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 PlanningProsperity Economics
Meets needs & goalsPursues wants & dreams
Minimizes requirementsOptimizes opportunities
Product orientedStrategy oriented
Focused on rate of returnFocused on recovering opportunity cost
Institutions control your moneyYou control your money
Micro (vacuum) basedMacro (big picture) based
Net worth is measurementCash flow is measurement
Retirement orientedAbundant/Freedom oriented
Lives only on interestSpends and replaces principle
Money stays stillMoney moves
Dollars do only one jobDollars do many jobs
Professional planner is the expertClients 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.

Learn more about how we can help you achieve your financial goals with this free eCourse, Perpetual Wealth 101