According to the news, Paul Manafort is in a bit of trouble, is a big spender, is broke and cheated on his taxes. All alleged since none of this has been proven or admitted to. However, this is not about him, but about people that think they lead a charmed life, buy whatever they want, believe they will never run out of money and can do whatever they want to maintain that lifestyle.
If you have been following my blogs you will know that I am concerned about clients’ future financial security. Part of achieving that is investing sensibly for the future; and/or reducing current spending so you don’t have to curtail essential spending later on. Excessive spending to feed an ego or present an image that tries to elicit envy from others is a fool’s game. Nobody cares. There might be a momentary glimmer of admiration and then it is gone just as quickly being replaced by the expected results and benefits from the relationship or encounter. Being a legend in your own mind is just that.
So-called power brokers certainly need to appear to have access to decision-makers, so the image is part of the persona, but the delivery of value is the ultimate test, and many times that doesn’t follow. Empty suits don’t remain tall.
Some people have substantial value in houses and occasionally more than one property. However, as you get older and slow down, it is cash flow that becomes important and not the asset values. Cash comes from earnings, pensions, and interest and dividends; not from houses…or art or other tangible objects of value. For long term financial security it is necessary to arrange your affairs so you will have a steady reliable stream of cash flow. Further, conventional mortgages are made to people with adequate cash flow able to make the payments, not those with their value residing solely in real estate sans cash flow. There is an exception for reverse mortgages but I recommend that only as a last resort.
Wasteful spending without abandon is a travesty to your and your family’s future financial security. Tomorrow does come except if you are dead. Make tomorrow the tomorrow you want it to be by making today a sensible today.
Do not hesitate to contact me with any business or financial questions at [email protected] or fill out the form below.
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