Achieving Financial Independence: Goals-Based Planning

Michael J. Nathanson (), Jeffrey T. Craig (), Jennifer A. Geoghegan (), Nadine Gordon Lee (), Michael A. Haber (), Max B. Haspel (), Seth P. Hieken (), Matthew C. Ilteris (), D. Scott McDonald (), Joseph A. Salvati () and Stephen R. Stelljes ()
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Michael J. Nathanson: The Colony Group
Jeffrey T. Craig: The Colony Group
Jennifer A. Geoghegan: The Colony Group
Nadine Gordon Lee: The Colony Group
Michael A. Haber: The Colony Group
Max B. Haspel: The Colony Group
Seth P. Hieken: The Colony Group
Matthew C. Ilteris: The Colony Group
D. Scott McDonald: The Colony Group
Joseph A. Salvati: The Colony Group
Stephen R. Stelljes: The Colony Group

Chapter 6 in Personal Financial Planning for Executives and Entrepreneurs, 2021, pp 73-90 from Springer

Abstract: Abstract Achieving financial independence starts with a dispassionate, objective census of all resources, assets, opportunities, risks, and liabilities. The key to this exercise is the personal definition of one’s own goals, such as housing security, education, and retirement. Asset accumulation is relegated to a utilitarian role, as a marker of progress. Key assumptions must be made regarding: future income sources; future expenses; liabilities; inflation of expenses; and growth of investments. An actionable financial plan should be memorialized in writing and should be accompanied by supporting documents, including a balance sheet, stock-plan schedules, and a cash-flow plan. Monte Carlo analysis can offer a stress test on a straight-line cash-flow plan, but persistent monitoring and review are necessary to ensure that progress toward financial independence is not derailed.

Keywords: Goal-based planning; Liabilities; Persistent monitoring; Asset accumulation; Cash-flow plan (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/978-3-030-65400-9_6

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