Drive for show, Putt for dough

Drive for show, putt for dough. Many people may have heard this golf analogy before. Basically, it is saying it is sexy to hit your drive into the next town but if you want to really make money you have to putt well. Unfortunately for many of us, we fall into the trap of having the desire to be sexy.

When it comes to our personal financial plan many of us have taken the exact same approach. With the way the stock market gets idolized for its terrific gains, the housing market – how it can never lose, and now gold with how it's going to continue to go up in value because the ultimate decline of the dollar and how "everyone is scared and needs a safe investment." Although things and people say certain avenues are safe for investing please understand that there is also significant risk in all of those avenues. Now, I'm not saying to not invest in any of those places, but I will say there is a time and place to do so in your financial plan.

In creating your financial plan what most gets overlooked tends to be the base or the foundation which you actually build your plan on. You wouldn't go out to Home Depot and purchase everything you need to build a home and start building it on the ground without a foundation, would you? Consider your financial plan just like building a home. Your foundation needs to be strong and able to stand and hold up your building or plan, otherwise when something unexpected comes along, your building or plan may not be able to withstand the unexpected.

Take a look at the Financial Planning Pyramid to start to take inventory of what you already have in place. If you don't have your base or foundation covered, perhaps you should consider stabilizing your plan. Why not set something up to ensure your plan works regardless of the disaster happening or not? Remember, if your plan isn't strong enough to hold up when the unexpected comes along, you are essentially driving for show, but not putting for dough.

Resurgence of Whole Life

A day that changed my outlook

A day that changed my outlook

I cannot quite remember the exact date, but I do know it was a Friday sometime this last winter. It was the first time I was a guest at a NAIFA meeting at the Contra Costa Country Club. NAIFA (National Association of Insurance and Financial Advisors) holds monthly breakfast meetings for its members for educational purposes and networking opportunities.

At this particular meeting, the speaker failed to show up. As I recall, I was very much looking forward to the speaker, so I was particularly bummed. Little did I know at the time, I would be blown away by the conviction of the stand-in speaker. The president of the chapter apologized to everyone for the miscommunication with the speaker of the day, and asked politely if we could have someone step up and offer some stories. Up walks this older round faced individual to grab the microphone. Just as he begins to speak I am somehow reminded by his voice that I have heard him speak before. This gentleman who was a former NAIFA president, was none other than Dick Callahan, the Oakland A's/Golden State Warriors announcer!

Having no prepared speech, Mr. Callahan pulled from his library of stories that had amassed through the years to pull out some real special cases he had worked on, but one in particular still stung for him to think about because it was a recent case. He had a particular client for years. This client had recently needed to replace a life insurance policy that just had finished its term period. The client was an older gentleman somewhere near 70 years old. The client still was able to get insurance, but compared to his last term policy the premiums were significantly higher for the same amount of coverage. Because of this, the client decided to change the face amount to half of what it was before. The client still had a lovely wife…as Mr. Callahan was speaking a noticeable change in his voice occurred.

The client that Mr. Callahan was referring to passed away 2 weeks earlier. Mr. Callahan was noticeably upset at the loss of a client, someone who had become a friend, but mostly he was upset because he believed he didn't do a "good enough job pushing the client into keeping the same coverage." Although delivering a $500,000 check to the wife was not a bad thing, Mr. Callahan believed it should have been $1,000,000. Everyone knows $1,000,000 goes further than $500,000.

I was touched because although Mr. Callahan is extremely successful, it wasn't about the money to him. It was about providing for others. It was about walking up to that widow and offering condolences with a check in hand, something that would provide a little comfort amidst the turmoil of dealing with the loss of her husband of so many years. What struck me deeply was Mr. Callahan's conviction that he didn't do enough. As the tears rolled down his cheeks I realized that this isn't about how much money we all could make, it's about how much we all can make a difference to the people we call our clients.

I sat and ate breakfast that morning with Mr. Callahan, and although I doubt he remembers who I am, I will always remember that winter morning that changed my life…

Friday September 5, 2008…thoughts to remember

I originally wrote this last year on Friday September 5, 2008. I was at a funeral for someone I did not know, but was a dear friend to many others, including my wife, Dana. I feel it is appropriate due to September being Life Insurance Awareness Month.

As I sit here I am reminded how short time we have in this we call "life". I am reminded of all the beautiful places I have seen , the wondrous events I have been a part of, and how many people that have actually made a difference in my life. I am thankful for being able to acknowledge the very present. To know where you are at any given time and be at one with that place with the understanding that you will never have that moment again. How different would we all behave if we all took that knowledge? Would we all choose to take a higher road?

I didn't know this man Tom whose funeral I am at but I am thankful for the inspiration I have gained by coming. It has reminded me to choose the high road and that we all have choices and to try harder to choose happiness. For each moment we choose something other than happiness we lose that moment we could have, and should have chosen happiness.

So, choose happiness and know that it is a personal choice and not something another can give but something another can take if you choose to let them. I hope when it is my time to walk out of this life, that all the good times will rush back to me and I leave with a smile of knowing maybe I had given a few smiles to others along the way.

Let me take a moment to explain why I have life insurance, but why I believe in it so much. You see, before getting into the industry, I didn't believe in life insurance at all. In fact, I felt it was such a waste of money! I had even a worse taste in my mouth since my previous experience with a life insurance person, and company were of total deceit! One person told me a blatant lie, and I bought it! I vow to never, ever have someone I do business with walk away without understanding or the feeling like they have been "sold".

I have life insurance for two main reasons: 1) to provide a benefit to my wife. If you really want to know the truth, I feel under insured even though I have a $1,000,000 policy. What this provides her is the ability to pay off the mortgage if she chooses to do so, eliminate any and all debts we may have and also to provide a cushion to enable her to do whatever she wants to do. If she chooses to go back to work, that is entirely up to her. However, my point is life without me in it will be difficult for her to cope with let alone try and go back to work within a little time (at least I hope it would be). I want her to live life, travel, do all the things she's always wanted to do, start her dream business and not have to worry about trying to make it because my life insurance will provide that. 2) I believe in using life insurance as a retirement supplement. I believe in the benefit of tax deferred growth with guarantees with the option of pulling from it in tax advantaged ways. I believe in leaving a legacy and providing for my retirement dreams and goals.

I want to help people achieve their goals and beyond. That is why I do what I do. That is why I believe in what I believe. I want people to leave with a smile, knowing exactly what they want and need and how to get there.