Reaching Our Goals and Realizing Our Dreams…”Winging It” or Plan?
“Where did we ever get the idea that we can reach our goals and accomplish our dreams by ‘winging it’ in our financial world?” In what other areas of our lives does winging it actually work? Sure, winging it is fun when the outcome doesn’t really matter… like a vacation day, carefree road trip, or a night out with friends. What about when the outcome does matter?
In my fifteen years of experience as a financial planner, I’ve discovered that the primary cause of anxiety, stress, frustration, and uncertainty in the financial worlds of the people I work with is a lack of planning. It’s not a lack of intelligence, determination, dedication, or passion. It’s the idea that goals can be reached and dreams realized by simply winging it.
I think the reasons for winging it can be summed up in two words: upbringing and complexity. Most of us were not taught financial planning by our parents. Most of our parents either winged it with their financial world or they kept their finances a secret from their children…and we learned from them. We inherited the notion that financial goals can be obtained simply by winging it. No wonder there’s so much frustration and anxiety! The other issue is complexity. Our personal financial worlds in 2015 are far more complex than the financial worlds of Americans in 1915 or 1965.
Today we worry about retirement accounts, social security maximization, college savings, long-term care, a dizzying array of investment options, life insurance and annuities with options we don’t understand, and longer life expectancies. The life expectancy of a man born in 1915 was 51 years and a woman born in 1915 was 53 years. By 1965 the life expectancies had climbed to 70 years and 73 years. A child born in 2015 is forecast to live into their early 80’s. For most of the historic human experience, the challenges that face us such as retirement, long-term care, and college savings were not relevant.
Is there an option to winging it?
Can we really know the answers to questions such as:
- How much money will I eventually need in order to retire?
- How much money can I live on each year in retirement?
- How much do I need to save every year so that I can retire in a lifestyle of my choosing?
- How much life insurance do I really need?
- Do I need long-term care insurance?
- How should my money be invested?
- How do I plan for my kids college education costs?
- Do I need a will, a trust… or both?
- What about a living will and power of attorney?
- How much should I have in an emergency fund?
- What are the best mortgage options for me?
- Is a budget necessary?
If reading down through that list stirs up some anxiety and stress, you’re not alone. Most Americans have little to no plans when it comes to their financial world. The good news is this, winging it is optional. You can reach your goals and achieve your dreams; it just takes planning.
If home for you is in the Loveland area – or anywhere along the Colorado Front Range – and you have concerns about your financial plans, consider scheduling a complimentary consultation meeting with me.
WINGING IT IS NOT A FINANCIAL PLAN.
Let me help you get on the path to financial security.