All of this comes together in what I call the Financial Planning Pyramid. The financial planning pyramid is based on a balance between Risk management, short term savings and long term investments. One cannot have one without the other. The analogy that I use is of building a boat. As you know, the boat has 3 main parts, the hull, the sail and the life preserver. Now we could build a boat with a huge hull, regular life preserver and tiny mast. This boat won't sink, but won't go anywhere either. Or we could build a boat with a huge mast, tiny hull and a regular life preserver. As long as the weather is calm, this boat will really move. However, if the seas are choppy, this boat might sink rather quickly. Finally we could build a boat with a normal sized hull, normal sail, but no or an inadequate life preserver. Should this boat encounter rough seas and sink, with no life preservers, the occupants are in deep trouble. Financial planning is constructing a plan with balance. The hull is having the proper amount of short term savings for emergencies and opportunities, the sail is having mid-term and long-term investments to help get you towards your mid and long term goals, and the life preserver is having the correct amount of insurance (life, disability, medical, long-term care, property and casualty) to protect you and your family.
Phone: 303-394-2332
Toll Free: 866-394-2332
Email: Richard Lerner
Designed & Hosted by Go4it2day Web Services