After many years of doing this, I’ve found that DIY investors are rarely where they should be.
There are really two camps.
The 80%
They followed the rules of thumb. Maxed out the 401k, set it and forget it, and figured that was enough. But while they were busy building a career and a life, a few things were happening:
- Income continued to climb
- Lifestyle adjusted accordingly
- Savings rate fell way behind
And they casually spent the difference. They assumed they were being responsible by maxing out the 401k and contributing consistently to savings. No one ever stepped in to explain that their income was now far outpacing their investing and savings rates, and that their lifestyle was on a different budget.
The Other 20%
They saved incredibly well, or had a great exit, and now the problem looks completely different. The question isn’t whether they can afford to retire. It’s whether they’re actually living.
Are they missing out on real experiences because they feel like they should keep stacking? Taking the safe vacation instead of the great one? Skipping the trip because the timing doesn’t feel right? Waiting for some future version of life to start? Assuming they’ll just do it down the road…
Here’s what I see and it’s painful: People who have done everything right financially but have quietly talked themselves out of enjoying it. And that’s just as much of a planning failure as not saving enough.
If your kids are still young, I’ll say it plainly: Guys, this is it. You are living the good old days right now, in real time. They still want to go down the water slide with you. They still think you’re cool. They still want your attention. That window closes sooner than you think and will happen fast—We live one life and no portfolio balance is worth missing it.
Conclusion
This isn’t just about kids. It’s about your life. The trip you’ve been talking about for three years. The lake house. The sabbatical. The event tickets. The long weekend that turns into a week because you actually can. Time is the one thing a financial plan cannot create more of.
For the 20%, the advice is the opposite of what they expect to hear: Save a little less, spend a little more. Take the extra vacation. Take two. That is not irresponsible. That is the point.
Where do you land?
Very few people sit right in the middle. Finding that sweet spot, and building a plan around it, is exactly what we do.
Let us help you find your sweet spot, invest and save responsibly, and also allowing you to enjoy life right now.
If you’re a high-achieving professional who knows it’s time to get a real plan in place, we’d love to talk. We’re currently taking on new clients and would be glad to hear what you’re working toward.
And if you’re already working with an advisor but have been thinking about making a change, we help people do that all the time. It’s a straightforward transfer process, and we can handle most of it without you needing to be involved at all.
We can’t wait to work with you.
Nic
