Throughout my career as a financial planner, one of the questions that I receive consistently is some version of, “Am I doing okay?” Or, “Are my finances in a good spot?” Or even, “How do I compare to other clients you have that are my age?”
First, let me say that I think these are all completely normal, natural questions that clients are asking. One thing I have observed over the years is that, it generally doesn’t matter how much someone has saved, or what their current income level is- most of the time, people are still a little unsure, maybe a little apprehensive about whether they are on the “right track” with their savings and investments.
And I say “right track” very loosely here because how does one define that statement? What might be the right track for one person is likely not going to be the same for the next individual or family. I am sure it is no surprise that a common goal clients tell me is that they want to retire at some point. Even that goal is not a cookie-cutter, one-size fits all goal, as defining what retirement means and looks like is often very different across individuals and families.
So how do we begin to address the question, “Am I okay financially”? I believe it begins with a conversation, not the numbers, to help define what does okay mean to each individual? Does it mean being able to retire at a certain age? Being debt free by a certain age? Pay for some or all of your kids’ education? Having the resources to help care for aging parents? Buying your first house, or moving to your dream house? Being able to afford taking a trip of a lifetime? Once we can have a conversation and start to determine what is important to you, then we can start looking at the resources you have available in order to help you towards your goals.
This is where building a financial plan becomes an important step in the journey to answering the question. Once we have determined what your ideal journey looks like, we can start to build the plan with concrete, actionable steps to help you towards your desired future state.
I think a common misconception is that many hear the term “financial planning” and it feels restrictive, like someone is telling you that you can’t do something, or spend money on that anniversary trip. In my opinion, financial planning can be a freeing and confidence building experience. By having the conversation around your goals and desires, and then determining the steps to take, all that is left is implementing the steps and monitoring the plan for lives inevitable changes. It can actually free you up to realize that if you set aside the funds to reach a particular goal, and you have excess leftover, then it can remove the potential guilt from spending the excess to enjoy life along the way.
Choosing to work with the team at Impel means opting into having a conversation about your financial goals and dreams. It is my passion to hear those goals and dreams from my clients, and see them like a puzzle that they just need some help in figuring out how to get the pieces in the right spot. If you or a loved one needs a little assistance in helping to address and answer the question, “Am I okay financially”, please feel free to reach out to our office, and I would love the opportunity to have a conversation with you, as we all keep Moving Life Forward.
© 2024 Nathan Ollish
Senior Financial Advisor
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