the living balance sheet

12
An Uncommon Approach to Financial Decision Making

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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 America

TRANSCRIPT

Page 1: The Living Balance Sheet

An Uncommon Approach to Financial Decision Making

Page 2: The Living Balance Sheet

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.

Page 3: The Living Balance Sheet

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...

Page 4: The Living Balance Sheet

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

Page 5: The Living Balance Sheet

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

Page 6: The Living Balance Sheet

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:

Page 7: The Living Balance Sheet

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

Page 8: The Living Balance Sheet

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...

Page 9: 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

Page 10: The Living Balance Sheet

Notes

Page 11: The Living Balance Sheet

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.

Page 12: The Living Balance Sheet

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