VeriPlan is designed to help you pursue scientifically based financial planning strategies
VeriPlan offers you unprecedented direct control to perform your own automated personal financial planning. VeriPlan’s functionality also implements the principles of scientific finance. VeriPlan’s internal documentation and its links to information on the web help you to understand scientifically based personal financial planning and investment strategies.
VeriPlan’s functionality reflects a belief that individuals will follow optimal, scientifically proven financial planning and investment strategies, if they understand them and have appropriate and powerful planning tools. VeriPlan’s simple premise is that people want to get the most out of their money in a manner that addresses their needs across their lifecycle. While this objective is a ‘no-brainer,’ achievement of this objective requires steady and conscientious implementation over a lifetime. VeriPlan helps you to understand and to adopt financial practices that are more likely to achieve your lifetime objectives.
Providing extensive documentation embedded directly into the product where you need to find it, VeriPlan explains why various features have been implemented and how to use them. In addition, by providing links to scientific finance articles on The Skilled Investor website and elsewhere on the web, VeriPlan helps you to understand scientifically based personal financial strategies.
Whether you are well off or you intend to become so, VeriPlan is capable of generating lifecycle projections about your financial affairs. Explicitly or implicitly, every financial tool is designed with certain points-of-view. If you use a financial planning tool like VeriPlan, you should understand its viewpoints. On a separate, internal “Viewpoints” worksheet, VeriPlan explains many of the viewpoints that have influenced its design. As a sampling, some of these viewpoints include:
* Your personal earnings, expenditures, and savings are the most important and most reliable determinants of your family’s long-term financial wealth. Pay the most attention to them.
* There is no such thing as risk-free money from investing for individuals. You need to allocate your financial assets in a manner that reflects your relative tolerance for investment risk. You need to stay in the securities markets to earn market risk premiums. You need to build asset buffers to protect yourself from unpredictable market volatility and unplanned personal financial setbacks.
* Passive, index-oriented investment strategies tend to be superior, because they narrow the range of outcomes, and thus, they reduce the total investment risk associated with your portfolio. You should always completely diversify your portfolio. Own investment funds rather than individual securities. VeriPlan can easily model and project the value of your individual securities holdings, but low cost, fully diversified funds are more likely to achieve your lifetime objectives.
* Excessive visible and hidden investment costs tend to reduce the potential growth and value of your portfolio unnecessarily and dramatically. Cut your investment costs aggressively and keep cutting them. Pay yourself and not someone else.
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personal financial strategies
Personal Financial Planning
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Even with optimal investment strategies, there is still substantial room to improve upon net investment performance through continued and vigilant focus on controlling investment costs and tax realization.
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- May 17 2007 Edition of the Carnival of Financial Planning (
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No financial planning software and no investment growth calculator can predict the future
The future is simply not predictable, even with automated financial planning software.
A previous financial article, “The Solution - ONLY follow financial strategies that are scientific, passive, diversified, savings focused, risk controlled, low cost, and tax efficient,” suggested that investors are much better off [...])
- Choose objective and competent financial advisers and investment counselors – Step 10 of 10 Financial Planning Steps in the Right Direction (CLICK HERE TO READ THE SKILLED INVESTOR's OTHER ARTICLES ABOUT THESE "10 FINANCIAL PLANNING STEPS IN THE RIGHT DIRECTION
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Commodity futures in your investment portfolio - Is there really any future for individual investors?
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- Best Financial Investment Articles (
Best Personal Financial Planning and Personal Investment Articles this Week from Personal Finance Blogs
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The Carnival of Financial Planning takes a long-term view of personal financial planning for individuals and families. We focus on efficient and sustainable personal financial planning practices that can lead to lifetime financial security. This [...])
- Set a Minimum Portfolio Size Threshold for Mutual Funds and ETFs (
Choose mutual funds and ETFs with a minimum economical portfolio size
If you are going to invest in actively managed funds, then you should want them to have a sufficiently large asset base to fund the necessary research.
If an active fund is too small, then fund management quality can suffer or fees could grow. Index funds [...])
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- Set your personal savings and other financial goals – Step 2 of 10 Financial Planning Steps in the Right Direction (CLICK HERE TO READ THE SKILLED INVESTOR's OTHER ARTICLES ABOUT THESE "10 FINANCIAL PLANNING STEPS IN THE RIGHT DIRECTION."
The single most significant financial lever that individuals control directly is their management of personal expenditures. The second is their lifetime effort to obtain sufficient income. Most people simply do not save enough of their current income [...])
- Does it matter how financial planners and investment advisors are paid? (
Yes, it can matter significantly how a financial advisor is paid.
The heart of the compensation issue is an advisor’s potential "conflict of interest" with respect to payments from third parties. Does third party compensation change the quality of the recommendations that the advisers make? If an advisor works on sales commissions or accepts other third [...])
- Understand Your Lifetime Personal Savings Requirements (
VeriPlan helps you to understand your lifetime personal savings requirements and whether your current savings rate is sufficient
How much you earn, spend, and save are by far the most dominant determinants of your long-term financial well-being.
You need a means to evaluate your current sustainable lifecycle consumption rate. VeriPlan provides such a means. VeriPlan projects your [...])
