Money Is Not Math & Math Is Not Money

Yes, money has numbers on it but, money is not math. Math is an accurate science while money is a commodity. They are not the same. With math we know 3+4=7. But with money we have to consider human behavior and the variables of inflation, taxes, lawsuits, planned obsolescence, illness, political issues, market fluctuations and the propensity to consume. No verifiable equation to calculate the impact on one’s money.

My first career was in aerospace. I worked on projects for 3 airplanes. I can tell you for a fact that all systems have two to four redundancies (“in case of failure in other components”). I would submit that typical financial planning has no redundancies. That can be a problem.

In my practice and firm, we approach the financial planning process macro-economically to integrate and engineer into the plan the advantages of products while diminishing disadvantages. On the other hand, what I have seen over the years in the financial profession, much planning is done micro-economically. That is to say looking at one decision at a time which leads to a lack of coordination and integration.

Issues such as:

• Making out a retirement plan
• Paying off a mortgage
• Using insurance products
• Where and when to invest. These are single decisions, but they all have an impact on how far one’s money will take them.

So, ask yourself these questions

• Is this the most efficient and effective use of my money?
• Does my plan have any built-in redundancies?
• Can it be verified?

Money is not math, but money does provide freedom. You deserve to make the most of it. Are you?

Here at Virtus Wealth Management we offer in depth financial planning, if this is something that might be of interest to you, please feel free to call us at 817-717-3812.  We would love the opportunity to help you make the most of it!