Issue #10 – 5th March 2020

1) Understands money (to get enough of it)

2) Innovative (developed problem solving skillset)

3) Control over their time and their life

 

2030 and you

What does your life look like in 2030? 

What does your financial position look like? 

Are you 10 years better off financially or just 10 years older?!

You are on a trajectory.  If we add up your level of savings, your assets (excluding the home that you live in) they will grow and accumulate at a particular rate of growth over the next ten years. 

Is that all there is?!  If you already have sufficient scale with wealth (property, direct shares, your own business, your farm) etc, the simple increase in those asset values over the next 10 years may mean that you do not need to do anything different ( by the way – you would be in a very small group).

If, on the other hand, even with the growth on your current asset base you still do not have enough, why not get in touch with WISEplanning and put it directly at our feet as to how you can ramp things up, and get on track?

Do you need some help to calculate what your asset base will look like in 10 years’ time? 

 

Financial Planning

Positioning for Success

Between now and 2030 is a meaningful amount of time for you to make a substantial difference to your net worth by then.  However, that trajectory that I mentioned earlier does not change all by itself.  You will need to make that happen. 

The good news is, it is not complicated.  You can improve things by just saving a bit more money, working harder and investing in another asset or two.  However, this approach is somewhat transactional.  It helps but not that much.  To be clear, a transactional approach has its limitations.  To make more money more quickly a more strategic way of doing things is the key. 

This means not relying on working harder, saving more money and investing in another asset to improve things.  It means not wondering where you should invest to get better results.  This is not to say that investing somewhere differently to where you currently invest will not help you.  It probably will but again it has its limitations.  That is because the real key is to look at how you invest.  

 

Mindset Alignment

Align your behaviour with your goals

How is your financial wealth thermostat?  Mindset is about your lifetime of conditioning, your habits and attitudes.  It is the way you see things.  You will have some insights that are useful, even powerful.  There will also be gaps and blind spots. 

One thing we know about people is that most people have a so-called ‘financial wealth thermostat setting’.  In other words, their behaviour is what has helped them to achieve where they are at now however it is also the glass ceiling, or the ‘thermostat’, that keeps them at the current level. 

What about you?  Will the growth on your investment assets be enough in 10 years to get you there?  If not, if for no other reason than it is now 2020 and in 10 years’ time it will be 2030, why not take a look at how you can shift your financial wealth thermostat setting to another level?

Seriously, you can see the thermostat working, the glass ceiling holding people back when those who win lotto inevitably wind up back where they started regardless of how much they win.  In many cases, they are worse off than before they won lotto.  That is the thermostat setting, the glass ceiling and, in our language at WISEplanning, their financial independence modus operandi (FIMO). 

So … for you is it more of the same, relying on a transactional approach to wealth building … or is it time to be more strategic, consider your current FIMO and determine that now is the time to lift your game up to the next level?

 

Investing

Price is what you pay; value is what you get

The Corona Virus will impact on most investments including your Kiwisaver.

Here is our recent advice to clients explaining what to do …

 

“Be not afraid of growing slowly, be afraid only of standing still.”

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