I want to introduce you to Edward, 48, from Topeka. We met on LinkedIn a few years back and have stayed in touch casually.
We instantly connected because our families have both been blessed by the adoption community. His family has adopted from China, and my family has adopted from South Korea.
Edward referenced my newsletter, in which I discussed my client, John.
“I want to retire at 62. I need $10,000/month in today’s dollars. I want to have a small house in the mountains. I want to eat the best Indian food possible and watch the NHL network.”
Edward has worked with a very serviceable advisor at a reputable firm for 15 years.
But they never asked him about his dreams.
You see, my friend Edward also wants a mountain house.
Financial planning can sometimes become too focused on the numbers, and we lose sight of what those numbers represent.
For example, let’s say that over the next 20 years, the S&P 500 averages 7.8%.
In Scenario A, you averaged 9% but didn’t have a well-thought-out plan. You didn’t invest enough money to build your nest egg large enough to fund your most cherished dreams, goals, and aspirations.
In Scenario B, you average a 6% return, but you have fully funded your plan, and your family checks off the items on your bucket list while you relax at your new mountain house.
Which is a better experience?
If you are a fan of this email, I hope you choose Scenario B.
Dreams are possible on the other side of a financial planning conversation when creating a written, goals-based financial plan.
The financial plan is a living document that must be updated and acted upon.
if you or someone you’re close to could use help aligning their finances and establishing a financial plan, please reach out to us, we’re accepting new clients and eager to help.
Cheers, Nic
P.S. Did you know one thing that shocked Edward?
It was SO easy to break up with his old firm.
We opened new accounts and account transfer forms online through eSignature.
In 3-4 business days, the old investments are transferred electronically.
He sent a quick email to the old firm, letting them know he was moving.
A chapter was closed. A new story begins!
