It Depends On How You Look At It

2014.Feb02Probably because the rear view mirror in our car looks straight back, we tend to adjust the left and right side mirrors to look straight back too. The side mirrors can be even more useful if we re-adjust them to keep a passing vehicle in the side mirror until we pick it up with our own eyes.

With the side mirrors readjusted, we enjoy something close to a 180 degree sweep of the traffic behind and beside us. Those small adjustments make a big difference.

Financial planners can add the peripheral view to your wealth vision by suggesting small adjustments that can make a big difference. Better still, financial planners look ahead.

For example: a bachelor’s accountant told him he needed to buy a house to generate a mortgage interest deduction. The bachelor could not afford to buy a home near his office so he did not follow his accountant’s advice. A financial planner determined that the bachelor’s widowed mother owned the family home outright and was willing to sell it to her son by carrying a mortgage for the full fair market value.

She enjoyed the income; he enjoyed the interest deduction.