

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