Posted by kdadmin on June 17th, 2015.
Ever wonder what the point of financial planning is? Why spend all that time, effort, soul searching, and analysis to figure out your financial future? Have a look at these graphs. Which financial life would you prefer?
Look, you’ve got only one life. You can either make it chicken sh** or chicken salad.
Sure, you can bury your head in the sand. You can put off the tough decisions, or, in fact, ANY decisions, until a later day. You can ignore the warning bells, labels, letters, etc. You can turn a blind eye to what math tells you will happen. OR, you can take your financial future seriously, assemble the data, review the results, and make the decisions about what YOU want your financial life to look like.
Consider the above graphs. The plan on the left assumed a typical full time (50 hour/wk) work life for another five years and then abrupt retirement. The plan on the right assumed six months of work and six months of travel for another ten years, and then retirement. Everything else is identical. Now tell me, how would you like to work half the year, and travel the world half the year? How about knowing that you could continue to do a job you loved, expand the travel time that you loved, AND have the money to enjoy it both now AND in retirement?
This, my friends, is the value of multivariable calculus. This, is the value of experience. This is the value of small business consulting. This is the value of financial planning. Sure, it sounds boring. Sure, it can be arduous. But guess how I’m able to help my clients realize their financial dreams WHILE traveling and doing the things that I love? Financial planning. I’m the proof in the pudding. And so are all those others who are happily living the life they love.
The Benjamin Franklin takeaway: If you fail to plan, you plan to fail. But the planning is more complicated than you may think. It’s one thing to come up with a budget for one year, it’s quite another to figure out your likelihood of success over 30 years while adjusting for variable market returns, inflation, changes in interest rates, the law, 401k rules, income, social security, disability, estate tax laws, and premature death.
If you’re my client, and we’ve talked about this, you’re likely already on the road to financial freedom. Chances are, I’m harassing you right now for more detailed information about your situation in order to keep your plan on track.
If not, consider reaching out and asking for help. While you’re at it, follow this link to get a taste of How to Live the Life You Love, while you marvel at the aerial and landscape footage in this short video.