From Settlement to Security: Crafting a Smart Financial Future with AJ Toce Financial Expert

Unlock the secrets of turning a hefty settlement into lasting financial security. Financial expert from Toss Financial joins us to unpack a strategy that starts with a simple act: setting aside the first 5% of your settlement. From there, we tackle the critical task of erasing high-interest debt, emphasizing how paying these off is akin to securing a guaranteed return on your investment. Our expert guest guides you through the steps to build a robust emergency fund, ensuring you have the cash reserves necessary before plunging into the world of investing.

Prepare for a journey into smart investing, where we highlight the power of long-term growth through low-cost index funds. With insights on balancing risks and rewards, this episode empowers you to make educated investment choices that align with your risk appetite. And don't forget that initial 5%—designated as your guilt-free reward for establishing a stable financial future. Join us to gain valuable advice that will enhance your financial planning, allowing you to focus on what truly matters: your family's well-being and your future aspirations.

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This show is co-produced by Carter Simoneaux of AcadianaCasts Network, Chaz H. Roberts of Chaz Roberts Law and Kayli Guidry Bonin of Beau The Agency, and Laith Alferahin. 

Transcript

Speaker 1 0:03

My client gets a big settlement six figures or above . What should they do with their money ? So the first thing that I would tell you to do is take 5% . We're going to think about this in percentage terms , not dollar terms . So take the first 5% and set it aside . I'll tell you what to do with that at the end .

Speaker 1 0:19

The next thing we're going to do is look at your debts . We need to knock out high interest debt . The higher the interest rate , the more urgent it is that you pay it off . So if you've got a 26% credit card , you're going to make 26% by paying that off . You need to do it . I know it doesn't feel good having that money come in your account and then just leave right after we got to get rid of the debt . Next thing we're going to do is set your emergency fund . You don't ever want to be in a spot where you have investments but no cash . So we want to have about six months . Look at your expenses and accumulate six months of expenses that you put in a high interest savings account and you don't touch it until you need it for emergencies .

Speaker 1 0:59

Okay , once you've done those things , you need to invest your money . You need to invest . Investing involves risk . You can decide how much risk you want to take , but you need to take that money , commit to not spending it or taking it out for several years , and invest that money in the market .

Speaker 1 1:20

I recommend passive investments , low cost index funds , and you don't have to pay a lot of attention to it . You just need to let the money sit there and grow and once you've done those things , you're set up for success and you can worry about taking care of your family and spending time with your kids . And if you need somebody to help you do these things , toss Financial is here for you and you say you're going to come back to that 5% what's that things ? Toss Financial is here for you and you say you're going to come back to that 5% . What's that for ? So that 5% is for you to congratulate yourself for doing the right things with the other 95% of your money and you're going to take care of yourself and you're going to be able to do it guilt-free , because you know that you're set up and you know that you already have a plan in place that allows you to spend this money .