We’re often asked, “What does financial planning look like?” or “Help us understand what our next steps are going to be.”
There are a few analogies to which we usually try to compare the experience of financial planning vs. your real lives. I like the comparison of financial planning to taking a long road trip with your family. Maybe that’s not such a good thing, but here goes …
You always want to come away from our planning sessions thinking: “Whatever life throws at me, I’ve got a plan for that.” Just like a road trip, life is much easier when you have a map or a plan. Just like an itinerary for a trip, a financial plan lets you know what you need to do to achieve financial independence and helps take the stress out of decisions.
Should you go off course, no problem! A financial planner helps you get back and stay on track and is a partner in navigating your financial life when things don’t go as planned. Should you get a flat tire (possibly this would equate to a job loss), good planning can ensure that you have a functioning spare and can install it properly for a safe journey to the next service station. If you know where you want to go, getting there is so much easier when you have a road map.
But, before you even hit the road, where do you want to go? A good financial planner will help you discover your life goals with exercises and deep discussion of what makes you happy. They can also help couples create a shared vision of the future to bring alignment to family financial decisions.
For you couples: A skilled planner will help your relationship. How about those times when the map is unclear and you need directions? How do you navigate an uncertain outcome? “Should we turn left or right, or just continue on the straightaway?” There’s less to argue about when you’re both committed to the same future (with personal freedoms included, of course).
With your financial road map in hand, it’s easy to identify when a financial decision will take you off track. And just in case you’re not able to see that, your financial planner will be, and can help you decide whether a detour makes sense for you. Let your financial planner be your GPS to help you reach your destination. If the destination changes, it can be extremely valuable to appreciate what the new destination offers and what it may look like.
What about inclement weather? Sometimes it may be best to pull over and rent a room for the night or seek shelter. A financial plan is especially valuable in times of market volatility. While it’s frightening to see your investment balance go through the ups and downs of a bumpy market or experience steady declines in a recession, a financial planner can take the reins of your portfolio and help keep you from reacting out of fear. It’s what we do. And a good financial planner will position your portfolio to take advantage when the market makes its rebound and recovers.
Think of your financial planner as your better angel—they will keep you from acting on harmful impulses brought on by the fears of a scary market, and help you do what’s in your best interest.
Ready to start planning your journey? Contact us today to learn more.
