Finance Book » Financial Planning

Book Review on Financial Book and Retirement

Tue, 29 Sep 2009 06:13:55 +0000

Are your personal finances in order? Are you saving money and allowing your investments to grow or are you paying heavy interest the wrong way on credit card debt? It matters, and even if you are in your twenties or thirties it still matters. Why? Because the sooner you start planning for your non-working years the more worry-free your retirement years will treat you.

It is for this reason perhaps that I’d like to recommend a very good book to you. It is two decades old now, but it is one of the books I read that helped me retire early (age 39). If you will follow this book and perhaps do a little reading of similar current books, as some of the laws have changed, then together this learning experience will allow you to retire early and carefree too. The book is: “Retire Worry Free – Financial Strategies for Tomorrow’s Independence” by Michael E. Leonetti; Longman Financial Services Publishing; division of Longman Financial Services Institute, Inc, 1989.

Mr. Leonetti, has a financial services and financial planning background and his common sense approach is a breath of fresh air compared to the hype that so many personal financial “How to” books present their information. This book is broken into 2-parts; Part I asks the reader simple questions and then allows them to compare notes as to where they are now and where they need to be. Questions such as:

Do you have a retirement plan? Do you know why you had better?

As well as; How to pick goals, and chart your direction towards retirement and which choices are prudent and why? Thus allowing the reader to create a lifestyle for your later years.

In Part II, Leonetti, associated the reader with key points of contention such as; Understanding risks and How to take financial inventory; how to do Estate Planning and the very basics of Investing. Also are tips on how to live on a budget, within your means, and the art of stretching your money. Please consider this book and the wisdom within.

By: Lance Winslow

“Rich by Choice” by Erlend Peterson – Book Review

Wed, 23 Sep 2009 03:24:28 +0000

Erlend Peterson’s title of chapter one is: Rich or Poor, It’s Your Choice. Throughout the book Peterson gives the reader just that – a choice whether or not he/she chooses to become rich (financially) or struggle without wealth. He claims that “most of the people around you will continue to make the wrong choices.”

Not wanting to be classified as “most of the people” I was eager to delve into “Rich by Choice” to see if, according to Peterson, I was on the correct track. I was also enthusiastic in learning new ways of creating or sustaining wealth. Peterson did not let me down.

One thing Peterson is clear about is that being rich is having $2,000,000 or more in liquid assets – cash, mutual funds, annuities, stocks/bonds, and the cash value of a life insurance policy. It does not mean a huge house, a new expensive car, nor does it mean taking long vacations. Basically, what it does mean is the investments can be sold for cash or left to grow to generate income. Peterson also adds that real estate, which has a net profit of 20% or more, can be considered as a liquid asset.

Peterson’s “Rich by Choice” is a simple tool that is concise and accurate. If using the seven-step plan presented by Peterson, one can’t help but be wealthy. He presents plans for people in the 20-40 year old range with earnings of $40,000, $70,000, or $120,000 per year. His number one step, one that is repeated in most wealth sustaining concepts, is to invest a minimum of 10% of all income. Using charts to prove the simplicity of the concept, Peterson maps out the process using his seven-step plan.

But, this book isn’t only for those in the beginning stages of their life-time financial freedom. Peterson also addresses it’s never too late to start financial planning – yes, even if you are over 50, and/or near retirement age.

In “Rich by Choice” Peterson encourages and motivates readers to look at personal financial practices. He further prompts the reader to set long-term financial goals and put the seven-step plan into motion. How easy is that? It is very easy – it just takes desire and determination to achieve.

By: Irene Watson

Book Review of the Financial Peace Planner

Tue, 15 Sep 2009 09:46:07 +0000

This is a book review of “The Financial Peace Planner: A Step-by-Step Guide to Restoring Your Family’s Financial Health”.

Description: Just as it says this step-by-step guide will help put you on the right track to making the right financial decisions for you and your family. Not only for right now but for years to come.

Review: I was in the book store the other day browsing for a book that might help me with my finances. I wasn’t looking for something that would help get me out of debt or to change the way I had my finances set up, but something that would help make the most of my money. Believe it or not I found this book and it had exactly what I was looking for.

This is one of the most informative books I have read on financial planning. It walks you through some of the most difficult areas in the finance world. I was saving for my child’s college and wasn’t thinking about needing an emergency fund. After reading this book and implementing some of these ideas I have both a college fund and an emergency fund. I’m not even strapped for money doing this.

Everything in this book is down to earth and practical. Anyone can use the information to gain control of their finances. It’s easy to understand and pretty much walks you through the entire process.

It also gives you some confidence in yourself so that you make the right choices. His faith based ideas and the courage to lay it all out there is a confidence builder on its own.

I believe this book to be a good choice for everyone. From the young gun to the older, well balanced person, there is something in this book that will help no matter where you are on the finical scale.

By: Richard T. Tyler

Show Me The Money! – The Financial Truth of New Business

Sun, 06 Sep 2009 10:58:53 +0000

“I want to start my own business and be my own boss!” Sound familiar? It may, because nearly 95 percent of people have this pass through their thoughts at some point in their working lifetime.

“Get rich quick” schemes never work. Yet we are repeatedly bombarded with TV and other advertizing promising us riches and status if we join their programs to gain “financial success.” But regardless of if the program they offer is a valid means of making an income or being successful, the truth is, new businesses rarely show any amount of profit in their first two years.

It has been estimated that as many as 90 percent of new businesses fail in their first year. Lack of planning is the number one cause of new business failure; “financial planning” tops that list. Being financial smart is perhaps your best chance at success. Follow the basic guidelines listed here:

Avoid business loans requiring the collateral of your home. Never mortgage (or sell) your home to finance your business. Never use a credit card to start or operate a new business. Keep your business idea in proportion with the amount of money you have available.

Use common sense; if your means of financing your new business might potentially put a strain on your personal finances, look for other means to support the new venture. One should NEVER try starting a business to “save” a poor personal financial situation, unless the new business requires no monetary investment and can eventually supplement the personal income. Consider a business which utilizes your skills or services and requires little or no financial investment to start.

Be financially prepared to survive your first two years in a new business. Allow for personal income needs as well as the businesses financial requirements. You may need to “keep your day job” until the business gets established.

Better to be one of the 10 percent of new businesses who succeed, rather than facing financial and emotional devastation due to poor financial planning.

Carol Denbow is the author of Are You Ready to Be Your Own Boss? For more on new business start-up or to read about the author, visit www.BooksByDenbow.Weebly.com

By: Carol Denbow