Wordle wealth management
Good morning!
Have you heard about Wordle?
It's a free, online word game that you can play daily. And it's become pretty popular since it was created just a few months ago.
If you'd like to play, click here. (go to the question mark in the upper left corner of the screen for instructions)
And if you're interested in the story that led to the creation of Wordle, here you go.
So why do I mention Wordle in the context of my Wealthcare Weekly?
Because I believe there are some important financial planning lessons we can take from this simple word game...
As many of you have heard me say, goals might as well be called guesses.
None of us can see the future.
So whether it's the investment markets, interest rates, or what your retirement will be like, we're all making guesses.
Just like in Wordle.
But here's the thing... once you make a guess, life happens.
You get feedback.
You learn.
You make mistakes.
You have successes.
And then, you guess again.
But this time, your guess is better informed. Because more time has passed. You have more experience under your belt. And your guess (goal) is a little closer today than it was yesterday which means you might have a little more clarity.
The magic of Wordle is that it gives you feedback and helps you make better guesses in each successive round.
It helps you narrow your decisions.
You can reduce your choices based on the prior round (if unsuccessful).
And I think this is a simple but elegant analogy to ongoing financial planning.
You make a guess or set a goal.
Retirement, for instance.
When will you retire?
What will your health be?
How long will you live?
How much will your retirement lifestyle cost?
Will you need long term care insurance?
Will you need to care for an aging parent?
Or help support a child? Or grandchild?
This list of questions is endless?
And ultimately, we just don't know.
Sure, we can guess. We can plan. And we absolutely should.
But still... we don't know.
So we put a plan together. Make some guesses. Adopt some assumptions.
And then, as life happens we take what we've seen and learned and make adjustments.
This is financial planning.
Yes, there are more details and moving parts and topics to explore, but at the end of the day, that's really all there is to it.
Choosing a direction and making course corrections along life's journey.
Much like a simple, online word game like Wordle.
Give Wordle a try and let me know what you think.
And reply with your thoughts on my analogy above 😉
Links & Things
Having been a financial advisor for almost 30 years, I've had the benefit of meeting some great folks along the way. Some have become friends. Some have become mentors. And in my latest podcast conversation, I'm joined by someone that has become both. I invite you to listen in on my conversation with Perry Chesney.
Did you know that your beneficiary designations (think retirement accounts, life insurance policies, etc.) operate independently of whatever instructions you've laid out in your Will and other estate planning documents? Clearly, this makes them important! Learn more in my latest blog post.
I still can't believe that one of my YouTube videos has over 21,000 views (and counting). Check it out here and be sure to subscribe to my channel by clicking here.
Thank you, as always, for reading.
And if you have any questions or an idea for a future newsletter, podcast, or blog post topic, I'd love your input.
Just hit reply - I read (and appreciate) every email you send.
Until next Wednesday,
Russ