Long Term Planning

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Long-Term Planning

• www.lifethenfinance.com

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Cash flow

• Cash flow is the difference between the available
  money at the beginning and end of an accounting
  period.
• Positive cash flow
• Cash inflow is larger than cash outflow
• Negative cash flow
• Cash outflow is larger than cash inflow
• Breakeven cash flow
• Cash inflow and outflow are the same

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Net worth

• Net worth Assets Liabilities
• Assets
• Are any item of economic value owned by a person
  or corporation e.g. real estate. Also includes
  intangible assets like copyrights and trademarks
• Liabilities
• A companys financial obligations or debts.

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What to include when calculating your Net worth

• Between age 2034
• Career
• What type, work schedule, how many days off
• Investments
• What type am I interested in, how much time will
  I devote to study
• Net worth cash flow
• How much I will have (net worth) and how much
  money will come from cash flow
• Overall describe your lifestyle
• What are those things that you will have, list
  those things youll experience during this time,
  how you feel about your money situation, how you
  picture your day to day life

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What to include when calculating your Net worth

• At age 3549
• Career Be established in a career and move up
  in my position.
• Net worth I will have enough money to live
  comfortably
• At age 5064
• Overall I will live a comfortable lifestyle and
  be able to travel when I want and spend money as
  I wish.
• At age 6584
• Overall I would like to retire and live
  comfortable by 65 yrs old.
• At age 80
• Also, include your initial thoughts on some of
  the investments you may make business, real
  estate, and stock market.

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Retirement Why early planning is important.

• Others that start planning early have the choice
  to work or not freedom, independence.

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Relationships Money

• Relationships can greatly affect your long-term
  financial planning.
• Money issues are the leading cause of divorce and
  fighting in a relationship so its important to
  discuss money issues as a part of getting to know
  each other

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Relationships Money Cont.

• If you are measurably more frugal than your
  partner, he or she can have an issue with you
  saving money. On the other hand, you may have an
  issue with your partner spending excessively.
• Make sure when discussing money with a partner to
  ask about their credit history and debt situation.

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Relationships Money Cont.

• Other points to consider if you are in a
  relationship
• Do their parents and guardians have a plan to
  take care of their own retirement or will it be
  something they need to take care of?
• If you choose to get married, what size wedding
  do you both want?
• The average weddings cost over 20,000.
• If just invested that money while youre young
  that can grow to over 300,000!
• Share budgets and create a budget together

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What is a Will?

• A will or a trust is a way to plan ahead. Just
  like when they created their financial plans for
  their immediate future.
• A will or trust is a financial plan for someone
  when they are no longer here
• Without a will, the court gets to decide where
  the assets of the deceased go without their input.

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Wills

• When a person passes away without a will or
  living trust a will, the state decides how to
  distribute their assets. If they have children
  under the age of 18 the state would also decide
  where the children go.

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What is a Living Trust ?

• Living trusts may allow assets to be passed to
  heirs without going through probate.
• Avoiding probate can save many costs associated
  with probate courts costs, avoid potential taxes
  and maintain privacy.

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Wills Trusts

• A will and a trust is designed to make it easy
  for your relatives by providing all your account
  information and accounting for distribution of
  your assets. A lot of family fights are caused
  from fighting over who gets what.

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