For the past 12 years or so, my husband and I would say each year “we need to plan for retirement.” This statement was always made with good intentions. No, scratch that, the statement was made with great intentions, but you know what they say about intentions. “The road to hell was paved with intentions,” usually good ones I might add.
Bi-annualy we would, and still do, a review of the corporation. The corporation is our household, and we our the CEO and COO ensuring everything is running smoothly and as anticipated. During these reviews we assess our monthly budget, right down to gym fees and “trick off money,” a term kids use for “discretionary funds,” although to be honest, I’m not sure kids know the term.
Nonetheless, at the end of these review slash strategy sessions, we look at each other and say “we really need to do something with the money that’s just sitting in the bank.” Neither of us grew up in homes where financial planning was top of mind, we both come from humble beginnings.
Study What You Don’t Know, Or Enlist the Help of Someone Who Does
My husband and I grew up in families of public school educators and factory plant workers. So, with the exception of the one financial rule my mom shared with me, which was “always pay yourself first, no matter how little” I didn’t learn an awful lot about financial planning and retirement horizons, and based on conversations my husband and I had well before we were married neither did he.
What we both knew about our financial future back then is we didn’t want to depend on social security, as it may not be around and although we were maxing out our 401Ks and IRA accounts, the reality that we needed to diversify our money and make it work harder for us was still a real concern, especially since our incomes were increasing as our careers grew.
Fast forward to present day, we had our semi-annual review and took steps to interview financial planners and advisers. We met, virtually due to COVID 19, with a couple of advisors based on recommendations we received from a platform called SmartAssett.com.
After vetting the companies, we made our decision. Part of our decision was based on the knowledge, expertise and licensure our advisor has, as well as the resources available to our advisor to support us in our retirement goals. The other part of our decision was based on financial modeling with a proposed initial investment, which showed us what we could have by the time we retired.
Money Over Mind
Growing up without knowledge of wealth principles makes it difficult to part with money, much less large sums of it for future purposes and that you could potentially lose to the market. However, this is a path that those who live comfortably know, and they strap in for the long haul because they recognize the upside is worth it.
Stop delaying and take control of your financial future. Go ahead and meet with a couple of planners and advisors they won’t bite, especially if you set your expectations up front. A financial planner and advisor each bring their own unique benefits. So, you will need to decide what makes the most sense for your needs. However, here’s what I know for sure, the longer you wait to put your money to work, is time lost to not growing your money.
Cheers!