As an advisor for almost 20 years, I’ve heard a lot of excuses and justifications for why someone is behind on their savings – whether that be their retirement account or just plain old cash reserves. But when I dig deeper and get to the core reason for why someone can’t, won’t, or hasn’t taken the financially responsible ‘high-road’ – I’ve often questioned whether or not they have actually chosen the wrong path.
We all know that life throws us curveballs that sometimes cannot be avoided:
- Long-term sicknesses
- Unforeseen accidents
- Job eliminations
- Pandemics, wildfires, and floods
Of course, these events typically happen when least expected or anticipated.
When they do occur, we are instantly forced to react and implement an action plan that may (or may not) have been thoroughly thought out. But the good news is, that part can be made much easier with contingency planning. And that is precisely what planners do.
Since we know that health conditions and uncontrollable events can significantly shorten the period of time you otherwise would be able to enjoy life (think vacation on a French Polynesian beach with a coconut drink in hand), the questions become:
- Should you forgo extra savings that you may never get to spend or enjoy?
– or –
- Should you cling tightly to a nest-egg of savings to cover health, accident, or unplanned costs ‘if’ they occur at a random moment?
Well, there may be an answer that satisfies both.
Our planning process at Arktos Wealth Management takes a client’s assets and liabilities into consideration, creates a plan that addresses them all, and includes contingencies for life’s ‘what ifs.’
Clients who engage us to help them plan and prepare for unforeseen life events feel more optimistic about taking that dream vacation – and enjoying it without suffering remorse. And those same clients also have confidence that a customized financial road map is in place should unpredicted or unfortunate news put a damper on their goals. In short, having the foresight to plan for both creates a situation where one doesn’t have to choose between frugalness and foolishness.
Balance IS possible.
If you or someone you know is approaching a life changing event (birth of a child, job change, retirement, death of a family member, etc.), there are opportunities to give you more flexibility with as many options as practical. In other words, while flying first-class to Europe may be slightly out of reach, flying coach can get you there equally as well. Call us to discuss how a financial plan can improve your ability to finally find balance in life’s decisions.