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  • 4 Types of People

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    Cherryber Urdaneta
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    The document outlines 4 phases of financial planning: 1) Income protection in case of early death 2) Asset preservation against taxes and creditors 3) Retirement funding from ages 50-70, intended to be a happy stage 4) Post-retirement funding after age 70, intended to avoid dependency on others for care due to potential health issues and depletion of savings It also describes 4 types of people in terms of how they live and die financially: living poor and dying poor, living rich but dying poor, living poor but dying rich, and successfully living rich and dying rich through financial planning.

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    4 TYPES OF PEOPLE

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    The document outlines 4 phases of financial planning: 1) Income protection in case of early death 2) Asset preservation against taxes and creditors 3) Retirement funding from ages 50-70, intended to be a happy stage 4) Post-retirement funding after age 70, intended to avoid dependency on others for care due to potential health issues and depletion of savings It also describes 4 types of people in terms of how they live and die financially: living poor and dying poor, living rich but dying poor, living poor but dying rich, and successfully living rich and dying rich through financial planning.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
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    11 views2 pages

    4 Types of People

    Uploaded by

    Cherryber Urdaneta
    The document outlines 4 phases of financial planning: 1) Income protection in case of early death 2) Asset preservation against taxes and creditors 3) Retirement funding from ages 50-70, intended to be a happy stage 4) Post-retirement funding after age 70, intended to avoid dependency on others for care due to potential health issues and depletion of savings It also describes 4 types of people in terms of how they live and die financially: living poor and dying poor, living rich but dying poor, living poor but dying rich, and successfully living rich and dying rich through financial planning.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
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    of 2

    PHASES IN FINANCIAL PLANNING

    1. First Phase - Dying too soon


    -Income Protection (because somebody has to
    continue living)

    2. Second Phase - Asset Preservation against taxes and creditors (for


    those who have accumulated properties/assets)

    3. Third Phase - Retirement Fund (voluntary/involuntary and as


    early as 50 yrs. old until age 70)
    - Happy Stage; healthy and have the freedom to
    move around and do things dreamed of doing.

    4. Fourth Phase - Post Retirement Fund ( 70 and over )


    - Sad Stage; sickly and retirement fund have been
    used up.
    - Most people are not prepared for this and have not
    planned this far during their productive years.
    - Back to being dependent on others for :
    a) Nursing Care
    b) Medical Care
    c) Financial Assistance from children
    - Loss of Dignity

    In order to accumulate wealth you have to be healthy.


    Our error lies in mentally fixing our future according to present conditions.
    Middle Life Crisis – Too tired to work but too broke to quit.
    Do you think retirement is cheap?

    People don’t want to run out of money before they die so they accumulate
    before they retire.
    Four Types Of People

    1. Live Poor, Die Poor - Those who are not willing to


    sacrifice and pay the price for a better and comfortable
    future. Financially unable to cope up with present needs due
    to poor planning and wrong priorities in handling budget.
    Can’t afford to pay life insurance premium.

    2. Live Rich, Die Poor - Too busy in accumulating assets


    & investing in ventures that usually promise high returns.
    Risk taker. Usually driven by greed and ambition but has not
    much concern of securing the future. Poor financial planner.
    Does not believe any financial plans or life insurance. Have
    a mindset that he is better able in handling his finances than
    entrusting it to a financial planner or to a financial institution.

    3. Live Poor, Die Rich - Always worried of the future.


    Savings thru the hard and old-fashioned way. Not willing to
    consider other alternatives. Not open to change. Believes
    that his savings program is good enough and religiously
    practices it.

    4. Live Rich, Die Rich - Believes in Financial Planning.


    Informed and intelligent planner who knows how to take
    advantage of risk free financial plans. Knows how to live a
    balanced life and is much able to take care of his needs and
    that of his family.

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