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Financial Life Cycle
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The financial life cycle chart was created by Bert Whitehead, founder of Cambridge Advisors and author of Financial Dysfunction- Why Smart People Do Stupid Things with Money. The life cycle chart represents transitional stages in our lives as they relate to our age and our financial progress. To
measure your financial progress through the financial life cycle,
find your age on the chart and then compare your current financial
progress to the benchmark for that stage. That is, how does your
net worth compare to your annual income? Or, how does your investment
portfolio compare to you annual living expenses? For example, if
you are between the ages of 40 and 55, your net worth should be
roughly 3 to 7 times your annual income and you should be in the
rapid accumulation stage of your financial life cycle. If you are
between the ages of 55 and 70, your investment portfolio (not net
worth) should be 7 to 10 times your annual living expenses, and
you should be in the financial independence stage of your financial
life cycle. No
matter where you find yourself on the financial life cycle, there
are strategies you can use to accelerate your progress to the next
stage If
you are interested in moving quickly toward financial independence
(or on to subsequent stages), contact us. We can discuss your current
position and set a plan to help you reach the next stage quickly. |
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| 3737 5th Ave, Suite 201 | Phone: (619) 209-6565 |
| San Diego, CA 92103 | Email: ted@feeonlyadvisor.com |