By FirstWave Financial
Experience the Four Freedoms!
Financial independence is the ability to live from the income of your own personal resources.
– Jim Rohn
This is a good working definition of financial independence. I say it a little differently; working if you want to, not because you have to, and living as you desire for the rest of your life.
When this happens you experience four freedoms: freedom of time, freedom of money, freedom of relationship, freedom of purpose, and at levels you may have never sensed before. You can go, do and be all the things you may have put off for decades because of work and other commitments.
Here are the five things you should do as you enter and experience this stage of wealth:
- Know when you will arrive– The joy of financial independence can be accelerated by the knowledge of when it is going to happen. By monitoring and updating your WealthPlan TM you will know with increasing accuracy when you can quit working if you desire. This knowledge changes your entire attitude and outlook about work.
- Convert your term life insurance– Depending on many factors, now may be a good time to convert your level premium term life insurance to a permanent life insurance policy, or to apply for new coverage, for estate tax purposes.
- Drop your disability insurance– Since wages are no longer necessary for you to be financially independent, neither is the insurance you took out to protect them.
- Plan your future cash flow– If you choose to stop working, you will no longer have wages as income. You must identify the most appropriate bucket from which to extract the cash flow you need, considering income and estate tax ramifications. Then invest your various portfolios so that you can live without worrying about where the cash flow you need will be coming from.
- Revisit your estate plan– Review your earlier estate distribution decisions in light of your current wealth and family dynamics. Make any changes you decide are necessary.
This stage could be a twenty or thirty year run. You have worked hard to get where you are now. Enjoy every minute! For more information on how one of our WealthCoaches™ can help guide you through The Five Stages of Your Financial Life, give us a call at (321) 773-7773 or visit our website at www.firstwavefinancial.com today!
You should not assume that any discussion or information contained in this publication serves as the receipt of, or as a substitute for, personalized investment advice from FirstWave Financial. A copy of the FirstWave’s current written disclosure statement discussing our advisory services and fees is available upon request.