The older I get, the more I like simple. I just returned from a trip to Hawaii. It was nice, but not simple. Simple is getting in the car, driving four and a half hours to Destin, Florida, unpacking, and sitting on the beautiful white sand beaches watching the waves roll in.
Simple is recognizing that life doesn't have to be all that complicated.
Life has become more complex, so the more simple we make it, the better. Financial stuff has become more complicated, i.e., hedge funds, derivitives, bond trading, index funds, ad nauseam. Complicated.
If you can answer the following three questions, you can make your financial life simple:
1. What happens if you die too soon?
2. What happens if you live too long?
3. What happens if you become disabled?
If you die before you planned on it (most of us will), have you planned to take care of those you leave behind?
If you live too long (like past your 80's), have you made preparations to never run out of money?
If you become disabled, do you have the money to pay the bills while you are unable to work?
Simple planning will make you real comfortable with these questions. Simple.
SimpleEconomicsTM is a seven step process that I teach to make all the financial stuff simple, while preparing you to have really good answers to the three questions above.
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