Asking for Directions 🚧
Good morning!
I'm a guy, so asking for directions isn't my natural response when feeling a little lost.Â
And with Google Maps or Waze on our phones, we really don't have much of an excuse for feeling lost these days, do we?
But there are directions I'm comfortable asking about, but they don't happen behind the wheel.
They happen in my financial planning process with clients.
I wrote a blog post back in 2015 about "financial guessing."
Then, a few years later in 2019, I suggested that pretty much all of financial planning is about making educated guesses.
Despite this perspective, I believe financial planning is still super important and worth the time and energy on your part.
Today, I'd like to extend this line of thinking and use what I think is a better word...
"Directions"
Many financial advisors assume that you know what your goals are:
When you want to retire
How you want to educate your children or grandchildren
How much retirement will cost
The level of care you want if you experience a long term care need
Where you'll live 5 years from now. Or 15 years from now.
Your desired to help support and care for aging parents
And more
In fact, while I'm constantly working to get better at this, I've been guilty of this assumption myself. Though I like to think that was many years ago...
However, research and my experience tell me that many of you aren't really clear about your goals. Or guesses. Or whatever you want to call them.
In reality, isn't that one of the reasons you might seek the guidance of a financial advisor.
So the way I'd encourage you to frame your financial and lifestyle goals in the future is to think of them as "directions."
What do we know about directions?
Well, they're based on what we know right now.
But they can (and will) change.
There will be detours.
There will be delays.
There will be traffic.
There will be accidents.
Remember when older versions of a car's built-in navigation system would often say something like "recalculating?"
That's because things change, even when you're en route to your destination.
And that's exactly how financial planning (and your life) works.
I also feel like directions feels like a little less of a commitment when compared to a goal.
And guesses, to me, feels a little too vague.
Directions seems to be better fit in this context, if you ask me.
Now, of course, these are only words.
Words are worthless without taking action.
So whether you reach out to me or seek advice elsewhere, I'd encourage you to work on putting a financial or retirement plan in place.
And more importantly, making sure you keep your plan up to date on a regular basis.
To adjust for new information, detours, or other surprises along your journey.
The real value of financial planning is keep you headed in the right direction, isn't it?
Links & Things
For something a little different, listen to my recent conversation with Matt Regan, the President of my parent company Wealthcare Capital Management.
The article What it Means to be Rich is a nice reminder that “Everything that can be counted does not necessarily count; everything that counts cannot necessarily be counted."
Thank you, as always, for reading.
Until next Wednesday,
Russ
P.S. > Could you do me a quick favor? Reply with one topic or idea you'd like me to cover in a future podcast episode, weekly email letter, or blog post... I'd really appreciate your input. Thank you!