Sedona Arizona

Would You Be An Investable Asset?

Consider this: As a publicly traded company, would you be an investable asset? This may sound like an odd question, let me explain.

When evaluating individual stocks, bonds, or alternatives for investment portfolios, I focus on the health of the company’s balance sheet, revenue and profit trends, and cash flow efficiency. Having an investment discipline not only manages risk but also identifies profitable opportunities. It also serves as a way to track our investment thesis and see when adjustments may be needed.

Sound familiar? It’s the same approach we take with financial planning!

In June, clients of Life Moves Wealth received an update on the Burn Rate (Br) from their Elements financial health scorecard. Burn Rate helps us understand spending patterns and changes in your expenses over time. In July, we’ll examine Debt Rate, and in August, we’ll review Liquid Term (liquidity).

These three indicators on the scorecard work together to show the health of your cash flow. A healthy cash flow creates room to increase your Savings Rate, enhance your financial independence, and improve your overall net worth.

If I were evaluating this as an investment, I’d look for a company with a trend of profitability, free cash flow, decreasing debt, controlled operating expenses, and strategic investments for value acceleration.

So… if you were a publicly traded company, would you be an investable asset based on this screening criteria?

We use the Elements financial health monitoring tool to keep you informed about your financial standing. Learn more about our modern approach to financial planning here.



Life Moves Wealth Management is a registered investment advisor offering advisory services in the States of Arizona and Indiana, and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. Information contained on this site should not be considered a solicitation to buy, an offer to sell, or a recommendation of any security in any jurisdiction where such offer, solicitation, or recommendation would be unlawful or unauthorized.

The information on this site is not intended as tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. This information should not be relied upon as the sole factor in an investment making decision. Past performance is no indication of future results. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. It should not be assumed that any recommendations made will be profitable or equal any performance noted on this site.  

HYPERLINK DISCLOSURE – The information being provided is strictly as a courtesy/convenience. When you link to any of the web sites provided here, you are leaving this website and assume total responsibility and risk for use of the web sites you are visiting. We make no representation as to the completeness or accuracy of information provided at these websites. Life Moves Wealth Management is not liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technology, web sites, information and programs made available through this website. Life Moves Wealth Management does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Life Moves Wealth Management’s web site or incorporated herein, and takes no responsibility thereof.

Author: Dale Shafer II, CFP®, APMA®, CDFA®

The National Association of Personal Financial Advisors
The Society of Advice

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