- Good cash flow is the cornerstone a solid foundation. Mismanagement of cash flows has been rated as the largest pitfall on the road to wealth. With out sufficient cash flow, none of the other pieces can come together properly. Our philosophy is such that more people should run their personal finances more like a business. Any good business owner knows the importance of cash flow to the survival of his/her business. Since cash flow and debt management often correlate, Fiat Advisory professionals specialize in analyzing their client’s monthly cash flows and debt structure. Then they will help develop a plan to make sure the rest of the pieces of the puzzle can come together properly.
- The second block in a solid foundation is emergency funds. It is an essential step in our process to allocate enough money to create a “reserve” in the event of an emergency. By emergency we don’t necessarily mean catastrophe. That is what insurance is for. There are a lot of small things that come up on a monthly basis and sometimes are not accounted for (air conditioner goes out, shingle blows off the roof, kids books at college, etc.). These things, although seemingly inevitable, often throw a wrench in financial plans. Many people simply do not account for them. This is why you should try to have a minimum of 6 months worth of liquid assets available for these needs. With out these reserves you have nowhere to turn but high interest rate credit cards and bank lines of credit. By properly structuring your debt and cash flows, your Fiat Advisory representative can put together a savings plan to help you build the reserves you need.
- The third block in the foundation is asset protection. Your client has worked hard to get to where they are in life. To obtain the objects that make them happy and to have the financial stability to maintain that lifestyle, can take years of hard work. It may only take seconds for it all to disappear. Whether we are talking about adequate property insurance or covering our most precious assets, our health and our lives, we need to make sure that if something unfortunate should happen, they and their loved ones would be able to continue life as closely to normal as possible. Many people carry insurance because they have to. Therefore, they carry the bare minimum or fail to evaluate their current coverage. This can lead to tragedy. Insurance should be re-evaluated on at least an annual basis to ensure adequacy. Fiat Advisory refers clients to knowledgeable insurance agents that can help put together a plan to ensure the best possible coverage and they will be there to help you make any changes for the future.