The Efficient and Effective Use of Your Current Cash Flow

We think using a financial advisor is like having a new set of eyes watching your money. But how do you determine if your advisor is not only watching your money, but also making sure it coordinates with all of your other assets? Three ways to help you accomplish this are: 1) Determining what the most efficient use of one’s money and how to achieve it 2) Taking opinion out of the equation and 3) asking the right questions.
Let’s explore each of these below.

1. Determining What is and How to Achieve the Most Efficient Use of One’s Money:

What do we mean by efficient and effective? Considering the efficient use of your current cash flow, we look at your entire financial life and help determine if your money is going to the right places at the right time. A 20-year-old needs to be looking at their money differently than someone in their 50’s. Someone in their 30’s needs to be investing their money differently than someone even in their 40’s. Understanding life demands for each person in conjunction with their age helps us begin to understand the most efficient way for each person to coordinate their assets. For most, ultimate goal is to maximize income efficiently at retirement. Using this methodology, and by simply coaching people, we have found through cash flow and coordination of assets we are able to help people accumulate and have a better lifestyle with no additional out of pocket outlay throughout the accumulation and distribution phase of planning.

2. Taking Opinion Out of The Equation:

Another way Premier Southwest Planning Group helps ensure that your money works together for you is by removing the word “opinion” from the equation, including your own. This is accomplished by creating a plan for each of our clients that includes an analysis using economic models based on fact not opinion. For example, just as a structural engineer stress tests the various components of how a bridge will endure a wide variety of stresses and circumstances, we do the same in regard to your finances. Using various financial planning models, it is our goal to create a plan together with our clients that aims to provide the highest opportunity for success (higher retirement income, college funding, wealth building, etc.) and the lowest chance of failure. We act as the educator; you act as the decision maker. Our goal is to make sure you are aware of all the factors that affect your money. For example, taxes, your standard of living, inflation, planned obsolescence, market risk, death, disability and health, creditors’ claims or lawsuits and even technological change. We strive to give the most objective and straightforward advice to everyone we meet with.

3. Asking the Right Questions:

Like everything in life asking the right questions can be crucial, and of all the important questions to ask regarding your finances, we feel one question is crucial. Have you considered there are three stages to life?  They include accumulation, distribution and preservation.  If a plan does not consider all three of these life stages, and all the things that eat away at your money (see above) in each of these stages from the onset, how can you be sure that it will work in each of these stages?
Hopefully this helps shed some light on how we at Premier Southwest Planning Group, LLC strive to ensure you are in the best position possible to succeed.