Ultimate Financial Plan

Jim Stovall is among today's most sought-after motivational speakers. The author of fifteen books, including the bestselling The Ultimate Gift and The Ultimate Life, both of which have been made into major motion pictures by 20th Century Fox, he has been a champion Olympic weightlifter, a successful investment broker, and an entrepreneur. He is the cofounder and President of the Emmy Award–winning Narrative Television Network, which makes movies and television accessible for America's thirteen million blind and visually impaired people and their families. In June 2000, Stovall was selected as the International Humanitarian of the Year.Tim Maurer is a financial planner, educator, and blogger. He is Vice President of the Financial Consulate, a Fee-Only® financial management firm in Hunt Valley, Maryland. He teaches financial planning at his alma mater, Towson University, and educates through his blog, TimMaurer.com. Maurer has been a frequent guest on CNBC and featured on ABC's Nightline. The co-host of Money, Riches & Wealth, a weekly Baltimore radio show, he has contributed to the Wall Street Journal, the New York Times, the Washington Post, and Money magazine, among other leading publications.

• Foreword xi Preface xvAcknowledgments xixIntroduction xxiChapter 1 The Gift of Money: Money 101 1The Value of Money 3Money Beliefs 4Chapter 2 The Gift of Purpose: Personal Principles and Goals 7Personal Principles 7Goals 10Chapter 3 The Gift of Discipline: Household Cash Flow 17Personal Financial Statements 17Financial Crises 25Chapter 4 The Gift of Enough: Debt and Financial Freedom 27Financial Freedom 28The Danger of Discontent 29Emergency Reserves 32Bad Debt 35Better Debt 39Economics and Emotions 41The Cure for More 43Chapter 5 The Gift of Discernment: Risk Management Decisions 45The Accident 47Risk Management Techniques 48How Insurance Works 50Chapter 6 The Gift of Security: Life Insurance 55Life Insurance: Why? 55Life Insurance Needs 59Life Insurance: How? 62Life Insurance Wants 67Different Types of Life Insurance 70Purchasing Life Insurance 73Chapter 7 The Gift of Certainty: Auto, Home, and Liability Insurance 77Auto Insurance 79Homeowner’s Insurance 82Excess Liability (Umbrella) Insurance 84Chapter 8 The Gift of Health: Health, Disability Income, and Long-Term Care Insurance 87Health Insurance 89Types of Plans 89HSAs and FSAs 90Recent Health Insurance Changes 93Disability Income Insurance 95DI Moving Pieces 96Social Security, Medicaid, and Medicare 99Long-Term Care Insurance 100LTC Moving Pieces 101Chapter 9 The Gift of Clarity: Investing and Portfolio Management 107Stocks and Bonds 109All Things Considered Equal? 111Mutual Funds 112Economic Analysis 115Market Valuation Analysis 117Technical Market Analysis 118Efficient or Not? 119Passive versus Active 119Investing with “Style” 121Relative Return versus Absolute Return 123Index Huggers, Return Chasers, and Risk Managers 126Decisions, Decisions 128Chapter 10 The Gift of Transparency: Annuities 131Immediate Annuities 134Fixed Annuities 136Variable Annuities 137Equity Indexed Annuities 140Annuity Disadvantages 141Annuity Advantages 143Chapter 11 The Gift of Preparation: Tax Planning 147Tax Myths 150Tax Rules 155Chapter 12 The Gift of Learning: Education Planning 159Family Education Policy 162Having The Talk (no, not that talk) 166Education Savings Plan 169The 50 Percent Rule 172Chapter 13 The Gift of Fulfillment: Retirement Planning 175Retirement Past 179Retirement Present 180Retirement Future 180Employer-Sponsored Retirement Plans 181401k Rollovers 182Traditional IRAs 184Roth IRAs 185Traditional versus Roth 186Roth IRA Conversions 187Fulfillment Planning 189Retirement Makeover 193Chapter 14 The Ultimate Gift: Estate Planning 197Wills 200Durable Powers of Attorney 205Advance Directives 206Beneficiary Designations 208Probate 212Estate Tax 214Chapter 15 The Gift of Discretion: Choosing a Financial Advisor 217"The Big Three" 222Financial Planner Compensation 224Finding a Professional Planner 228Chapter 16 The Gift of Action: Your Plan for Money and Life 233Fundamental and Practical Change 234Reprise 235Stay Connected 238Notes 241About the Web Site 245About the Authors 247Index 249