F I N A N C I A L L I T E R A C Y
INVESTMENT PLANNING Investment planning is the way to transform your savings into a steady stream of income which could ultimately lead you to financial freedom. Whether it’s stocks, real estate, or a combination of both you must first identify your risk tolerance, resources, skills, and short & long-term goals.
EDUCATIONAL PLANNING An education is one of the most important things you can give your children. In addition to the need to pay for tuition and classes, it’s important to start planning early. Knowing different strategies and options will help best in this category. The 529 plan is most commonly known, but there are other more flexible ways. TAX PLANNING Taxes are an unavoidable fact of life, but you can reduce your tax bill by knowing the ins and outs of the tax code. Avoid common mistakes that drive you to over-estimating your tax liability. Learn and take advantage of the different tax credits and deductions. The less you pay in taxes, the more you'll have to invest. Investors and business owners are known for getting many tax breaks and incentives. Not only that, but we take advantage of tax free money buy leveraging against assets, instead of liquidating. ASSET PROTECTION It is important to establish a protective trust or limited liability company in order to protect assets from loss. The key to this is planning ahead and making sure you research how best to set up your assets, for optimal protection. ESTATE PLANNING If you want to minimize wealth loss due to unnecessary estate administration expenses, taxes, delays and family disputes, you must pay careful attention to the estate planning regulations that affect you. It’s important to ensure that your family members not only get what they need to run their day lives but also are set up to keep the investments compounding for many generations. The path to wealth always starts with the belief you can be wealthy… no matter what your circumstances. Take the initiative and learn different perspectives. Follow me @jhanelwilson for more unconventional ways of achieving financial freedom. ▪
Holistic Wealth Management Begins with Financial Literacy JHANEL WILSON Starting out on your financial journey, it’s important to remind yourself of these facts. Financial literacy is incredibly important. It can help prevent financial mistakes, earn more money than you think possible, and build wealth that lasts generations. Having a holistic approach to your finances, you not only ensure all of your bases are covered - preventing loss, but also putting yourself in position to take advantage of compounding returns to reach your long term goals. Here are the financial pillars you need to support your finances. A weakness in one, has the possibility to derail them all. Learn and master each one, and you’ll be on your way to financial freedom, at a young age.
DEBT AND LOAN MANAGEMENT When it comes to loans and debt management, it’s wise to regularly review all your loans and credit cards. Know when and how to refinance and restructure loan for better financing terms and interest rates and always pay attention to fees. Knowing different strategies and various options helps you be fully prepared to take on leverage which exponentially increases returns in your chosen investment path. INSURANCES Insurance planning (health, life, car, home, umbrella) helps to protect you, your family, and your assets. To start, analyze the risk factors you are exposed to, quantify your possible financial loss and identify the necessary insurance products for your needs. Make sure you are not over insured, paying too much for anything is considered a loss. RETIREMENT PLANNING Retirement planning is a process that considers your current financial situation, future income, expenses and deciding the appropriate vehicle to fund your future lifestyle. Planning now will allow you to reap the benefits of compound interest as there is time for your money to work for you instead of having you working for it, or someone else.
Jhanel Wilson is a chemical engineer turned real estate investor and entrepreneur. As the founder and CEO of The Savvy REI, she shares her 17+ years of personal strategies and hard lessons to help people understand, master and succeed with real estate investing.
Photography by Kia Caldwell
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