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.