The Ultimate Financial Plan

How to build a financial plan that really blends into your life The latest volume in the bestselling Ultimate series, Jim Stovall and Tim Maurer's The Ultimate Financial Plan: Balancing Your Money and Life is a one-stop, comprehensive, personal financial planning book exploring the intersection of money and life. The Ultimate Financial Plan examines the connection between actions, thoughts, and feelings when it comes to all things financial. The key to getting the most out of your wealth, the authors argue, is certainly found in the wise utilization of tools, like budgets, bank accounts, 401(k)s, IRAs, Roth IRAs, education savings plans, and real estate, as well as home, auto, business, health, disability, and long term care insurance, but even more so in the contentment found in balancing money's influence in our lives with personal values and goals. An insider's look into the recently humbled "e;Big 3"e; the banks, brokerage firms, and insurance companies and the inner workings that often set their proprietary goals and objectives above all A critical examination of the role of various financial sales people, advisors, planners, and consultants A guide to navigating Economic Bias a conflict of interest involving money and how it affects every financial decision we make The Ultimate Financial Plan is the application of the resources at your disposal for the purpose of living your life to the fullest, and this book will show you the quickest route to getting started on the path to ultimate success.

How to build a financial plan that really blends into yourlifeThe latest volume in the bestselling Ultimate series, JimStovall and Tim Maurer's The Ultimate Financial Plan: BalancingYour Money and Life is a one-stop, comprehensive, personalfinancial planning book exploring the intersection of money andlife. The Ultimate Financial Plan examines the connectionbetween actions, thoughts, and feelings when it comes to all thingsfinancial. The key to getting the most out of your wealth, theauthors argue, is certainly found in the wise utilization of toolslike budgets, bank accounts, 401(k)s, IRAs, Roth IRAs, educationsavings plans, and real estate, as well as home, auto, businesshealth, disability, and long term care insurance, but even more soin the contentment found in balancing money's influence in ourlives with personal values and goals.* An insider's look into the recently humbled "Big 3"--thebanks, brokerage firms, and insurance companies--and the innerworkings that often set their proprietary goals and objectivesabove all* A critical examination of the role of various financial salespeople, advisors, planners, and consultants* A guide to navigating Economic Bias--a conflict ofinterest involving money--and how it affects every financialdecision we makeThe Ultimate Financial Plan is the application of theresources at your disposal for the purpose of living your life tothe fullest, and this book will show you the quickest route togetting started on the path to ultimate success.

Foreword xiPreface xvAcknowledgments xixIntroduction xxiChapter 1 The Gift of Money: Money 101 1The Value of Money 3Money Beliefs 4Chapter 2 The Gift of Purpose: Personal Principles and Goals7Personal Principles 7Goals 10Chapter 3 The Gift of Discipline: Household Cash Flow17Personal Financial Statements 17Financial Crises 25Chapter 4 The Gift of Enough: Debt and Financial Freedom27Financial Freedom 28The Danger of Discontent 29Emergency Reserves 32Bad Debt 35Better Debt 39Economics and Emotions 41The Cure for More 43Chapter 5 The Gift of Discernment: Risk Management Decisions45The Accident 47Risk Management Techniques 48How Insurance Works 50Chapter 6 The Gift of Security: Life Insurance 55Life Insurance: Why? 55Life Insurance Needs 59Life Insurance: How? 62Life Insurance Wants 67Different Types of Life Insurance 70Purchasing Life Insurance 73Chapter 7 The Gift of Certainty: Auto, Home, and LiabilityInsurance 77Auto Insurance 79Homeowner's Insurance 82Excess Liability (Umbrella) Insurance 84Chapter 8 The Gift of Health: Health, Disability Income, andLong-Term Care Insurance 87Health Insurance 89Types of Plans 89HSAs and FSAs 90Recent Health Insurance Changes 93Disability Income Insurance 95DI Moving Pieces 96Social Security, Medicaid, and Medicare 99Long-Term Care Insurance 100LTC Moving Pieces 101Chapter 9 The Gift of Clarity: Investing and PortfolioManagement 107Stocks and Bonds 109All Things Considered Equal? 111Mutual Funds 112Economic Analysis 115Market Valuation Analysis 117Technical Market Analysis 118Efficient or Not? 119Passive versus Active 119Investing with "Style" 121Relative Return versus Absolute Return 123Index Huggers, Return Chasers, and Risk Managers 126Decisions, Decisions 128Chapter 10 The Gift of Transparency: Annuities 131Immediate Annuities 134Fixed Annuities 136Variable Annuities 137Equity Indexed Annuities 140Annuity Disadvantages 141Annuity Advantages 143Chapter 11 The Gift of Preparation: Tax Planning 147Tax Myths 150Tax Rules 155Chapter 12 The Gift of Learning: Education Planning159Family Education Policy 162Having The Talk (no, not that talk) 166Education Savings Plan 169The 50 Percent Rule 172Chapter 13 The Gift of Fulfillment: Retirement Planning175Retirement Past 179Retirement Present 180Retirement Future 180Employer-Sponsored Retirement Plans 181401k Rollovers 182Traditional IRAs 184Roth IRAs 185Traditional versus Roth 186Roth IRA Conversions 187Fulfillment Planning 189Retirement Makeover 193Chapter 14 The Ultimate Gift: Estate Planning 197Wills 200Durable Powers of Attorney 205Advance Directives 206Beneficiary Designations 208Probate 212Estate Tax 214Chapter 15 The Gift of Discretion: Choosing a FinancialAdvisor 217"The Big Three" 222Financial Planner Compensation 224Finding a Professional Planner 228Chapter 16 The Gift of Action: Your Plan for Money and Life233Fundamental and Practical Change 234Reprise 235Stay Connected 238Notes 241About the Web Site 245About the Authors 247Index 249