Insurance Cog Cycle 1

Analyze, Review & Educate

Financial objectives are the result of defining a life state or financial position that you wish to achieve. Setting those objectives is a critical step in developing an effective financial plan that will work for you and give you the life you want to live.

When you have defined financial objectives you have the strong foundation on which to build your financial plan and on which to base the life decisions you will make in the future. You will also discover that your objectives give you a sense of purpose that drives your financial plan and helps you achieve your life goals.

Commonly stated financial objectives include saving for a child’s education, retirement or a home purchase; or to pay down debt. When you define your objectives, consider all facets of your current and potential future financial situation.

The following are ideas to help stimulate your thoughts about your own objectives:

  • Accumulating wealth; property
  • Building an emergency fund for unforeseen expenses
  • Buying a home; vacation property; vehicle
  • Collecting jewellery; art; antiques; other collectibles
  • Developing a source of income from a business interest
  • Helping to care for elderly dependents or a child with special needs
  • Making significant contributions to charity
  • Saving for retirement; sabbatical or extended travel; your children’s education
  • Providing for your family in case you die unexpectedly
  • Protecting yourself from personal risks; in the event of long-term disability

The “Big Picture”

Before Mike Bock and Ironman Financial help you develop your financial strategy, we will assess your current financial position. We call this ‘taking a look at the big picture’.

We use the information to create a couple of tools for you:

  • Balance sheet: listing assets minus liabilities – to determine your net worth
  • Household cash flow statement: listing monthly income and expenses

After we have gathered all of the necessary information we create your Personal Financial Profile – your framework to get you started.

Please use my Cash Flow Calculator and Net Worth Calculator to help you through this exercise.

Insurance Cog Cycle 2