A Center for Talent Innovation (CTI) research study found that both men and women view wealth as a way to provide them with financial security and independence. But after those goals are reached, women want their wealth to provide for society at large. The POWER steps below work for both men and women. The point is to employ a plan. A plan is your key to financial security, independence and more. Fifty-three percent of those women surveyed said they did not have a financial advisor. Of those who did have a financial advisor, 67% said they felt misunderstood. This translates into underleveraged assets which represents a lost opportunity for women to meet their hopes and dreams.1
In my practice at Maxima Wealth Management, I guide all my clients through the steps below. I highly recommend you establish a relationship with a financial advisor who will walk you through these steps or steps similar as you realize your POWER. Recognize what’s important to you in a relationship (i.e. understanding, trusting, educational, 2-way communication), interview a few options and pick the advisor who speaks to you.
In my opinion, the foundation of all financial plans is to clearly assess your current financial situation. This will include creating a balance sheet that shows your assets and liabilities, completing a budget as an honest picture of where your money comes from and where it goes and accomplishing a risk tolerance questionnaire. The first step of most important projects can seem overwhelming, but I promise you once you accomplish the above-mentioned tasks the remaining steps emPOWERing you to financial freedom are less complicated.
Objectives and Goals
Now, I didn’t say the next steps wouldn’t require some thought, but hopefully this step is fun and inspiring. Once you’ve clarified your current financial situation, the next task is to specifically identify what your goals and objectives are for your future. This includes exploring and understanding what your values, lifestyle and attitudes around money are. It’s also your opportunity to put on paper what your dreams are, what your hopes and fears are and what you want your legacy to be. This task is where you get to define your POWER. Embrace it.
Willpower, Discipline and Dedication
This next step can sometimes be the most difficult but you can recruit support. Once your personal plan has been developed, you will need to vow to be disciplined and dedicated to stay on track. Willpower is key and you must pledge to yourself to exercise it. If you are devoted to meet your goals and objectives, you will be successful and realize the POWER you have.
As with any goal in life (i.e. weight loss or preparing to run ½ marathon), strength and support can be key to ensure you overcome any challenges along the way. This is when having an effective financial advisor can be your most intangible strength. As with any important and long-term relationship, I recommend you choose a financial advisor who understands you, who you trust, who communicates with you in your language, who will cheer you on to meet your goals and who will guide you through the difficult times. In my practice, I devote the first meeting with all prospective clients as a time of introduction and “getting to know” each other. It is very important to me for my clients to trust me and to be comfortable with my style. In turn, I want to be comfortable with my clients and their expectations. I commit to be their advisor and cheerleader and this doesn’t always stop at the door of investments.
Execute the Plan
The next step is to put your plan in play – execute it. This may require completing paperwork and establishing automatic investments or expediting a more aggressive payment plan for your liabilities, i.e. mortgage. Once this step is complete, you are on the road to the financial future you’ve envisioned.
This final task is one that will be ongoing. Periodic review of your progress enhances the achievement of your goals/objectives. And, with so many things in life, your situation may change and new challenges or opportunities could emerge causing your plan to be revised accordingly. So, make sure you get with your financial advisor and review your plan periodically.
If you need a financial advisor or know someone who would benefit from one, please send them my contact information along with this blog.
1 Harnessing the Power of the Purse: Female Investors and Global Opportunities for Growth, Talentinnovation.org/_private/assets/PopHealthcare_ExecSumm-CTI