Financial Planning vs. Prosperity Economics
We believe in a different approach to financial planning using time-tested principles and strategies that predate the rise of 401k’s and the financial planning industry. The chart below gives an overview of Prosperity Economics as contrasted with typical financial planning:
| Financial Planning | Prosperity Economics |
|---|---|
| Meets needs & goals | Pursues wants & dreams |
| Minimizes requirements | Optimizes opportunities |
| Product oriented | Strategy oriented |
| Focused on rate of return | Focused on recovering opportunity cost |
| Institutions control your money | You control your money |
| Micro (vacuum) based | Macro (big picture) based |
| Net worth is measurement | Cash flow is measurement |
| Retirement oriented | Abundant/Freedom oriented |
| Lives only on interest | Spends and replaces principle |
| Money stays still | Money moves |
| Dollars do only one job | Dollars do many jobs |
| Professional planner is the expert | Clients are empowered |
Asset Tiers
In his book, Heads I Win Tails You Lose, author Patrick Donohoe introduces the concept of the Hierarchy of Wealth™ which is represented by this tiered pyramid. At Tier One Life Insurance, LLC, we believe that the way to building real wealth is to first focus on growing and protecting Tier One Assets, which include: our unique talents, the ability to create value and earn an income, and the money desired to support our dreams, and all of life’s opportunities. Tier One Assets form the foundation of financial strength necessary to build and sustain real wealth. They should be protected against loss and placed in an environment of uninterrupted growth and stability. They should be there when you need them most…Guaranteed.
