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Dear Friend, You may not realize it, but when it comes to managing money, many of the financial decisions you make are emotional and therefore not always logical. Don’t believe it? Certified financial planner Roy T. Diliberto supplies insightful questions to ask yourself -- these will help you see which emotions are making you tick financially... so you can start making thoughtful decisions right away. With rising fuel costs, you want to be smart about saving money on the next trip you take with your family or friends. Travel expert Nancy Dunnan, editor of the TravelSmart newsletter, shares a fuel-saving secret that will leave you with a little extra cash for a souvenir... a good meal out... or a financial head start on your next trip. All the best,  Jessica Kent Editor BottomLineSecrets.com Your Dreams Can Come True... No Matter What Your Income Roy T. Diliberto, CFP Many financial planners focus primarily on money management, trying to help their clients beat the returns of a benchmark, often the Standard & Poor’s 500 stock index. But that is not the most important consideration in the actual lives of most clients seeking investment help, according to certified financial planner Roy T. Diliberto. Diliberto says his primary aim is to help people set priorities -- and then achieve their goals, whether that involves spending more time with family, taking expensive vacations or retiring early. How his method can help you realize your dreams... SETTING PRIORITIES Often, when the financial-planning process begins, clients feel that they don’t have enough money to do what they would like to do. But after setting priorities, many people discover that they can afford more than they thought. Some financial advisers refer to the process of setting goals as life planning, but I prefer to think of it simply as financial planning done well. The first step in setting goals is to recognize that money is an emotionally charged subject. Some people hoard their savings, fearing that they will become impoverished. Others spend too freely, trying to prove that they are successful. My mission is to help clients look at money objectively. It is nothing more than a tool for accomplishing goals. The goals are what’s important. When I start working with a client, I begin by asking a series of questions...
People often have what they think are unachievable goals, such as owning a second home or taking a long trip to Europe. They imagine -- often erroneously -- that there are insurmountable obstacles preventing them from achieving their dreams. By answering this question, they begin thinking about how to overcome the obstacles. When I posed this question to one client, he got very emotional and said that he would like to provide college scholarships for needy students -- if only he could spare the necessary amount of money. We examined his assets and discovered that he could afford the expense without taking money away from various other financial needs and desires. He gave $100,000 as an endowment to his alma mater. If I had not asked the question, he would never have considered the possibility of the scholarship fund. Often I see retirees who are so concerned about losing a big chunk of their money that they don’t take the necessary steps to increase their assets so that they can afford a richer lifestyle. I ask clients to discuss their feelings of anxiety about money. One client in his mid-60s kept all his money in bonds, fearing stocks and other investments that might produce higher returns but also might lose more value, at least in the short term. It was clear that the bond portfolio would not provide enough income to support his retirement. He was on the road to exhausting his assets. After talking a while, he explained the source of his fear. When he was nine years old, his mother gave him $1 and said that he could spend 20 cents at a carnival. The youngster spent 40 cents. As a punishment, he was grounded for a week. Whatever his mother intended, she taught him to always be very cautious with money -- or face punishment. After we discussed this childhood experience, he was open to taking an objective look at his investment portfolio. Now 50% of his money is invested in stocks, and he has enough to cover retirement costs.
This question encourages people to think about what is truly important to them. After struggling with the question, many people resolve to spend more time with their families. Others slow their pursuit of money because they decide that they already have enough.
This question encourages people to reach for goals that they had long ignored. When faced with the question, an architect realized that he regretted never having designed a home for his own family -- so he designed and built that house. In another situation, a couple had a disabled child who was in his mid-30s. They had been meticulous about setting up a will and providing trusts that could support the child, but after thinking about the “24 hours to live” question, they decided to actually implement the provisions of the will while they were alive. They bought an appropriate condominium for the child and arranged for caretakers to pay the bills. WHAT IT TAKES TO ACHIEVE GOALS AND DREAMS Of course, to achieve goals and dreams, clients must have sound investment portfolios. To reduce the anxiety clients feel when the stock market drops sharply, I help them to diversify their portfolios, making sure that they hold a broad range of stocks and bonds. For example, because I did not place big stakes in technology stocks, my portfolios trailed the market in the 1990s, when tech stocks boomed. But when stocks -- especially tech stocks -- began falling in 2000, my portfolios proved resilient, losing less than the overall market. These stable results enable clients to feel more comfortable and worry less about their money. IDEAL PORTFOLIO FOR A MODERATE INVESTOR For an investor with a moderate tolerance for risk, I suggest putting 60% in stock funds and 40% in bonds and/or bond funds. Best ways to divide those investments...
Bottom Line/Personal interviewed Roy T. Diliberto, CFP, chairman and CEO of RTD Financial Advisors, Inc., a financial-planning firm in Philadelphia. He was named by Barron’s as one of the top 100 independent financial planners in the US and is a former national chairman of the Financial Planning Association. He is author of Financial Planning: The Next Step (FPA). www.rtdfinancial.com.  Drive or Fly: Cost Calculator Nancy Dunnan Compare the cost of gas with the cost of flying by using AAA’s free calculator at www.fuelcostcalculator.com. Example: Driving four people from Denver to Nashville in a 2007 Toyota Corolla uses about 62 gallons of gas and recently cost about $130/round-trip -- compared with at least $952 for four round-trip air tickets. Bottom Line/Personal interviewed Nancy Dunnan, a New York City-based financial and travel adviser, editor of TravelSmart newsletter and author or coauthor of 25 books, including How to Invest $50-$5,000 (HarperCollins).  Are You or Your Loved Ones Taking Any of These Highly Prescribed Medicines? Important: Help your friends get much more out of life -- forward this E-letter to them. Better: Send it to many friends and your whole family. This is a free weekly e-mail service of BottomLineSecrets.com and Boardroom Inc. Boardroom Inc. 281 Tresser Boulevard Stamford, CT 06901-3229 ATTN: Web Team You received this e-mail because you have requested it. You are on the mailing list as healthwellness82@gmail.com. Or... a friend forwarded it to you. Disclaimer: Bottom Line Secrets publishes the opinions of expert authorities in many fields. But the use of these opinions is no substitute for legal, accounting, investment, medical and other professional services to suit your specific personal needs. Always consult a competent professional for answers to your specific questions. Bottom Line Secrets is a registered trademark of Boardroom Inc. Subscribe | Unsubscribe | Update My E-mail Preferences Change My E-mail Address | Contact Us | Privacy Policy Copyright (c) 2011 by Boardroom Inc. |
If you had all the money that you needed to achieve your dreams, how would you lead your life? 
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