We want to acknowledge the position of a father- the head of most households and patriarch of the family. We want to say thank you for taking on the reigns of being a father. You are one of the providers for the needs of your family and a breadwinner. Your influence and presence as a father is pivotal for the foundation of your family. Families with a father provide stability and future confidence alongside the mother for children as they grow. Your consistent presence is a cornerstone in building a solid foundation in the family, and helping your family develop a wealthy mindset helps to add to that foundation. To help continue to efficiently provide for your family, it is vital to understand the importance of Financial Freedom and how to effectively attain it.
Budgeting – Telling your money where to go instead of wondering where your money went.
- 10% – Tithe: Giving Back, Charity, Donations
- 15% – Pay Yourself: Savings, Investments, Retirement
- 50% – Living Expenses: Mortgage, Utilities, Groceries
- 25% – Flexible: Shopping, Vacations, Eating Out
Build Wealth – Allow compounding interest to work for you over time.
Proper Protection – Obtain Life Insurance as a defensive strategy to protect against loss of income and other financial needs that arise after one’s passing.
Emergency Fund – Set aside at least 3-6 months of income to prepare for unforeseen expenses such as medical bills, unemployment, car repairs, property damage etc. This fund will allow you to recover from an emergency without derailing your financial strategy or forcing you into debt. When the inevitable occurs and you dip into this account, you must immediately rebuild it until it’s full again.
Debt Management – Make a list of your debts, outstanding balances, interest rates, and monthly payments. Eliminate debt using an effective strategy.
Preserve Wealth – Reduce Taxation to control how much money you keep. There are 3 ways your money can be taxed: Tax Now, Tax Deferred and Tax Advantaged.
- Tax Now: Taxes paid yearly on interest, dividends and earnings. (Mutual Funds (b), Savings Accounts, CD’s)
- Tax Deferred: Taxes paid when you take distribution in retirement. ( IRA, 401K, 403b,TSP, Annuities)
- Tax Advantaged: After 59 1/2 Roth earnings/distributions are not taxed and Cash Value Life Insurance has similar tax advantages. (ROTH IRA, Cash Value Life Insurance Contracts)
An Estate Strategy protects generational wealth. There are documents your estate strategy should include:
- Will: Identify a guardian for your minor or special needs child and how to set forth how your property should be distributed.
- Health Care Directive: Identify who will make health care decisions on your behalf if you are unable to.
- Power of Attorney: Identify who will handle your affairs (bills, taxes, insurance, etc.) if you’re unable to.