Do You Want Your Exit Planning to Produce Wealth? / by Kerri
Ideas, inspiration and insights on goals and goal setting abound. That’s a good place to start, but it’s not enough to get you to the finish line of achieving your goals on your terms, on your timeline.
Goal achievement starts with good goals, goal setting criteria, and a timeline. To get you there, you also need to identify your criteria, and what will keep you focused and accountable to ensure you realize wealth from your efforts.
Any big hairy audacious goal you set must lead to long-term freedom and satisfaction. In business, that translates to driving your business to achieve those long-term goals that will produce wealth, not just an income. A paycheck and profits are not the same thing. One is immediate; the other is a longer focus and strategy.
What’s Your Freedom Number?
Do you know what your freedom number is? Is it a minimum income/year? Is it a net worth of $$$? How much would it take for you to feel you have achieved your goal?
Your freedom number is essential to every decision you make in goal setting and goal achievement. You must know your freedom number to make better decisions and continue to move forward toward your goal.
Each person has a set point for wealth, based on your life experiences. For some people it’s all about cash flow. For most of us looking ahead to financial freedom, that freedom number ranges in the $Millions.
Your own definition of financial freedom will be key to your plans to get there. An arbitrary number is not useful. Instead, you need to back into your freedom number. It could include such criteria as:
- Own your home – mortgage-free
- Be completely debt-free
- Assets under management produce an unearned income stream that equals or exceeds your after-tax lifestyle expenses
- Legacy building trusts that preserve principal, minimize taxes or provide perpetual income for families, gifting or other philanthropic purposes
- Insurance policies to provide annuities
- Insurance policies to protect your estate in the case of a disability or long-term illness
Your freedom number is only a starting point, a compass heading for you and your advisors to work towards. Indeed, your freedom number will drive your determination to achieve those goals to produce wealth.