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Oct 10, 2017

Keeping Score

Summary:

 

In this episode, the Bush brothers, Bill and Pete of Horizon Financial Group, list and explain the 8 categories of their Confident Wealth Scorecard. Filling in this scorecard helps an individual outline their personal and financial vision for the future. Oftentimes, business owners compare their success with others as a means to determining how well they are doing. This launching pad and tool will help you assess where you ARE and where you WANT to be in relation to your own personal financial and personal goals. The wheel emcompasses risk management, tax efficiency and wealth building to name a few. Tune-in to learn how to achieve balance in all 8 categories of the Confident Wealth Scorecard and some great insights to help you to do just that.

 

Show Notes:

 

  • Today, we will discuss the Confident Wealth Scorecard for business leaders

o     Helps gauge the level of confidence in specific areas of wealth management

o     Consists of 8 categories and multiple questions

o     Risk management is the first and foremost important category for most people

o     Tax efficiency is the second category; maximizing deductions by working within the rules that IRS has set forth

o     Business Continuity and Estate planning is the 3rd category; important to plan for succession since 80% of a business owner’s assets are often tied to their business

o     Wealth Building is the 4th category; this involves accumulating investments and setting up lifetime income streams

o     Cash Management is the 5th category which deals with budgeting and planning your expenses; understanding how leveraging impacts your life

o     Sharing success is the 6th category; successful people like to share their success with families, communities or charities

o     Overall Coordinated Plan and Vision is the 7th category; gauging your confidence with regards to getting to your financial goals and realizing your vision

o     Leading a Balanced Life is the 8th and only qualitative category in the wealth scorecard; people tend to sacrifice their personal life or health in order to achieve their financial goals

  • A thinking tool and a launchpad to help you plan your financial and personal life in a better manner
  • People have a tendency to score themselves outwardly by comparing their financial success with others; a much better way is an innate scoring mechanism
  • Business owners, CEO’s and CFO’s will find a lot of value by completing the scorecard

o     Helps overcome inertia and sets people towards the next steps that they need to undertake to achieve their financial goals

o     Wealth management is a personal thing without a fixed, definitive answer; the scorecard is helpful since it covers a wide gamut of topics

  • Analyzing the 1st Category: Risk Management

o     The first question gauges the likelihood of your business surviving your death; you can assign a score of 1 to 3 with 3 being the highest possibility of survival

▪       Often business owners have not even thought about getting risk insurance; people who have risk insurance might be paying more than what they should be paying

o     Important to structure a buy-sell arrangement and funding mechanism in case of a business partner’s death

o     Need to review policies at regular intervals to ensure that you are getting the best possible deal

o     Poor communication and over-confidence are reasons for poor risk management strategies; a financial advisor can look at your OVERALL financial situation which enables you to get a bird’s eye view

o     Categorize questions if your financial advisor and insurance provider is proactive in doing an annual review of your insurance plans

o     Possible to add comments in the scorecard if you seek clarification with a particular question

o     Knowing that you are annually reviewing, updating your risk management plans, and keeping them attuned to your life’s changes will give you confidence with regards to your coverage

o     Asking, “Do you know?” often leads to “I don’t know”—the scorecard is the first step in plugging these gaps

  • On the paper version, you can plot your score on a wheel; if you are supremely confident in all 8 categories, you will score a 12 which will be well-rounded financial wheel that rolls perfectly
  • In the next episode, we will talk about tax efficiency
  • Shoot us an email to receive the PDF version of the Confident Wealth Scorecard in your inbox
  • Check out our website to know more about our team and our various services

 

3       Key Points:

 

  1. The Confident Wealth Scorecard is a thinking tool and a launchpad to help you plan your financial and personal life in a better manner.
  2. Often business owners have not even thought about getting risk insurance; people who have risk insurance might be paying more than what they should be paying.
  3. Having a scorecard helps you overcome your inertia and sets you onwards to the next step that will help you achieve your financial goals.

 To use the Confident Wealth Scorecard online, click here.

 

Securities and advisory services offered through Cetera Advisors LLC, member FINRA/SIPC. Cetera is under separate ownership from any other named entity.