Financial Planning as a Million(Billion?)aire

If you are like just about everyone else on the planet, your goal is to become a multi-millionaire one day so that you may live the life of which you dream. Heck, that’s the reason I started this website and the other dozen or so sites I run. Well, once you get there, financial planning becomes even more important than planning how to get there was. You WILL have an estate to leave behind when you go to meet your maker, and unless you want the government to totally mishandle it and screw your relatives out of their fair share, then you had better make sure you have your wishes in writing. This article, by William Hayes, does an excellent job of pointing out the reasons why even millionaires MUST engage in financial planning.

How Do Millionaires Do It?

By William K. Hayes

According to Slate magazine, there are now 8.9 million American households with assets over $1 million, excluding their homes and retirement funds. Dr. Larry Samuel of the consulting group Culture Planning breaks them down into five basic groups:

• Thrillionaires. These millionaires live on the edge, consuming conspicuously. They’re more likely to be found rolling the dice in Las Vegas than taking a family vacation. While they’re not impulsive, they take calculated risks. Think: Donald Trump.

• Coolionaires. These millionaires live in the cultural centers and support fine art, architecture, and other expressions of creativity. They probably acquired their wealth through a combination of innate talent and an extraordinary amount of hard work. Think: Steve Jobs, founder of Apple Computer.

• Realionaires. These unassuming millionaires live ordinary lives. They do not like to spend money unnecessarily. However, they do spend money on their priorities, like education. These millionaires may be the “Millionaire Next Door” as described in the book by Drs. Stanley and Danko a few years back. They are hard working and down to earth. Think: Warren Buffet.

• Wellionaires. They value their spiritual, mental, and physical health. They are open to new ideas and methods, which may be how they acquired their wealth. Think: Mark Hughes, founder of Herbal Life.

• Willionaires. Their wealth is often inherited and they view it as a sacred trust. They view their wealth as a responsibility to better their environment. These are the philanthropists. Think: David Rockefeller.

While these millionaires vary considerably from one another, they all have one thing in common: planning. It has been said that those who fail to plan, plan to fail. Whether you are a millionaire or aspire to be one, planning is the way to achieve your financial and life goals.

As with most endeavors, planning is essential when it comes to deciding what should happen when you are gone and how to deal with that eventuality. Will the kids be taken care of? What if my spouse remarries? Will I pay too much in taxes or expenses? What if my family fights over my estate? If you start now, you can make that eventual transition smoother and less traumatic emotionally and financially for you and your family.

A qualified estate planning attorney can help you set up a plan that will put your mind at ease. Taking care of matters now can avoid big messes down the road when you are incapacitated or after your death. You will know that things are taken care of and you can concentrate on more important things, like creating memories with your family.

American credit cards are used by Americans as a financial tool but still they are not regularly paying their charges. Bankruptcy financing is financing provided to assure that your creditors are “hosed” after your equity position has been smashed. There is cheap insurance that is given to customers but still it should be taken care for fraud insurance. The home business makes you earn a lot by making accurate decision about your home business but you have to finance this business initially. There is always a home based business opportunity to start a business at home. It is significant to formulate right choice earlier than taking decision regarding the type of business to be started. A loan requires some interest as well in return but it is not necessary in every case. The debt management is to offer proposal and information on set up, improving, and fix financial matters.

I would be willing to bet that nearly every single one of us out there has a long-term goal of

We all have to face the prospect that we will reach a point, eventually, where we will no longer be a choice but to get our heads around it.

Recent Posts