You Need Wealth Protection Planning
Finding Your Personal Economy

To preserve and build wealth, you must focus on your Personal Economy.  It's Your Economy That Counts.

As a result of the bull market of the last decade, Americans have become obsessed with the stock market and the nation's economic performance.  Nearly 50% of Americans now have some sort of investment or retirement fund linked to the stock market.  CNBC, market updates, and "fed-watchers" have become as ubiquitous presence in our lives. Tracking the "health of the economy" is a daily soap opera and the "experts" on talk radio and TV are household names. According to experts, the ups and downs of the market create a "wealth effect" on how positively or negatively we feel about our own economic status.  If the market is up, we feel wealthy (as in 1999). If the market is down (as in 2000), we feel poor.  Are you susceptible to this phenomena?

Here's a quick test: Assume CNBC is reporting the following stories:

1. Experts fear the Economy is sliding into a recession;

2. The DOW dropped by 20%;

3. The NASDAQ closed down 300 points;

4. Alan Greenspan appeared on Capitol Hill and announced another change in the "prime" rate.

At the same time:

1. A little-known change in the tax law eliminates a large deduction your business had been taking;

2. Your mother was just diagnosed with Alzheimer's and there is little savings and no long term care coverage to pay future medical bills;

3. Your accountant has informed you that you failed to heed his advice about retirement plan taxes upon distributions;

4. You need back surgery that may prevent you from traveling for work.

Which events are REALLY more important to your personal financial situation?

Of course, the second set of events is significantly more important to your overall "wealth health" than the first set.  While this may seem obvious, you would be amazed by the number of clients who disregard this simple realization.  Millions of us, in fact, behave as if the overall market news is a greater factor in our personal finances than details of our own lives!   Many of us succumb to the uneasiness surrounding the volatility of the market, which, in turn, makes us feel powerless to change our own Wealth Protection situation.  This can become a vicious cycle where all planning is avoided.

We have now come to Wealth Protection planning mistake #3: focusing on the macro-economy of the nation rather paying proper attention to your personal economy.

The Concept of the Personal Economy

To grasp the concept of your Personal Economy, it might help to think of

Like a body?  That no matter what you're given (your job, what you like to do for hobbies, single, married, etc) you should maximize your potential/your health.  We cant advise you on what type of career to follow, how to move up the corporate ladder faster, whether or not to get married or to have children. These are some of the most personal decisions you will make in your life.  However, regardless of what choices you do make, you will still be left with the challenge of building and protecting your wealth  -- in other words, maximizing your personal economy.  

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