SLOW & STEADY.

WINS THE RACE.

10-STEP GUIDE TO SECURING

YOUR FINANCIAL FUTURE

BY TAE KIM

FINANCIAL TORTOISE
HI, I'M TAE.
I’m a Personal Finance Enthusiast, Blogger and a
YouTuber.

As the name 'Financial Tortoise' implies, I firmly believe

in getting rich slowly. Slow and steady is the name of
the game and I firmly believe in this mantra.

In the last decade, my wife and I had our fair share of

lessons learned as we went from being under $105,000
of student loans to achieving financial security.

It took us a while. And it took a lot of work. However,

by being patient and steady with our progress, we got
there.

In this guide, I want to share with you 10 steps you can

take to secure your family's financial future as well.

- Tae

Financial Tortoise

FINANCIAL TORTOISE | 2
10-STEPS TO SECURING YOUR FAMILY'S
FINANCIAL FUTURE
1) SAVE 3-6 MONTHS OF EMERGENCY FUND
2) PAY DOWN ALL NON-MORTGAGE DEBT
3) PROTECT YOUR FAMILY WITH APPROPRIATE INSURANCE
4) MAX OUT YOUR RETIREMENT ACCOUNTS
5) INVEST IN LOW COST INDEX FUNDS
6) SAVE FOR YOUR CHILDREN’S COLLEGE FUND
7) PREPARE YOUR ESTATE PLAN
8) HAVE THE MONEY TALK WITH YOUR AGING PARENTS
9) ENSURE YOUR PARENTS HAVE APPROPRIATE LEGAL PAPERWORK
10) BUY BACK TIME WITH FINANCIAL INDEPENDENCE

FINANCIAL TORTOISE | 3
STEP 1

SAVE 3-6
MONTHS OF
EMERGENCY
FUND
"Your emergency fund is not an
investment, it's insurance with one
purpose - to protect your family."
- Dave Ramsey

FINANCIAL TORTOISE | 4
STEP 1
SAVE 3-6 MONTHS OF EMERGENCY FUND

If any of you guys have ever bowled as a child, you

might remember using what's called 'bumpers' or 'guard
rails'

These bumpers would essentially keep your bowling ball

from falling into the gutter.

They kept you in the game even though you might have
launched the ball improperly or your ball started
spinning in the wrong direction.

Think of emergency funds like these bowling bumpers.

In your journey to debt paydown, investing or financial

independence, emergency funds ensure you don't get
derailed and help you stay committed to your goal.

They help you to stay on track regardless of what life

event may come at you.

Maintaining a 3-6 months of emergency fund is one of

the most important things you can do for yourself and
your family.

FINANCIAL TORTOISE | 5
Emergencies can happen to anyone, at any time, and it's
important to have savings in place to cover those
unexpected expenses.

Unfortunately, only 39%of Americans have enough

savings to cover a $1000 emergency. If something
unexpected comes up and you don’t have the cash on
hand, you could be in for a world of hurt.

If you don't have an emergency fund today, make this

your priority.

And don't consider your investment accounts or your

home equity as your emergency fund.

You want this money to be accessible - fancy financial

term, "liquid."

Your goal isn't to make money from this account.

The goal of this money is to help you deal with the

unexpected emergencies without derailing your overall
life plan.

FINANCIAL TORTOISE | 6
STEP 2

PAY DOWN ALL

NON-
MORTGAGE
DEBT
"Better to go to bed hungry than to
wake up in debt."
- Proverbs

FINANCIAL TORTOISE | 7
STEP 2
PAY DOWN ALL NON-MORTGAGE DEBT

If you're looking for a way to get ahead financially, one

of the best things you can do is pay down all your non-
mortgage debt.

This will reduce your monthly expenses and help you

save money and achieve financial security in the long
run.

Unfortunately, too many Americans are saddled with

debt to the point where they struggle to afford basic
necessities

According to BankRate, the average American consumer

debt is now up to $93 thousand dollars.

75% of Americans carry credit balance from month to

month.

Nearly a quarter of U.S. adults have personal loans

against their names.

Unlike a fixed mortgage loan with low interest rates,

these types of loans can get individuals into trouble very
quickly, if not handled well.

FINANCIAL TORTOISE | 8
Here are five tips to help you get started.

Step One - Understand What You Owe And How Much

You Owe. Unless you know what the problem is, you
can't work to fix it. So start by collecting all the
documents related to all the money you owe and make a
list.

Step Two - Track Your Expenses. It doesn't matter how

fancy your investment vehicle is or how well you
restructure your debt - if you can't manage your
expenses, you will always be playing catch up.

Step Three - Cut Back To Your Minimal Living Expense.

After you have tracked your expenses and you have a
good understanding of where your money is going, you
need to go back now and cut out all the wants from your
list.

Step Four - Pay Off Debt. There are two strategies that
I like to recommend. Debt Snowball Method or the
Avalanche Method. You can't go wrong with either
method.

Step Five: Make More Money. If you've cut back as much

as you can and there are still not enough money to pay
off your debt - there is just no way around it. Explore
side hustles or take on more responsibilities at work.

FINANCIAL TORTOISE | 9
STEP 3

PROTECT YOUR
FAMILY WITH
APPROPRIATE
INSURANCE
"If a child, spouse, a life partner, or
a parent depends on you and your
income, you need life insurance."
- Suze Orman

FINANCIAL TORTOISE | 10
STEP 3
PROTECT YOUR FAMILY WITH APPROPRIATE INSURANCE

It's no secret that life can be unpredictable.

One moment you're planning for the future and the next
you're dealing with a major unexpected event.

While there's no way to completely protect yourself from

every possible outcome, having insurance can help
provide some peace of mind in case something tragic
happens.

And this is especially important if you have family

members that are dependent upon you; your spouse,
your children and possibly even your aging parents.

It's paramount that you protect yourself and your loved

ones with adequate insurance.

Here are five insurances you can't live without:

1 | Life Insurance: If something happens to you, life

insurance can help provide financial stability for your
loved ones. This type of policy pays out a lump sum of
money to your beneficiaries in the event of your death.

FINANCIAL TORTOISE | 11
2| Health Insurance: With the high cost of medical care
today, health insurance is just as important as life
insurance. It helps protect you and your family from any
unexpected medical expenses that might arise,
especially if someone has a chronic illness or pre-
existing condition.

3 | Disability Insurance: One in four people will

become disabled at some point during their working
years. If you become unable to work due to an accident
or illness, disability insurance can help cover some of
your expenses.

4| Home Insurance: The minute you close on a home,

it's important to get homeowner's insurance so if
anything happens to the property - whether due to
weather damage or theft - can be covered by your
policy. Without this type of protection, you could be on
the hook for tens of thousands of dollars.

5| Car Insurance: If you're driving without car

insurance, you're breaking the law. In most states, it's
required by law to have some type of coverage. But car
insurance isn't just for protecting yourself from getting
pulled over. If you're in an accident and the other driver
is at fault, their insurance will help cover your costs - up
to the limits of their policy.

FINANCIAL TORTOISE | 12
STEP 4

MAX OUT
YOUR
RETIREMENT
ACCOUNTS
“As in all successful ventures, the
foundation of a good retirement is
planning.”
– Earl Nightingale

FINANCIAL TORTOISE | 13
STEP 4
MAX OUT YOUR RETIREMENT ACCOUNTS

Are you maximizing your retirement accounts? You

should be. Not only do retirement accounts offer
immediate tax breaks, but they can also help you save
money on your taxes in the long run.

So make sure you are taking full advantage of them.

Here are some tips on how to do just that.

Tip # One: Contribute as much as you can to your

retirement account each year.

The more money you put into your retirement account,

the more money you will have saved up when it comes
time to retire. And the earlier you start saving, the
better. So make sure you are contributing as much as
possible each year.

Few of the popular retirement accounts out there are

Employer-Based Tax-Advantaged Buckets like the 401(k)
and Roth 401(k).

There are also Individual-Based Tax-Advantaged Buckets

like the IRA - Individual Retirement Accounts and Roth
IRA. Quick summary of what each are:

FINANCIAL TORTOISE | 14
 401(k): Immediate tax benefits and tax-free growth.
But taxes are due when the money is withdrawn.

Roth 401(k): No immediate tax benefit, tax-free

growth and no taxes due on withdrawal.

Traditional IRA: Immediate tax benefits and tax-

free growth. But taxes are due when the money is
withdrawn. Deductibility is phased out over certain
income levels so check the IRS website for updates.

Roth IRA: No immediate tax benefit, tax-free growth

and no taxes due on withdrawal. Eligibility to
contribute phases out over certain income limits.

Tip # Two: Invest your retirement account money wisely.

Just because you are contributing to a retirement

account doesn't mean you are finished. You want to
invest that money in investments that offer good returns.

My favorite investments are low cost index funds. Index

funds are a type of mutual fund that track the
performance of an index, such as the S&P 500 or the
Total Stock Market.

See step 5 for why low cost index funds are great
investment vehicles!

FINANCIAL TORTOISE | 15
STEP 5

INVEST IN LOW
COST INDEX
FUNDS
"If you don't find a way to make
money while you sleep, you will
work until you die."
- Warren Buffet

FINANCIAL TORTOISE | 16
STEP 5
INVEST IN LOW COST INDEX FUNDS

When you are investing, I believe the best investment

vehicle for the majority of people are low cost index
funds.

An index fund is an investment that basically tracks the

stock market,

You might have heard of terms like S&P 500 or the Dow
Jones Industrial Average.

Instead of trying to pick stocks and manage assets - the

index simply tracks the stock market.

And in my personal opinion, the king of all index funds is

Vanguard’s Total Stock Market Index Fund. Also known
as VTSAX.

The total stock market index represents every publicly

traded company in the United States. At the time of
this writing, there are approximately 3,700 companies
being represented.

When you are purchasing a share of VTSAX, you are

essentially buying a piece of every publicly traded
company in the US.

FINANCIAL TORTOISE | 17
Few reasons why I love index funds and VTSAX as the
go-to investment vehicle.

Simple - The index fund just tracks the market. There

is no complicated math that says if this stock or this
fund can do better than the index. You just need to
hold this one fund and you are good to go. It doesn't
get any simpler than this.

Low Cost - No person is making the buy or sell decisions

in an Index Fund. A formula takes care of all that
because it isn't trying to beat the market. It is just
following the market. And because there are no fund
managers and analysts the fund needs to pay for, it can
keep its annual expense quite low.

Diversification - With VTSAX, you get exposure to every

publicly traded company in the US.

Performance - Over time, index funds outperform

actively managed funds in most cases. This has been
proven again and again over multiple studies.

Self Cleansing – Because all companies are working

hard to create value for its shareholders, there is
endless upward potential for the stocks to go up.
However, the lowest a company can go is $0.

FINANCIAL TORTOISE | 18
STEP 6

SAVE FOR
YOUR
CHILDREN’S
COLLEGE FUND
“An investment in knowledge pays
the best interest”
- Benjamin Franklin

FINANCIAL TORTOISE | 19
STEP 6
SAVE FOR YOUR CHILDREN’S COLLEGE FUND

In the United States, a college degree is often seen as a

prerequisite for many high-paying jobs.

And as parents, we all want to give our children the best

chance for success.

So regardless of whether our children choose to attend

a 4 year college or a trade school, it would be in our
best interest to start saving for their future education.

Here are a few tips to get started.

Start Early: It's never too early to start saving for your
children's college fund. Even if you can only afford to
put away a small amount each month, it will add up in
the long run.

In addition, the earlier you start, the more time your

money will have to grow.

Consider 529 College Savings Plan: A 529 plan is a

tax-advantaged investment account specifically
designed to help save for college expenses. There are
two types of plans: prepaid tuition plans and college
savings plans.

FINANCIAL TORTOISE | 20
With a prepaid tuition plan, you purchase credits or
units at current prices that can be used later to pay
tuition at participating colleges and universities.

A college savings plan, on the other hand, allows you to

invest your money in a variety of different ways,
including stocks, bonds and mutual funds. The money you
save in a 529 plan grows tax-deferred, and qualified
withdrawals are free from federal tax.

Invest In Index Funds / Target Enrollment Portfolio:

You don't want your college fund to sit in a low-yield
savings account. Investment firms like Vanguard make it
easy to select the right investment for your 529 with
products like Target Enrollment Portfolio. You just
select the year in which your child will attend college
and all the appropriate diversification and asset
allocation is done for you.

Choose Wisely: When it comes time to choose a

college, compare costs at different schools before
making your decision. Consider whether the school
offers a good return on investment.

Many students and parents select colleges based on

emotion rather than logic. This will likely be one of the
most expensive purchases we will make in our lifetime.
Choose wisely.

FINANCIAL TORTOISE | 21
STEP 7

PREPARE YOUR
ESTATE PLAN
"By failing to prepare, you are
preparing to fail."
- Benjamin Franklin

FINANCIAL TORTOISE | 22
STEP 7
PREPARE YOUR ESTATE PLAN

No one likes to think about death, but proper estate

planning is one of the most important things you can do
for yourself and your loved ones.

By making a plan now, you can ensure that your wishes

are carried out after you're gone and that your family is
taken care of.

There are many different ways to prepare your estate, so

consult with an attorney who can help you find the best
option for your needs.

However, here are some tips to get you started:

1 | Make a List - The first step is to make a list of your

assets and liabilities.

This will help you determine how much money you'll need
to leave behind for your loved ones.

It's also important to include any special instructions in

your estate plan, such as who should take care of your
pet or what should be done with your car after you pass.

FINANCIAL TORTOISE | 23
2 | Think of an Executor - The executor is responsible
for carrying out your wishes after you die, so it's
important to choose someone you trust who can handle
this responsibility.

This person should be able to make decisions quickly

and have a good understanding of your financial
situation.

3 | Think of a Guardian - If you have children, it's

important to choose a guardian who will take care of
them after you're gone.

This person should be someone your kids are

comfortable with and can rely on to provide for their
needs.

4 | Consider Your Beneficiaries - It's also a good idea

to consider your beneficiary designations.

This is the information that you fill out on forms like

bank accounts, life insurance policies and retirement
plans to designate who should receive these assets
after you're gone.

FINANCIAL TORTOISE | 24
STEP 8

HAVE THE
MONEY TALK
WITH YOUR
AGING
PARENTS
"Nearly half of boomers haven't
saved anything for retirement."
- Insured Retirement Institute

FINANCIAL TORTOISE | 25
STEP 8
HAVE THE MONEY TALK WITH YOUR AGING PARENTS

Whether your aging parents have their finances in order

or they didn't save for retirement, there comes a point in
all our lives when we need to have the 'money'
conversation with our aging parents.

Here are five tips for having the money talk:

1 | Ask For Advice - Parents are reluctant to open about

money because they feel uncomfortable about the
decisions they’ve made.

However, if you approach the conversation with a

“posture of asking for help,” they might be more open
about their own financial situation.

2 | Use A Story - Stories are a great way to get your

parents talking about money.

For example, you could share how you saw a news

article about the artist formerly known as prince and
how he had a lot of money but he died without a will or
an estate plan.

This type of conversation could naturally warm up to a

conversation about their finances.

FINANCIAL TORTOISE | 26
3 | Share Your Own Financial Experience - Your
parents may be more willing to talk about money if you
share your own financial experience, even if it’s just
what you’ve been learning from watching youtube
channels or reading personal finance blogs.

This will help them feel like they are not the only ones
who have made mistakes with their finances and that
you are there to support them.

4 | Don't Start the Conversation With Money -

Sometimes, it's important to not start the conversation
with money. Instead, start by asking about their day or
how things are going.

This will help to put them at ease and make it easier for
them to talk about more difficult topics like money.
Eventually, the conversation could turn to money but
you want it to be a natural progression.

5 | Anchor Off Current Events - If you are having the

conversation when something major is happening in your
parents lives then try to anchor off of that.

For example, if they make a big purchase or plan on

moving in with one of their kids, use this as an
opportunity for them to talk about how it will affect
their finances and make sure everything is planned out.

FINANCIAL TORTOISE | 27
STEP 9

ENSURE YOUR
PARENTS HAVE
APPROPRIATE
LEGAL
PAPERWORK
"By spelling out what they want, it
will make things easier for loved
ones they leave behind."
- Cameron Huddleston

FINANCIAL TORTOISE | 28
STEP 9
ENSURE YOUR PARENTS HAVE APPROPRIATE LEGAL
PAPERWORK

There are three important legal documents your parents

should prepare as they age.

It will be difficult having this discussion with your

parents, however, it’s better to have this awkward
discussion now than when your parents are at the
hospital.

Or god forbid, their mental health has declined to a

point where they can’t ‘legally’ make decisions for
themselves.

By thinking ahead and preparing now, you are taking

care of your family in the future; your parents, yourself
and your children.

And I am not a lawyer, so please consult a professional

lawyer when preparing these documents because every
situation is unique.

1 | Power of Attorney - Also called a ‘Financial Power of

Attorney.’ This is a legal document that allows you to
designate an ‘agent’ to make all your financial and
business decisions.

FINANCIAL TORTOISE | 29
This would be used if one of your parents were at the
hospital and not able to make financial decisions.

With this document, the “agent” listed on this document

would be able to make financial decisions on your
parents behalf.

2 | Healthcare Power of Attorney - This document

allows an individual to appoint a healthcare agent. This
agent can access his or her medical records and make
medical decisions on his or her behalf (when he or she is
no longer able to).

Essentially if you are incapacitated, the person

designated as the agent in a healthcare power of
attorney can make decisions as regards to your medical
care.

3 | Living Will (aka Advanced Medical Directive) -

This document states an individual’s last medical wishes
when he or she can’t communicate them anymore.

It is very important that the agent listed in the

healthcare power of attorney is familiar with your
parent’s medical wishes.

This document comes into effect with a chronic illness or

disease

FINANCIAL TORTOISE | 30
STEP 10

BUY BACK
TIME WITH
FINANCIAL
INDEPENDENCE
“There are many things money can
buy, but the most valuable of all is
freedom. Freedom to do what you
want and to work for whom you
respect.”
- J.L. Collins

FINANCIAL TORTOISE | 31
STEP 10
BUY BACK TIME WITH FINANCIAL INDEPENDENCE

Our ultimate goal in life is not to amass as much money

as possible. Rather it is to spend as much time as
possible with our loved ones. Our aging parents. Our
children. Our spouses.

And by achieving financial independence, you can buy

back time in order to spend more time with your loved
ones.

Think about your life. How many hours per day are you
working? How many of those hours are you doing
something that you truly enjoy? Are you getting to
spend enough time with your children? Your spouse?

If the answer is no, then financial independence may be

a goal worth pursuing.

Achieving financial independence allows you to spend

your time on what's important - your loved ones.

Whether it means working less hours, or retiring

altogether and traveling the world with your spouse,
achieving financial independence gives you the freedom
to spend your time as you see fit.

FINANCIAL TORTOISE | 32
There are variety of ways to achieve financial
independence, but here are some commons ways:

Achieve The 4% Withdrawal Rate - This is the most

popular and widely used strategy.

By saving 25 times your annual expenses, let's say

$1,000,000, you will be able to withdraw $40k per year
indefinitely based on a withdrawal rate of four percent.

Become A Landlord - If you have the time, expertise

and money necessary to invest in real estate, investing
in a rental property is another way to generate passive
income on your investments.

Start Your Own Business - Starting a business is

another way to achieve financial independence.

This option might be the most difficult, but it's certainly

an option worth exploring if you have a strong desire to
become an entrepreneur.

There's no one-size-fits-all answer, but know that

financial independence is within reach if you're willing
to put in the work.

FINANCIAL TORTOISE | 33
RECAP: 10-STEPS TO SECURING YOUR
FAMILY'S FINANCIAL FUTURE
1) SAVE 3-6 MONTHS OF EMERGENCY FUND
2) PAY DOWN ALL NON-MORTGAGE DEBT
3) PROTECT YOUR FAMILY WITH APPROPRIATE INSURANCE
4) MAX OUT YOUR RETIREMENT ACCOUNTS
5) INVEST IN LOW COST INDEX FUNDS
6) SAVE FOR YOUR CHILDREN’S COLLEGE FUND
7) PREPARE YOUR ESTATE PLAN
8) HAVE THE MONEY TALK WITH YOUR AGING PARENTS
9) ENSURE YOUR PARENTS HAVE APPROPRIATE LEGAL PAPERWORK
10) BUY BACK TIME WITH FINANCIAL INDEPENDENCE

FINANCIAL TORTOISE | 34
SLOW & STEADY.
WINS THE RACE.

10-STEP GUIDE TO SECURING

YOUR FINANCIAL FUTURE

BY TAE KIM

FINANCIAL TORTOISE