Fit Your Financial Plan on an Index Card

FINANCIAL PLANNING CAN SEEM INTIMIDATING. IT DOES NOT HAVE TO BE. ARMENTA EXPERT IS ASKING IF YOUR FINANCIAL PLAN CAN FIT ON AN INDEX CARD AND THE IDEA COMES FROM THE BOOK THE INDEX CARD, WHY PERSONAL-FINANCE DOES NOT HAVE TO BE OBLIGATED. BRUCE JOINS US, GOOD MORNING. GOOD MORNING. ARE INDEX CARDS STILL AROUND? THEY ARE AND I STILL USE THEM. I USED THE FOR STUDYING FOR TESTS AND I LIKE THAT YOU CAN BRING THE BACK AND WAIT THE BRAKES ARE FINANCES DOWN. THIS GOES BACK TO 2011, THE AUTHORS OF THE BOOK, I THINK WAS A PROFESSOR AT THE UNIVERSITY OF CHICAGO THE COMES UP WITH THE IDEA, BUT KEY FUNDAMENTAL POINTS ON AN INDEX CARD AND THERE YOU HAVE A FINANCIAL PLAN. IT WAS EXPORT AND WENT VIRAL AND IT GOT POPULAR ENOUGH THEY WROTE A BOOK ABOUT IT. I HAVE DONE THAT WITH PROSPECTIVE CLIENTS AND I HAVE SAID ON A LEGAL PAD OKAY PAY DOWN YOUR CREDIT CARD DEBT, THAT YOUR 401(K) OR CONTRIBUTE TO IT TO GET THE MATCHING CONTRIBUTION, TAKE THAT AND DO THESE THINGS AND LET'S TALK AGAIN IN ONE YEAR. I CAN UNDERSTAND THE BASIC PREMISE THAT FINANCIAL PLANNING IS AN ONGOING LIFE PROCESS AND SO THIS KIND OF PROCESS WHEN CANNOT FIT ON AN INDEX CARD AND IT'S A GOOD THESE GUYS AND I'VE WRITTEN A 250 PAGE BOOK ABOUT IT. [ LAUGHTER ] THE IDEA OF HAVING GUIDING PRINCIPLES, I THINK WE SEE IN THE WORKPLACE YOU SAY THESE ARE THE THINGS WILL FOCUS ON. I KNOW FOR MY FAMILY THE GOALS ARE TO SAVE MONEY FOR THE KIDS COLLEGE, SAVE MONEY FOR RETIREMENT AND THAT IS ABOUT IT. WE'RE NOT TRYING TO BUY A BOAT OR A HOUSE BUT MOST PEOPLE HAVE THESE OTHER KINDS OF GOALS AND IF YOU COULD WRITE THEM DOWN THAT LEADS YOU INTO THE MORE ADVANCED THING. THE TERM FINANCIAL PLAN IS USED A LOT AND WHAT EXACTLY IS A FINANCIAL PLAN AND IT IS WRITING DOWN GOALS AND OBJECTIVES BASED ON CORE VALUES AND THERE'S STATISTICAL DATA THAT SAYS IF I WRITE IT DOWN AND REVIEW IT IT IS MORE LIKELY TO HAPPEN AND I AM MORE LIKELY TO BE SUCCESSFUL. IF THAT STARTS WITH AN INDEX CARD THAT IS NOT WRONG BUT THAT WILL NOT BE THE LIFELONG PLAN. I DO LIKE IT BECAUSE YOU'RE SO GREAT WITH YOUR FINANCES AND THOSE GOALS YOU HAVE HAD THEY ARE AWESOME BUT FOR PEOPLE GETTING STARTED YOU CAN BE SO DAUNTING. SO WHAT ARE SOME OF THE RECOMMENDATIONS THAT HE MENTIONED IN THE BOOK? THIS ONE MIGHT BE THE FAVORITE, A GOOD FINANCIAL ADVISOR. [ LAUGHTER ] EVEN THE AUTHORS TO START WITH THIS PREMISE IT IS SO SIMPLE TO DO IT ON AN INDEX CARD THEY CONCLUDE WITH STATISTICAL DATA PROVES OVERWHELMINGLY AND THAT IS PEOPLE USE A GOOD FINANCIAL ADVISOR DO BETTER THAN THOSE WHO DO NOT. THERE ARE A LOT OF REASONS WHY THAT IS TRUE IN SOME PEOPLE SAY YOU CANNOT BE OBJECTIVE BECAUSE YOU ARE FINANCIALLY ADVISOR BUT THIS IS FACTUAL DATA WITH THAT IS DONE BY PEOPLE WHO ARE NOT FINANCIAL ADVISORS. IS IT BECAUSE SOMEONE CAN SEE YOUR MONEY AND YOU DON'T WANT TO SPEND AS MUCH? PARTLY BUT I THINK ADVISORS COACH AND IF YOU GO BACK TO THE 2008 MARKET RETRACTION EVERYONE UNDERSTANDS YOU BUY LOW AND SELL HIGH WHEN STOCK MARKET PLUMMETS AND FEAR TAKES OVER YOU WANT TO SELL AND YOU NEED THE ADVISOR TO TALK TO OF THE LEGENDS THEY LOOK WE'RE NOT GOING TO SELL RIGHT NOW. GREAT. CALL BRUCE. THANK YOU. YOU SEE HIM HERE