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Writer's pictureBob Brooks

How Would You Describe The Prudent Money Investing Process?


For I know the plans I have for you,” declares the Lord, “plans to prosper you and not to harm you, plans to give you hope and a future.” – Jeremiah 29:11

Three words – Plan, Prosper, and Protect

In the last almost 30 years, I have come up with many different ways to describe what I call the Prudent Money investing process. As a Financial Advisor, there's a tendency to overcomplicate things. So, I was never 100% content with our explanation of the process….until now. It wasn't until just recently that I was led to these three words. It is very simple (isn’t simplicity the point?) These three words encapsulate prudent stewardship.


Plan


The vast majority of people do not have a game plan of action. I am not suggesting everybody needs a comprehensive plan. I don’t even have a comprehensive plan. I have individual plans created based on what is important to my family.


A plan merely is an outline of a course of action created to achieve an end result. If you want to retire at age 65, you develop a plan for that end result. If you want to get out of debt, you develop a plan for that result. This isn't some 100-page complicated document bound in leather. A good plan is a set of actions a person will take to achieve an end result. It creates a “Why” for everything you do with money. Most important, it gives “life instruction wrapped in your values” on a daily basis to get you to your desired result.


Prosper


God wants us to prosper. There is evidence of that all over the Bible. It is also what I think is one of the most misunderstood words in Scripture. God doesn't exist for you or I to be rich. Tithing and/or giving is not an “investment” you make into a ministry so that you will be blessed with financial riches. There is no question that God will bless us. It is just not up to us to dictate how we are to be blessed. The blessing, however big or however small or in whatever form, is God’s reaction to Faith. Oftentimes we miss it because we are looking for or expecting something else (blessing on our terms).


To prosper means to live an abundant life in all areas of life. It is about being at peace. In order to achieve financial peace, we have to do our part. You could almost take the 3 words and say plan + protect = prosperity. It is tough to achieve prosperity when you don't have a plan in place and a strategy to protect against the financial risks of this world.


Protect


Most investors have a strategy to grow money. A smaller percentage have a strategy to protect money. I have always believed that it is a principle of prudent stewardship is to grow what we are given and protect at the same time. It seems no one teaches about protection. Having said that, there are many different ways to protect retirement assets. It is an important part of the process, especially with what is happening today. There are 3 main options you can utilize to protect what you have accumulated. It just depends on one of those three options being a fit for your risk level.


If you want to have a conversation about your financial situation and see if I am a fit for you, let me know by calling 972-386-0384 or email us at info@prudentmoney.com .

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