LIVE: Part IIIa: Financial Planning Sailboat

Today, I will align myself with cherishing reality, focusing and having fun , so that I may have the energy I need to enthusiastically, LIVE, love, learn and leave a legacy of excellence.

LIVE: Financial Sailboat: I've decided to digress for this entry from the "physical" to the "financial" side of "LIVE". Health is obviously foundational, but financial security is actually a close second. In fact, without your financial house in order, you won't have time to exercise, money to buy food or take care of health care costs, and your sleep probably won't be very sound, as you toss and turn worrying about making ends meet. Today, I give credit to Brian Burlacoff*, BA, M.Acc., MBA, CFP, CLU, RHU for putting together a simple concept that helps us all to understand the sometimes daunting topic of financial planning. It has been said, that the three threats to our financial security are living too long, dying too soon or becoming ill or having an accident along the way. Living too long means running out of money before we die. Dying too soon, means leaving others who are dependent on us with a loss of income, and unpaid debt, and becoming ill or having an accident can cut off our income as well as bring on significant expense. Brian's concept on how to address these is the Financial Planning Sailboat. A good sailboat has a strong hull, good sails, a rudder as well as safety equipment such as life preservers. The hull represents the emergency fund that we all need: 3-6 months income available in a liquid form for unexpected short term emergencies, such as unemployment, or the transmission on the car needing replacement unexpectedly. The rudder sets the direction and this represents having a proper plan in place that is reviewed regularly (checking the compass or GPS). The sails represent your investments, properly chosen with the help of a competent advisor to suit your goals, and risk profile and they take the sailboat where it needs to go. The safety equipment, proper radio, life preservers and first aid kit, represent the insurance that one needs in case of mishaps. This includes life, disability, critical illness, long term care, home, auto and liability; the one thing you would never leave shore without, especially when your family is on the boat with you. Thanks again for reading!