Am I going to be OK?
Good morning!
Though these exact words aren't always spoken, it's my belief (and experience) that almost all people I have the opportunity to speak with ultimately want to know,
Am I going to be OK?
You'll often mention things like "peace of mind" or "feeling safe and secure" or "making sure we have enough."
I've even had 3 separate women say to me something along the lines of that they don't want to wind up alone, having to eat cat food. They were kidding, sort of.
But I think all these ideas (and many more) can be boiled down to the desire to know if you're going to be OK.
And if we can agree that this is one of - if not THE - universal questions about money and about life, let's dig a little deeper...
First off, you'll need to define the word "OK."
OK for you will almost certainly be different than OK for me or OK for your friends, family, and coworkers.
Also, take note of the works "going to be"...
While I applaud your orientation on the future, be careful not to be so "tomorrow focused" that you miss out on enjoying your life today.
And every day along your life's journey.
I'm sure you've heard of stories about people planning to really live it up once they retire or once they achieve some other milestone, financial or otherwise, in their lives. But then tragedy strikes, and they're no longer around to enjoy this wonderful future that may have been decades in the making.
Or their spouse dies or is disabled.
Your ideal future can change suddenly and drastically.
Tomorrow isn't promised.
That doesn't mean we shouldn't plan for it, of course. But neither should we put off living our best lives today.
It will take some exploration and discovery, but there's a healthy balance to be struck between being well prepared for an uncertain - and sometimes scary - future AND making the most of your life today.
And every day.
So perhaps instead of "am I going to be OK?" it should be "am I OK today and am I going to be OK tomorrow?"
Is this just semantics?
Maybe.
But I think there's value in turning some our "either / or" thinking into "both / and" thinking.
And at a high level, this is what financial planning is.
Or what it should be...
Defining and determining what a comfortable and confident future looks and feels like to you. The more specific you can be, the better.
It's one thing to say you want to retire at age 65.
It's quite another to say you want to retire at age 65, spend $84,000 per year, take 2 trips per year, gift money to your children annually, and volunteer weekly with the local rescue group.
Specificity is important.
But - and this is an important but - you also need to consider where you are today. And how you can plan for your specific vision of the future while still making the most of your life today and every day going forward.
I've written before about minimizing regrets. And staking all your hopes and dreams on a tomorrow that may never come - or that may turn out very differently than you planned - is a recipe for regret if you ask me.
So let's say you know, in specific terms, where you want to go. And you've also evaluated how to make the most of your life today and each day along the way.
Now what?
Well, this is where the power of ongoing planning bubbles to the surface.
As boxer Mike Tyson so eloquently puts it,
"Everyone has a plan until they get punched in the face."
Or put another way, your plan is nothing more than a snapshot in time. Based on what we know (and anticipate) right now. Today.
But life has a funny way of wrecking - or at least altering - our best-laid plans.
So we need to make new plans. We need to accommodate new information and experience as we get it. And we need to adjust to a changing personal and financial landscape.
We might have to take some detours. We might accomplish some things ahead of schedule. And we'll certainly have to adjust our plans and evaluate some trade-offs along the way too.
This is financial planning.
All in an effort to help you answer the question, "Am I going to be OK?"
Today AND tomorrow.
Links & things
I had the opportunity to contribute to this recent GoBankingRates article, and somewhat contrary to my thoughts above, when it comes to volatile stock markets, it can be beneficial to keep your focus on the long-term:
I recently shared an image on Linkedin that wound up getting almost 17,000 impressions and engagements. Maybe this is my 5 seconds of internet fame. Regardless, it's a great image that I'd encourage you to check out:
Thank you, as always, for reading.
And if you have any questions or an idea for a future newsletter, blog post, or YouTube video, I'd love your input.
Just hit reply - I read (and appreciate) every email you send.
Until next Wednesday,
Russ