Financial advisors charge significant fees. Due to costs, I always recommend a do-it-yourself approach if you are serious about achieving financial independence.
If you are looking for a step-by-step guide, you have come to the right place. I will take you through the framework used by most financial advisors, discuss proper investment allocations, and review tax-optimized savings accounts.
Before charting your specific investment plan, you first need to understand your current financial situation clearly.Do you know your net worth? If not, your first step is to calculate this number.
Assets include everything you own. Common assets may include:– Cash in checking and savings accounts.– CDs or government savings bonds.– Total value in all investment accounts
Your liabilities include all the debt you may have accumulated:– Student loans– Credit card debt– Car loans– Mortgages and home equity loans– Loans financed against expensive purchases