Is Your Financial House in Order?

Posted by on October 25, 2014 - 8:46 am

After 30+ years of making and losing lots of money, I do believe I’m some sort of financial expert (Heck, I can even say what many others in my shoes can’t – I was wrong!).

I’ve a simple, quick self-assessment that can demonstrate to you if your own financial house is in order. Here it is:

  • I have emergency funds equal to 6 months income.
  • I save 15% or more of my gross income on an annual basis
  • I have eliminated all consumer debt
  • I have adequate property and casualty insurance
  • I am comfortable with the current amount of taxes I am paying
  • My estate plan is current and documented for both state and federal tax efficiency
  • My life insurance and disability is for full replacement value of my income
  • I have adequate retirement savings to provide a guaranteed secure retirement income
  • I have a written investment policy statement that is aligned with my objectives and risk tolerance.
  • My current investment allocations are based upon the efficient frontier philosophy and methodology
  • I know the amount of internal and external fees in my investment holdings
  • I am happy with my overall investment performance and returns


12 out of 12 = Excellent! Stay the course

11 out of 12 = Very good! Update where needed

10 out of 12 = Good. Time for a review and update

9 out of 12 (or less) = Have a complete responsible wealth analysis.

As long time followers of mine know, I believe traditional financial planning will fail or fall short of their desired goals for 99% of all investors who have had a plan done by a financial advisor. The financial advisor who implemented the plan may have done his or her best in a very honorable manner, but the financial services firm that they represent has geared their plans to where they have a much better chance of profiting from it than you do.

I would welcome the opportunity to discuss with you why I believe this is so. Feel free to contact me at any time or 732-642-3992

Posted in: Matters of Finance
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