Successful Leadership Depends on Sound Financial Planning

Mike Petrosky, financial adviser, Waddell & Reed, gave a financial strategy presentation during the chapter's Young AFCEAN Lunch and Learn event in July. Petrosky described the monthly cycle of finances as well as the financial cycle in the human lifespan, highlighting pitfalls to be aware of, considerations to make and strategies that can be adopted for success. Successful leadership depends on sound financial planning so it was compelling for members to learn of hidden or unexpected pitfalls and alternatives that they can employ to avoid pain and maintain happiness. An important focus of his presentation was learning to plan for the unexpected. To this end, Petrosky suggested that families should identify their annual and quarterly goals and assess their financial health. On a monthly basis he suggested setting a once or twice per month date to pay the regular recurring monthly expenses. A useful strategy he provided was to have all income deposited to the family savings account and then to have two checking accounts; one account for the regularly recurring expenses and one account for the amount of money the family anticipated they would need to spend for variable expenses during the time period. This strategy ensures that any extra money stays in the savings account. Another important strategy Petrosky suggested was to have an emergency fund in a separate local bank. The goal is to keep the fund out of sight and out of mind until it is absolutely needed, and then to require one's self to physically travel to the location to withdraw the funds that are needed. This helps to ensure that withdrawals are made only in the event of an emergency and not a spur of the moment desire. The presentation included several other useful topics including understanding the turbulence of financial markets and retirement and legacy planning. Following the event, Petrosky answered a variety of questions and made himself available to members for consultation.

Event Photographs: