Episode 180 – November 23, 2024. Segment 4: Blending defensive and offensive strategies for financial success

Defensive Strategies

1. Budgeting & Debt Reduction:
   • Build a budget, reduce debt, and establish an emergency fund.
2. Life Insurance:
   • Use term insurance for income protection.
   • Consider indexed universal life insurance for tax-free savings and final expenses.
3. Estate Planning:
   • Prepare documents like wills, living trusts, and powers of attorney to avoid complications for heirs.
   • Example: Steve McNair’s estate complications underline the importance of planning.
4. Health & Disability Coverage:
   • Utilize health-sharing plans, high-deductible policies, and HSAs for tax advantages.
   • Consider disability and long-term care insurance for unexpected events.
5. Liability Protection:
   • Umbrella policies and raising deductibles help manage risks as finances grow.
6. Asset Allocation & Annuities:
   • Shift investment strategies to reduce market risk near retirement.
   • Annuities provide guaranteed income and mitigate longevity risk.
7. Equity Lines of Credit:
   • Establish these during employment for emergencies or opportunities.

Offensive Strategies

1. Home Ownership:
   • Buy conservatively to avoid overextending.
2. Retirement Contributions & College Savings:
   • Maximize retirement accounts and consider 529 plans for education.
3. Investments:
   • Focus on growth assets, tax-deferred annuities, and real estate.
4. Real Estate Considerations:
   • Rentals can be lucrative but require hands-on management.

Holistic Approach

• Combine defensive and offensive strategies, supported by tailored financial products, for a complete financial plan.
• Listeners are encouraged to schedule low-pressure consultations to assess goals and build their plans.

Roy concludes by reminding listeners of the resources available on his website and podcast for ongoing financial education.