Good morning. I want to share a quick story of two couples this AM: The Sherwood’s (Hannah and Michael), and the Wetzel’s (Rebecca and David).
Both couples are smart, successful, and share the same goal—financial freedom. They’ve spent years working hard, raising their families, and planning for the next chapter of their lives. But their journeys to reach those goals took very different paths.
Let’s start with the Sherwood’s, A Plan Without Enough Fuel:
Hannah and Michael did a lot of things right. They invested in low-cost, diversified portfolios—the kind designed to weather the ups and downs of the market. And it worked! Since inception, their returns have been terrific.
But here’s where they ran into trouble: They didn’t start with a plan that outlined how much they actually needed to invest. Yes, they contributed consistently, but there was no clear roadmap.
Imagine planning a road trip without considering fuel? Depending on where you’re going, how far away it is, and how long you’ll be there… You might get close, you might get there, you might have enough to last the whole trip, but you also might just straight run out of gas.
For Hannah and Michael, their portfolio was like a high-performing car—reliable, efficient, and built to last. But without putting enough gas in the tank (investing enough consistently), they simply wouldn’t reach their destination on time, or have enough to endure the full trip (retirement).
Today: The Sherwood’s are playing catch-up, scraping together extra dollars every month to fuel to their financial plan hoping to make up for lost time.
The Wetzel’s, An Engine That Couldn’t Keep Up
On the other hand, Rebecca and David implemented a different approach. They saved diligently. Their savings rate was fantastic, and they invested regularly.
Here’s where things went wrong: They didn’t have a strategy for how to invest.
Instead of choosing a well-thought-out, long-term investment plan, they dabbled in and out of the latest trends: One month it was tech stocks, the next, crypto-currencies, then it was those “can’t-miss” opportunities their neighbor mentioned at the barbecue.
Their investment vehicle looked exciting on the outside, but under the hood, it was chaos. Continuing with the analogy, without a strong engine (a low-cost, diversified portfolio) their car (portfolio) sputtered. Over time, the poor returns and wasted time began to outweigh their incredible savings discipline.
Their situation was analogous to a road trip with many planned stops and refills, but they continued to use subpar parts and bad gasoline. The car wouldn’t get them through journey.
The Road Ahead
The difference between the Sherwood’s and Wetzel’s isn’t their work ethic or their desire for financial freedom, rather it’s that they both lacked a financial plan designed with intention.
The good news? Both situations are fixable. The Sherwood’s and Wetzel’s are still young enough to course correct with the right plan.
What About You?
Whether you’re like Hannah and Michael, Rebecca and David, or somewhere in between, the most important thing you can do is to make sure your financial vehicle is equipped with both enough of the right fuel and a reliable enough engine to get you to your destination.
This is why we build comprehensive plans—they serve as a roadmap that points you in the right direction and ensures you have the tools to get there.
If you or someone you know could use help building that roadmap, let’s connect. I’d love to help you enjoy the ride and reach your destination on time.
Cheers,
Nic
