Welcome to the Wealth Curve Talk Podcast, in which John Smallwood, a certified financial planner, identifies key areas of pressure on your wealth and strategizes with you to reduce it.
In this episode, John continues his series on the Wealth Curve Blueprint. This time he explains debt liability, the relationship between your debt payments and your income.
John is the author of 5 Ways Your Wealth is Under Attack. He has lectured at various educational institutions such as John Hopkins, Haas School of Business, UC Berkeley and UNC Chapel Hill. He has consecutively received the Five StarSM Wealth Manager Award since 2011, and is the former president and chairman of the Rotary Club of Red Bank Foundation.
John’s strength lies in his ability and commitment to continually improve the level and quality of the financial planning process. His macro view approach and dedication to his clients’ growth involves an evolving strategy that strives to meet the demands, desires, and needs of his clients in a continually changing economic environment.
Here are John’s don’t-miss points:
- Debt liability refers to car loans, student loans, credit cards, inter-family loans, medical loans, and 401(k) loans.
- It includes “good debt” (which is tax-deductible) and “bad debt,” which isn’t.
- If your debt is too high, your principal and interest payments are going to be too high as a percentage of your income. That will hurt your lifestyle, your savings rate, and the efficiency of your tax benefits.
- Your debt can be a product of not planning well for future liabilities. Decisions you make now, or that you made in the past, will affect what you can do in the future.
- Avoid future debt by planning well for future liabilities like your kids’ college, weddings, bar mitzvahs, and bat mitzvahs.
- While we can’t get you instantly out of debt, we can work to make your debt bearable so that you can enjoy life and optimize your financial situation now. We can make sure you get greater tax benefits from it and make it less onerous on your daily cash flow.
Let’s build a Blueprint and Scorecard, let’s look at your debt liability, and let’s optimize it so that you can accumulate wealth and live your life the way you want to. For more, listen here. Then schedule a time to come in and make your Wealth Curve Blueprint and Scorecard. Call us at 732-542-1565 and let us help you get your plan optimized.
I hope to hear from you soon!
Are you ready to increase your profit growth by 25%? John will show you how in the 2018 Business Owner’s Guide To Maximizing Your Benefits From The 2017 Tax Cuts.
Click here to get your complimentary copy.
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