the living balance sheet
DESCRIPTION
The Living Balance Sheet® and the Living Balance Sheet® Logo are registered service marks of The Guardian Life Insurance Company of America (Guardian), New York, NY. The graphics and text used herein are the exclusive property of Guardian and protected under U.S. and International copyright laws. Guardian, its subsidiaries, agents or employees do not give tax or legal advice. © Copyright 2005-2012, The Guardian Life Insurance Company of AmericaTRANSCRIPT
An Uncommon Approach to Financial Decision Making
Find Real Balance . . .. . . to protect against the unexpected while growing your wealth.
An Uncommon View . . .. . . to challenge traditional thinking and offer a refreshingly new approach to financial decision making.
1
Today,>90% of the wealth in the country
is owned by<10% of the people
This smaller group thinks about money and wealth building in an uncommon manner.
Learning their secrets may be the key to unlocking your full financial potential.
“My money only needs to keep pace with inflation.”
“I will be in a lower income tax bracket at retirement.”
“My 401(k) plan creates a tax savings, which can be spent or invested.”
“Compounding interest creates a financial miracle.”
“I won’t need life insurance when I retire.”
“A 15 year mortgage costs less than a 30 year mortgage.”
“Disinvesting is the same as investing.”
“Rate of return on my assets is more important than regular savings habits.”
“To increase protection, my cash flow will suffer.”
Common vs Uncommon...
Common Financial Myths...
2
Goal Incorrect
Inefficient
Requires Guesswork
Promotes Risk
Linear Math
Minimum Protection
No Financial Cushion
Reviews & Updates
Problems:
Goal = Time x Money x ROR
Financial Target
College?
Retirement?
Death?
Traditional Needs/Goal Planning
3
Financial Disorganization: Multiple financial institutions, constant change, bias, hype, inefficiencies, money locked up, confusion, costs, penalties
Real Cost of Living: Inflation, PLUS taxes, new inventions, things wearing out, support for children, improved lifestyle, unexpected life events
Failed Products and Strategies: Compound Interest, credit card debt, subprime, low savings, high risk asset allocation, term and invest difference, misuse of qualified plans
Threats to Your Money:
Goal = Time x Money x ROR
Financial Target
Optimal Results
Actual Results
Impact of Needs/Goal Planning
4
LiabilitiesAssets
We start with your BALANCE SHEET...
...And then add your PROTECTION and CASH FLOW
decisions, to create a WIDE ANGLE VIEW of your finances
The Real Goal: To move toward, and then maintain,
an improved level of FINANCIAL BALANCE
Net Worth
Liabilities
PROTECTION
CASH FLOW
Assets
Net Worth
An Uncommon Perspective:
5
Four Interdependent Domains
Financial Balance Rules
Protection
Cash Flow
First Priority
Full Replacement
Lifetime Coverage
Rate of return
Minimal risk
Avoid taxes
Liquidity
Eliminate debt
Avoid taxes
Mortgage selection
Redeploy Income
Minimize protection costs
Improved savings
Lower debt and taxes
Budgeted lifestyle
Liabilities
Assets
Achieving Financial Balance
6
Optimal Financial Balance
Economic Based Financial Rules
Efficiency/Cost Avoidance
Results:
Wide Angle View
Lower Risk
Assumes Unexpected Life Events
The Living Balance Sheet...The Living Balance Sheet...
CASH FLOW
Gross Income Protection Assets Liabilities Net Income
Client Name (First/Last):
Health and DisabilityInsurance
LegalDocuments
LifeInsurance
Property and CasualtyInsurance
PROTECTION
ASSETS
Investments
Retirement
Real Estate
Business
Savings
Total
Personal Property
LIABILITIES
NET WORTH
Mortgages
Business Debt
Total
Taxes
Short Term
Spouse’s Name (First/Last):
Date of Birth/Age: /
Date of Birth/Age: /
Client E-mail: Spouse E-mail:
Total Maximum Health Coverage
Total Monthly Disability Income Client A:
Total Monthly Disability Income Client B:
Death Benefit Client A:
Death Benefit Client B:
Gross Income Client A:
Gross Income Client B:
Income Tax:
Short Term:
Mortgages:
Business Debt:
Quick Facts
Notes
The Living Balance Sheet Design Tools
Data Gathering Simple to complete Fact Finder auto-populates a series of reports, calculators and vignettes.
Strategic Solutions Your Financial Representative is fully equipped to offer creative strategies and solutions designed to improve financial results.
Action Steps To assist with implementing financial decisions, The Living Balance Sheet instantly creates an Action Step Score Card. Once established, automated alerts
track changing financial circumstances.
Pub 5393 (05/12) 2011-1229
The Living Balance Sheet® displays the financial holdings identified by the client based upon information and valuations provided directly by the client or by electronic feeds from the client’s financial institutions. Valuations provided by electronic feeds reflect the most
current information provided by the financial institution as of the date and time noted, but can reflect valuations from an earlier date and time.
The Living Balance Sheet® and the Living Balance Sheet® Logo are registered service marks of The Guardian Life Insurance Company of America (Guardian), New York, NY. The graphics and text used herein are the exclusive property of Guardian and protected
under U.S. and International copyright laws. © Copyright 2005-2012, The Guardian Life Insurance Company of America