Focus on Planning
You may have heard the phrase, “If you don’t know where you’re going – any road will get you there.”
A professional wouldn’t build a house without blueprints. You wouldn’t (likely) take a trip across the country without a map or GPS… or both. So, why is it that the average American spends more time each year (4 hours) planning their family vacation than they do planning their financial future?
Possibly it’s due to a misunderstanding of what financial planning really is and how effective planning can enhance the quality of our lives. Achieving competitive returns on your investment portfolio is an important part of financial success, however planning is much more holistic than simply investing money.
- What do you want out of your financial life?
- How much money do you need to accumulate to achieve your goals?
- What are you willing to do to accomplish these goals?
- How much risk or volatility are you willing to accept? How much risk do you need to take?
- How can you take care of your family if you’re not here?
- How do you transition to living off your nest-egg in retirement?
- How do you evaluate the pros and cons of your pension distribution options?
These are just a few of the questions that can be addressed through the process of financial planning.