Your Financial Matrix

Your Financial Matrix

 

Summary:

 

In today’s 7th episode of the Confident Wealth Podcast, Bill Bush and Pete Bush from the Horizon Financial Group of Baton Rouge, Louisiana discuss the value in utilizing an internally developed tool called “Your Financial Matrix.” Learn all about the benefits of the seven categories of this financial planning strategic device which are: Cash Flow an Budget, Investment Planning, Retirement Planning, Income Tax Planning, Risk Management and Insurance, Estate Planning and Charitable Giving, and Assistance to Others. Bill and Pete will get you up to speed on the importance of customizing your wealth-building methods to your particular lifestyle.

 

 

Time Stamped Show Notes:

• 00:56 – Bill Bush and Pete Bush start the discussion on the multiple components of building wealth.

• 02:26  – “Your Financial Matrix,” developed by Peter Bush, spells out financial situations the Horizon Financial Group can assist with.
• 03:15 – The 7 Categories of “Your Financial Matrix”: Cash Flow and Budget, Investment Planning, Retirement Planning, Income Tax Planning, Risk Management and Insurance, Estate Planning and Charitable Giving, and Assistance to Others.
• 03:31 – 1.) Cash Flow and Budget: a foundational part of a person’s financial plan because it is out of discretionary cash flow that they can save, buy insurance, and help other people.
• 06:22 – Sometime during 2000 Horizon Financial Group shifted to the holistic planning model and fee-based planning.
• 08:32 – 2.) Investment Planning: major factors that effect this include: risk tolerance, time, volatility, taxable vs. tax-deferred, and asset allocation.
• 11:25 – 3.) Retirement Planning: factors to consider include: business exit strategy, social security, Medicare, and withdrawal strategies.

• 14:36 – 4.) Income Tax Planning: make sure that you are maximizing deductions. Look at your tax return from a financial planning standpoint instead of a tax standpoint.
• 17:54 – 5.) Risk Management and Insurance: you are guarding yourself against catastrophic potential risk. Look for old policies that are not needed, too expensive, or outdated.

• 20:40 – 6.) Estate Planning and Charitable Giving: trusts, setting up powers of attorney, estate taxes, giving to your favorite charities, and wills fall under this category.

• 23:17 – 7.) Assistance for Others: this category can apply to preparing for your kids to go to college, or assisted living facilities for your elderly parents when they can no longer take care of themselves.
• 28:08 – The closing credits

 

3 Key Points:

1. Key factors that have an effect on investment planning include: risk tolerance, time, volatility, taxable vs. tax-deferred, and asset allocation.
2. Factors to consider with retirement planning include: business exit strategy, social security, Medicare, and withdrawal strategies.

3. With charitable giving and estate planning, you are dealing with trusts, setting up the proper powers of attorney, estate taxes, giving to your favorite charities, and setting up your will.

 

Tweetable Quotes:

-    “Cash flow and budgeting, very, very foundational to someone’s financial picture.” – Pete Bush.

-    “For the most part, everybody’s accumulating wealth in the value of their homes and their 401K plans.” – Pete Bush.

-    “There’s a lot of different components to your money and financial life, more so than just your retirement or your investment portfolio.” – Pete Bush.

 

Resources Mentioned:

• Horizon Financial Group – website for Horizon Financial Group
• Confident Advisor Practice – podcast for Confident Advisor Practice