Sample Plan - Free Financial Plan by Anasova - Report - Page 10

1. 30% of people around your age have a net worth less than $10,000
2. 50% have a net worth under $50,000
3. 70% have a net worth under $130,000
Ana, it is important to get perspective on net worth in the United States. Approximately 40% of the country has a net
worth under $50,000. What you have accomplished by is already incredible! In fact, you are already solidly in the top
20% of the world.
From here you want to focus on one goal:
Build your assets to $606,000.
Looking back at your glide path, this is near the top of the ladder. This level of savings will bring your dreams much
closer to reality.
What is absolutely critical, is that until you have this base you can focus and take a very simpli ed approach. Build
the base.
Your risk tolerance should not be the driving factor in your investment process. Instead, you must recognize that
your greatest risk is that you won't have enough assets. Build up your assets rst. Later, you can be more
conservative.
While saving for retirement is important, it is not the only thing for you, for now.
I'd really like to see you build toward $200,000 in after-tax savings in an investment account (non-retirement
account)
At this level of assets, which you could access if you needed to, you will have mostly tamed your nancial
fears.
This is a cushion that can get you through virtually any storm. Your nancial anxiety will forever be
reduced.
Where to direct your savings - speci cs
Build your savings toward your beacons, making sure to not over emphasize retirement savings. As you head
toward those beacons, keep in mind these guardrails:
Pay off your bad debt
You must pay off your debt that is at an interest rate over 5%. And, you must not take on any new debt at
these levels. This is essential and it is your top priority. Paying down this debt is a form of savings.
Do not pay down any of your debt at an interest rate under 5% - your good debt
Of course you must make the minimum / required payment. But do not pay more than is required toward
principal. Your priority is not to pay down your good debt at this time.
Your priority is to build your assets.
Building assets is more important than paying down your good debt, for now.
I will coach you when to pay it down, later.
Do not pay down your student loans that have an interest rate under 5%.
Do not pay down your mortgage.
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