Life is full of big changes. Some of them are fun and exciting – like getting married, having children or buying our first home. Others are less desirable – a forced early retirement, physical illness or financial distress.
Some of these events we plan for while others show up unannounced and unwelcome. Several months ago, I read a line from Earnest Hemingway’s novel, “The Sun Also Rises,” where Hemingway’s main character Mike Campbell is asked how he became financially bankrupt. Mike’s response is, “Two ways. Gradually then suddenly.” While funny at first, this quote illuminates a deep truth we often choose to ignore.
Consistently making small moves in the wrong direction can – over time – add up to big trouble. And even worse, these consequences can be hard to detect until it’s too late to avoid pain.
We see this in many areas of life: health, mobility, relationships, home maintenance and, let us not forget, government debt.
Most if not all our clients want the freedom to use their resources without worrying about the future. Our job is to help you do that responsibly – which is a real challenge, since we don’t know for sure what your future costs will be or what your life expectancy really is.
This is why we dig so deeply into understanding your financial culture, your core values, and even your health and family history. These pieces of information give us a sense of what your resources may need to be later in life. Without this information it is nearly impossible to responsibly coach you whether to spend less or do more.
This also helps explain why we often ask some of the same questions every year at your annual review and encourage you to communicate with us any changes or surprises you might encounter. Each year we try to uncover what intentional adjustments might need to be made to keep you on track.
We are big believers that good financial planning is collaborative – not prescriptive. You are a big part of your own success. Knowing what your financial “normal” is and finding contentment in that is central to maintaining your future independence.
If you are experiencing changes or having concerns about how the years ahead can be managed responsibly, don’t wait, let us help!