Frequently Asked Money Questions
The first step you must take to achieve wealth is to define your wealth goals. Dream big. Dream very big. What do you want to be when you grow up? Maybe you don’t know. Maybe you can’t figure it out because you are so bogged down with the day to day stresses of going to school, working or taking care of children. Well take a breather and think of what you really want. If you find yourself with questions as to how to reach those goals, ask aware here! Send me your questions via email.
What are the core components of a well defined wealth plan?
When you sit down with an adviser the first thing he or she is going to ask you is to define your goals. The answer should be YOUR goals. They are personal. There is no wrong answer to this question. Only right answers. Whatever you truly want for your future is all that matters in this step. Just make sure you keep your future in mind when defining your goals. Think retirement, kids college, buying a home, an emergency fund...
How much cash will I need to buy a four bedroom house?
Look up real estate listings at realtor.com or at other realtor sites. There are calculators at all of them. It will give you an idea of how much your mortgage will be based on how much money you can put down. keep in mind that you will also need to pay a monthly tax bill in addition to the mortgage amount. Taxes vary from state to state. Down payments vary from 3% to 20% down typically. Ask friends for a mortgage company referral.
What is the definition of wealthy?
Some define wealth by whatever Puffy has which usually involves a mansion and a yacht. Others define it as a house with a white picket fence. You must define wealth for yourself but the basic formula starts with subtracting your liabilities from your assets, i.e. Assets - Liabilities = Net Worth. The more you increase your net worth, the more you increase your wealth.
What makes one an investor?
By having money in a vehicle that will provide earnings. This can be a savings account where you earn .25 percent on your deposits or a stock account where you earn 8% based on the stock market. If you have money in a 401K or 403b, you are an investor. It's really not that fancy.
When do I need to hire a financial adviser?
As soon as you decide you are serious about building your wealth you should speak with an adviser. Find an adviser who is willing to give you a free consultation. During this consultation you should feel out if this person is a good fit for you. Do they listen to you? Do you trust them? Ask family for a referral or drop in on your local bank's branches financial advisers.