Jan 5, 2018
Learn about the forgotten little things or hidden gems in your
life and financial life. Along with understanding what your biggest
assets are and how to weave them into your financial plan.
Main Questions Asked:
- What are some of the overlooked financial hidden gems in your
- What are your biggest assets?
Key Lessons Learned:
Your Biggest Assets
- A bunch of little assets added all together. Someone could have
a 401k, along with a bunch of smaller accounts. When you add them
up they might be bigger than your existing 401k or a significant
amount of money. We simplify accounts and get them all into one
- It’s your future savings potential. The younger you are the
more important this situation is. Your biggest asset can be your
future earning potential. This is why disability insurance is so
important. This is a type of insurance that protects your ability
to go out and earn an income. Your future saving potential could be
huge. Future savings may be your biggest asset.
- Social Security. For some people this is their biggest asset. I
have been on Channel 3 news talking about this. People don’t think
of the value over their life expectancy. For me, it is well over
$400,000 for my age and life expectancy. It is so important to look
at it as an asset over the course of your lifetime. Put thought
into claiming benefits and treat it like a valuable asset.
- The house, especially if it is paid off. For people thinking
about downsizing or moving they can pocket money to make an equal
move out of state. This is a significant asset. This is something
to consider as part of a financial plan. This could be a large
- Your 401k. A lot of people aren’t paying the attention to their
401k that they should. If you are picking the best performing funds
over a certain amount of time, you are almost guaranteed they will
become the worst performers. You have to treat it like a big asset
and build an investment plan. Don’t choose the cheapest funds or
for the short term.
- Pension Fund. This could be a valuable piece of your retirement
puzzle. This money could be sitting in a lump sum somewhere. If you
can roll it out to another account you would be better off. This
could be a great opportunity right now to roll it into an IRA and
take control of the money.
- CDs, savings accounts, and money market accounts. A lot of
people have money sitting on the sidelines. Prudent investors know
they don’t want to invest at the top of the market. I wouldn’t have
it all at the bank earning zero interest. Banks are for emergency
savings. Money can pile up and become cash that is collecting dust
without a proper plan.
- Life insurance. An older policy that you have had for years
could be a powerful asset. You can take a cash value of a policy
and turn it into a 5 or 10 year income. Many times the income
interest rates you can get from old whole life or cash value
policies are much higher than you can currently get today, because
of the old actuarial tables. Don’t ignore old life insurance
- Old 401Ks. It makes sense to take this money with you when you
leave the company. Roll it over into your own IRA and take control
of it. You might have flexibility even if you are still with the
company. You need a good advisor that will help you make the best
Links To Resources Mentioned
Money Map Retirement Review
Thank you for listening!