What is a Private CFO®?
You are the CEO of your company
If you truly think about it, you are the CEO of a company. That company is your household and all that relates to it financially. In the past twenty years, roles like a financial advisor, stockbroker, insurance agent, or investment consultant were good enough to help you with your financial planning, investment, and insurance needs. Today, with the amount of information that is thrown at you on a daily basis from friends, media, and the internet, you should do what any smart CEO would do with their company: Hire a top notch CFO to help you manage the business of your family finances. oXYGen Financial launched the role of a Private CFO®to allow individuals and businesses to have someone who is as concerned about growing the balance sheet and the income statement of your company as the CEO themselves.
What exactly is a Private CFO®?
A Private CFO®is not someone who is there to sell you a product. It is a role designed to truly map out the short and long-term goals of your family finances, and then create an on line personal financial dashboard so you can see the daily progress of your balance sheet, income statement, and how you are tracking against your goals. oXYGen Financial designed the Private CFO®role with three main functions in mind.
- Controller -In any successful business, there are really two important dashboards to be watching. The first major dashboard is your income statement. All of us generally have a finite amount of income that we earn each year. What separates the successful families (or businesses) from the other ones is how well they manage their expenses. Having the expertise to know how to shop bills, where to get deals and lowering tax liability to maximize your bottom line is an extremely difficult skill to learn. As you grow the bottom line of your income statement, quality planning will allow you transfer that success to growing your balance sheet. Increasing your income statement may be as easy as bill consolidation or it may be as complex as sophisticated tax management strategies. The second major dashboard is your balance sheet, which is really a measurement of your net worth. Your net worth is what will ultimately provide you with financial security. As you free up assets or cash flow; critical balance sheet decisions around whether to pay off debt, where to invest, or making new purchases will be extremely important on the best way to grow your net worth.
- Treasurer - The treasurer role serves three main functions in assessing and managing risk for your company. The first function is to assess your overall insurance and risk management program. Determining the right amount of group and individual coverage with your health, life, disability, long term care, and property and casualty needs should be reviewed on a yearly basis. What are the best decisions to make during open enrollment time at work? The second function is to determine the smartest overall debt structure. This includes reviewing consumer, auto, student, mortgage, and business debt. What strategies should you deploy now to make the most effective use of your debt structure? The last function is around reviewing the appropriate risk of your investment strategy. Time and time again, many CEO’s of their family finances do not assess their personal investment risk correctly nor do they create the right balance of real estate, stocks, bonds, and insurance when they make portfolio decisions. This can cause potential catastrophe as we have seen in the real estate and stock market over the past several years.
- Strategist – No quality company runs well without clearly defined short and long term objectives that are measured against benchmarks. In your company (your household or business), there are six key areas that should define how strong your progress is against your goals. Being able to forecast what economic, tax, or investment changes that are on the horizon is important to mitigate future potential pitfalls. In today’s world, you wouldn’t take a trip across the country without a GPS system. oXYGen Financial’s unique strategy process and on line personal financial dashboard act as a personal GPS system to keep you on track for your financial goals. The most important part is planning for the certainty of uncertainty.
The crux of our Private CFO(r) process is to help you create your own personal financial dashboard that updates every single day. The internet was supposed to make things easier by giving you on line access to all of your accounts. However, between your bank, investment, 401(k), mortgage, credit card, and frequent flier programs, you end up with 20 different user names and passwords with no way to easily see 'one picture of you' as the CEO of your family finances (half the time you need to remember what was the first car you drove or your favorite movie). Through the oXYGen Financial Private CFO(r) process, we help you get all of this information into one place every single day, and then fully integrate it into your overall financial plan so you can work hard on reaching your financial goals and milestones. In addition, each client gets their own online vault to store important documents that you can access while at home, work, or on vacation at a far away destination.
Let's face it, hitting your financial dreams and goals is likely going to be harder for you than it was for your parents. You want to be educated and informed, but you need more than a salesperson from a big company selling you their products to help you reach your financial goals. oXYGen Financial is a company that knows life is more than just an income statement or balance sheet. It is about creating a balance between saving for tomorrow while you still enjoy today. We can help you achieve financial independence, purpose, and freedom.