Written Financial Plans are Invaluable Become the Captain of Your Financial Future

    I want you to stop thinking of yourself as an “investor.” Investing is only part of what you do… if you’re doing it right, that is.

    Rather, start thinking of yourself as the captain of your financial future.

    Investing is the sexy part of that role.

    But according to one financial firm’s recent commercial, there are two other parts to the all-encompassing role of Financial Captain – planning and protecting.

    Those are the not-so-sexy parts. In fact, I personally find them downright boring. Absolutely necessary, I’m quick to admit. But still, very… very… boring!

    Raise your hand if you’ve ever found yourself developing a childish excitement while talking through the riders on your long-term care policy.

    Raise your hand if you spend Friday nights calculating the differences in retirement withdrawal rates under varying inflation scenarios.

    How many hands are up? I’m willing to bet not many.

    Most people I know enjoy spending time on investments – finding the best ones, buying and selling them, and tallying their returns. But far fewer appreciate the value of time spent on financial planning.

    Yet, a successful captain must be well-rounded and equally focused on all major components of his role.

    To think of investing as sailing, they must plan their route, which includes choosing a specific destination, charting a course, and making alternate plans for if/when things go wrong.

    They must sail the ship, of course. That’s the fun, sexy, part.

    And they must protect their ship – against anything, from mechanical failure to natural disasters to pirates.

    Plan.

    Invest.

    Protect.

    Think about it this way…

    You’re a silk merchant in England and expect a shipment of goods you’ve ordered to arrive by sea on December 1… By January 1 there’s no sign of it and no word from the ship’s captain…

    Can you assume definitively that the captain doesn’t know how to sail?

    You can’t!

    His failure to arrive at port may be due to poor sailing skill. But the failure might just as easily be attributed to poor planning, or his failure to protect the ship from pirates.

    The captain’s sailing skills may have nothing to do with the failure to deliver.

    The same goes for the “captaining” of your financial future, I think.

    How much of a kick in the teeth would it be to be successful at investing, but still live a subpar financial life just because you failed to see the importance of planning and protecting?

    I don’t want that to happen to you!

    That’s why I’ll be devoting the entire month of November to one topic…

    Financial Planning with 10X Profits

    Standard financial planning generally covers the following topics:

    Goal setting, budget creation, establishment of emergency fund, debt payoff planning, retirement planning, planning for other major goals (i.e. college savings), insurance coverage and, finally, estate planning.

    Would you believe that most people in America don’t have a written financial plan that accounts for each of these important areas?

    According to a survey the Certified Financial Planner (CFP) Board of Standards commissioned:

    • 38% of Americans have a financial plan aimed at addressing one or two major goals (i.e. retirement or college savings), but “no comprehensive plan to put it all together.”
    • 33% of Americans have an even more limited financial plan, accounting for either one major savings goal, or a household budget, but not both. Further, they had no plans to develop a comprehensive financial plan within a year.
    • 10% of Americans have done “virtually no financial planning of any kind.”

    And that leaves just 19% of Americans who have a comprehensive, written financial plan.

    The CFP Board’s study concluded that those with a comprehensive financial plan enjoy a number of benefits, including increased confidence in their financial decision-making abilities, increased success in saving money and meeting major savings goals, and higher incomes.

    The study found that comprehensive planners reported higher confidence and satisfaction, regardless of their income bracket… proving that written financial plans are not merely luxuries of the ultra-wealthy.

    The bottom line is… everyone should have a written, comprehensive financial plan!

    Your 10x Profits Plan

    Like I said, this month I’m dedicated to helping you create a written investment plan specific to the 10X Profits strategy.

    I’ll help you “chart your course,” as we cover each of the major components required of an all-encompassing investment plan.

    That written investment plan will accomplish two things:

    • It will allow you to turn the standard 10X Profits model into an investment strategy that is custom-tailored to your specific needs.
    • It will increase your chances of sticking to the strategy with discipline, by removing any guesswork or grey areas from the process.

    I hope you agree that those are two worthy goals.

    Step #1 in this process involves having a look at a “SAMPLE” 10X Plan. So next week I’ll share this with you, covering every major component and fine detail that you will want to consider as you develop your plan.

    The sample plan won’t be tailored to your specific needs, but it will show you what a comprehensive 10X Plan should ultimately look like.

    That sample plan will address things like…

    • What is a reasonable goal for 10X Profits?
    • How much of my total net worth will I devote to the strategy?
    • Will I keep a “cash buffer,” or go “all in?”
    • Will I use “fixed” or “compounded” position sizing?
    • What will I do if I’m traveling and can’t access a computer every day?
    • What will I do if I have a really great year (or really bad year)?
    • What will I do if I reach my goal with 10X Profits?

    The sample plan will act as a “template.”

    From there, you’ll be able to make adjustments, aimed at addressing your specific needs, wants, and risk tolerance parameters.

    After I share with you that sample 10X Plan, I’ll dive deep into each major component of that plan… showing you a variety of ways you can address each component.

    For example, within the position sizing component of our comprehensive plan, I’ll explain the difference between fixed and compounded. I’ll show you numbers that highlight the pros and cons of each. And I’ll show you a “Goldilocks” alternative that strikes a nice balance between the two.

    By giving you several alternatives for position sizing, for example, I’m confident you’ll be able to choose the one that suits you best.

    can educate you on the various alternatives, and their key differences, but only you can decide which is best for your situation.

    The bottom line is…

    By the end of November, you’ll have a comprehensive, tailor-made 10X Plan. And you’ll be well on your way to truly becoming captain of your financial future!

    Current Position

    You should be positioned in the VelocityShares Inverse VIX Short-term ETN (Nasdaq: XIV) as of the open on June 12.

    For now, my model remains in “all clear,” risk-on mode.

    Note: If you’re just joining 10X Profits, you’re encouraged to buy into our current position – XIV – as soon as you’re ready. My market-timing model will always be invested in one of the two volatility products we trade (either XIV or VXX), so there’s no need to wait for the “next signal” to join in. Simply start small and buy into XIV when you’re ready.

    Stay disciplined,

    Adam