Where Should I Start My Financial Race?

Getting your financial journey on track requires following a set of steps to achieve your goals. Whether you’re just starting out or have already saved a considerable amount, these guidelines will help you attain financial independence, secure your retirement, and create lasting wealth for future generations 

Are you ready?

Securing the financial future of your family and establishing generational wealth are essential goals. Whether you’re embarking on your financial journey or have already accumulated substantial savings, this page offers valuable insights. We believe that newcomers seeking to build wealth for their families should prioritize specific investment and savings categories to maximize their potential for wealth growth. To guide you effectively, we have listed these categories in order of importance, ensuring that both novices and those well-versed in financial planning can benefit from our recommendations

Categories of Investments by Importance

  1. Get a Living Benefit Life Insurance. 
  2. Save 3 to 6 months of income for rainy days
  3. Save the FREE money that you can get
  4. Start a TAX FREE savings plan
  5. Save tax deferred money
  6. Save taxable money
  7. Protect your money through Wills and Trusts.

1. Get A Living Benefit Life Insurance


   Ensuring the financial well-being of your family should be your number one priority. Life Insurance with Living Benefits provides essential protection, especially if your loved ones depend on your income. While contemplating mortality, if you look into it, statistics are in your favor. People are dying at a more advanced age now, more than ever, but if you look at rates of developing a debilitating medical condition, the reality is that the likelihood of facing serious health issues during your lifetime is significant. With conditions like cancer affecting one in 3 people, it’s crucial to plan for such possibilities. 

   Recent surveys show that a lot of people think that an early mortality or a debilitating sickness will not happen to them but think about the people in your community. How many people do you know passed away early or were getting so sick that they could not provide for their family anymore, leaving their families in a dire financial situation? 

   Can you imagine being a burden for your family because of your health? On top of the fact that your spouse all of the sudden has to provide for the family, he/she has to take care of you too? It is not acceptable, especially when getting Life Insurance with Living Benefits is so inexpensive. 

   By obtaining Life Insurance with Living Benefits, you can safeguard your family’s financial stability at an affordable cost. Remember though that the best Life Insurance policy is the one that you can actually afford without it becoming a burden itself. 

   For more info about how a Life Insurance With Living Benefits works, click here.

2. Build a Rainy Day Fund

   This is one of the hardest steps to take, even for wealthy individuals. In today’s culture where we have been taught to spend like there is no tomorrow, it is hard to save money.   

   Saving 3 to 6 months’ worth of income is essential before considering other investment strategies. Recent events, such as the global coronavirus pandemic, have highlighted the importance of having an emergency fund. Financial advisors debate whether saving for emergencies or acquiring Life Insurance with Living Benefits should take precedence. However, due to the affordability and significant leverage of Life Insurance, it often proves the more favorable choice for the #1 step in your financial race.

   Your rainy-day fund should be readily accessible in an account designed for emergencies. Although it may or may not generate returns, it should be reserved for genuine unforeseen circumstances, such as job loss, temporary inability to work, or unexpected expenses. Once you tap into this fund, your priority becomes replenishing it. Remember that getting that pair of shoes that you wanted for a year does not constitute a rainy-day emergency.


3. Take Advantage of Free Money Opportunities

   Unless you have a wealthy relative, the business world offers limited avenues to obtain free money. One such opportunity is a 401K matching program. While this website primarily emphasizes the benefits of a Tax-Free Retirement over traditional taxed retirement plans, it is important to seize matching contributions from your employer. Free money is free money, right?

   Contribute enough to maximize the employer’s matching amount, as this represents a 100% immediate return on your savings. If your employer’s matching contribution is a percentage of your income, determine the corresponding dollar amount that your employer is contributing and save it in your 401 K religiously. It shouldn’t be any more or any less than that.


   I know I have tried to make a point on the fact that 401 K and other qualified plans have a higher risk when it comes to the market taking a dive. To mitigate that risk and still participate in the market, you can roll the money saved into the 401 K into an index annuity or even into an IUL but you will have to pay taxes and potential penalties to do that. You will have to do your math on that, or have a professional that understands both, do it for you.  Click here to learn more about annuities


4.Start a TAX-FREE Savings Plan

   The only 2 viable alternatives for a Tax-Free Savings Plan are an Indexed Universal Life insurance (IUL) or a Roth IRA. On this website, you will learn more about how these 2 plans work. To choose between these 2 plans there are 4 questions that you will have to answer to :

  1. How old are you when you start saving your money?
  2. How much money are you planning to save per year?
  3. Are you risk-averse?
  4. Do you need a death benefit?

   The rule of thumb for choosing one or the other is this: If there is no need for a death benefit, you don’t mind taking a risk in the market, don’t need the money until you are 59 1/2 years old and you are not planning to save more than $6000 a year now or in the future, get a Roth IRA.

   If you want to play it safe and believe that the market will crash again, if you want to build generational wealth, if you are under 50, I would say get an Index Universal Life Insurance. If you are older than 50 but you can afford to invest more money, an IUL can be a viable alternative for you too. 

   Generally, if you don’t require a death benefit, are willing to assume market risks, won’t need the funds until you reach 59 1/2 years of age, and plan to save no more than $6,000 per year, a Roth IRA is recommended. 

   On the other hand, if you prioritize safety, foresee market crashes, desire to build generational wealth, and are under 50 years of age (or have the financial capacity to invest more), an Indexed Universal Life Insurance policy may be a suitable choice. 

  To make a better-informed decision, have one of our agents run several scenarios for you


5. Tax Deferred Money

    Most qualified retirement plans operate with tax-deferred funds, with the exception of Roth IRAs. Unlike taxed contributions, you will eventually pay taxes on both contributions and gains during the distribution phase of qualified plans. 

   Financial advisors commonly predict higher future tax rates, meaning you might face a greater tax burden than if you paid taxes presently. Additionally, qualified plans often impose restrictions and penalties on early withdrawals. While these plans provide a tax-saving advantage during the contribution phase, they leave you exposed to market downturns without protection.

   Most of the qualified plans are tied to a mutual fund that can take a loss when the market is taking a dive.

6. Investments With Taxable Returns


   Investments generating taxable returns on an annual basis should generally be considered as the last investment option. The return on such investments must be substantial enough to offset the tax obligations they incur. Taxes often constitute the most significant portion of an investment’s expenses, making them easily overlooked. Carefully factor in the tax implications when evaluating investment opportunities, as they can significantly impact your overall returns.


A financial advisor’s role is to challenge your comfort zone and inspire proactive financial decisions. We would rather know that you hate your financial advisor now in the contribution phase and to thank him/her later in life when you can afford a better lifestyle and when you and your family need your savings the most. 

Strive to save as much as possible, as early as possible. Identify non-essential expenses in your life and consider reducing or eliminating them. For example:

– Evaluate your cable bill and consider reducing or eliminating it.

– Explore more affordable entertainment options.

– Cancel unnecessary newspaper and magazine subscriptions.

– Assess gym memberships and consider cheaper alternatives or exercising at home.

– Brown-bag your lunch or reduce dining out expenses.

– Make coffee at home instead of buying expensive cups daily.

– Review auto and car insurance rates and seek better options.

– Decrease your cell phone bill if feasible.

– Seek more cost-effective childcare and child activity options.

– Evaluate clothing purchases and determine if you genuinely need them.

– Consider managing landscape and house cleaning tasks yourself.

– If possible, reduce or quit excessive smoking or drinking habits.

– Stretch grooming visits for your pet to save on expenses.

– Reassess pet toy expenses and find more affordable options.

– Consider downsizing to a reliable but less expensive vehicle.

– Avoid unnecessary spending to keep up with others’ lifestyles. Do you need to keep up with the Joneses?

For a free 1/2 hour consultation or to request several illustrations based on your situation, schedule yourself on our calendar.

Insurance and financial matters are complex and subject to change. The information provided on this website may not cover all possible scenarios or address individual circumstances. Any testimonials, case studies, or success stories shared on this website do not guarantee similar results for everyone. Individual experiences may vary based on a range of factors.

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Please reach out to us at contact@easyfinancialplan.com (mailto:contact@easyfinancialplan.com) if you have any questions or concerns regarding the information presented on this website.

Last updated: [8/17/2023]

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