fbpx

Getting Your Financial Plan Out Of The Showroom

Getting Your Financial Plan Out Of The Showroom

Originally aired 9/29/2021

Watch

Showrooms have a lot of pizzaz, but that’s not really where your car is meant to be. Similarly, your financial plan doesn’t belong on a shelf collecting dust! On this episode of the Get Ready For The Future Show, we’re talking all about when the wheels of your plan meet the road! 🛣 

You’ll learn:

⛑ Safety measures your plan needs for your financial journey
⚠️ What to do when your financial check engine light comes on
❗️ One important (finite) resource you need to work in your favor
 
Buckle up! Straight talk is headed your way!
 

Downloadable Content:

What’s the Plan? A Manifesto for Your Life, Your Worth, and What Happens Next

Listen

SHOW NOTES

Custom Seats

  • Just like the showroom isn’t where a car is designed to be (at least for long), your financial plan isn’t designed to sit on a shelf… or at least it shouldn’t be!
    • Any car can look sharp on the showroom floor. But the value of that car isn’t just how it looks, but how it feels to be in it; how it hugs the curves and responds to the elements; how it holds up over years, not weeks.
    • On today’s show, we’re talking all about when the wheels of your plan meet the road!
  • Though there is a significant increase in online shopping for vehicles, 81% of buyers prefer in-person purchases (SOURCE: ThinkNow).
    • This year in the US, 3.5 million adult investors will use a robo-advisor to handle their portfolio.
      • That’s up by 23.2% over 2020, which saw record growth of 37.4%.
    • While online options for both car buying and investing can give you accessibility, both cause you to miss out on important details that you would otherwise get.
    • If your car broke down and someone who didn’t know the make or model of your car or the circumstances around it breaking down began giving you advice that was “guaranteed” to make it work again, would you listen?
    • Your financial advice shouldn’t just assume you’re average.
      • You deserve a personalized financial plan.
        • That’s not built by plugging a few numbers into an online system and aggregating a few accounts.
      • Every person that walks through our door has a different story, different financial circumstances, different goals.. Quite frankly, it would be dumb for us to give them all the same advice.
    • So, what does a personalized plan look like?
      • Financial planning is about more than your assets, investments, and net worth.
        • It’s about what you want to do with your money and why.
        • It’s about identifying your concerns, expectations, and goals.
      • Find out your probability of a successful retirement for free!
        • Visit 15minuteretirement.com or text CHECKUP to 501.381.5228

Safety Measures

  • Sitting in the showroom, you don’t know whether a car has the appropriate safety measures to keep you safe on the road.
    • A “financial plan” that’s sitting on a shelf waiting to be dusted off and handed to you likely won’t have the appropriate safety measures for you and your family.
  • Your Family
    • This conversation may not be fun, but it’s one of the most important ones you can have: What happens to your family if you don’t come home?
    • Can they function without your income? For a lot of families, the answer to this is no. That’s why life insurance is so important.
  • Your Health
    • Not being insured can be the single biggest devastator of a financial plan.
      • A healthy 65-year-old couple retiring in 2019 can expect to spend more than $387,000 for retirement health care costs, not including long-term care (HealthView Services Financial).
    • On top of this…
      • 1 in 3 working Americans do not have adequate disability coverage (Council for Disability Awareness).
      • Over half of people turning age 65 will need some type of long-term care services in their lifetimes (Morningstar).
    • As much as we hope you never need it, hope isn’t a plan. Worry isn’t a plan. Denial is not a plan. None of these things can protect you or your family.
    • This type of coverage is critical.

Check Engine

  • A car is practically useless if it doesn’t hold up on the road. We’d argue that your financial plan is the same.
  • Traditionally, financial advisors have been focused only on investment management.
    • When a client reaches retirement, they can be largely on their own figuring out how to take their managed investments and turn it into an income stream.
    • How do you decide what investments to sell, how much, and when?
  • If the plans for your future fall apart at the hint of market volatility, you need a better plan.
    • Your retirement savings should be allocated to an investment strategy built to generate a CONSISTENT income.
      • That can be difficult to do if you plan to take a percentage of your overall portfolio because what do you do if your account value goes down?
        • Do you take the same percentage, which is now a smaller income? Or do you take the same income, which is now a larger percentage of the portfolio?
      • Instead, segmenting your investments into buckets, and designating the buckets as the income you’ll spend now and the income you’ll spend later, can be the basis for an investment strategy that is built to provide a consistent income over time.
        • The buckets you spend in the early years of retirement are invested conservatively.
        • The buckets you plan to spend later are invested more aggressively.
        • This gives you the opportunity to put time to work for you, not against you. If your overall account values go down, you’re not withdrawing from the bucket that is likely to have been most dramatically impacted. Instead, that bucket is for the long term. And long term is how you need to think of retirement.
      • Find out your probability of a successful retirement for free!
        • Visit 15minuteretirement.com or text CHECKUP to 501.381.5228

For the Long Haul

  • It’s not uncommon to feel a tremendous weight lift from your shoulders when you put a plan in place, but the experience doesn’t end there.
    • Plans have a kind of time-release effect, like some medications do, meaning that you feel the effects when you give them time to work.
  • Time is a finite resource – you can’t get it back.
    • That means the best way to give your plan time to work is to get started early.
    • We know that can be a difficult thing. One of the biggest disservices our industry has done is to take financial planning—a powerful tool for cultivating individual wealth and security—and make it inaccessible to the people who need it most.
      • We see financial service as a public service, and anyone who wants the support should be able to get it. That means we have no minimum requirements and no high bar to entry.
      • In fact, we’ve got a program for whatever stage of life you’re in. Our advisors are educators first, meaning they’re more than happy to help you work toward the next step in your financial journey, even if it’s the first.
      • Visit getreadyforthefuture.com to find which program fits you best!

FINAL THOUGHTS

  • A car doesn’t ultimately belong in a showroom, and your financial plan doesn’t belong on a shelf.
    • Will your plan hold up on the road?
  • Hope isn’t a plan.
    • It’s time that you take the wheel on your own financial independence.
  • Find out your probability of a successful retirement for free!
    • Visit 15minuteretirement.com or text CHECKUP to 501.381.5228

One of the easiest tools you can put to use right now is our 15 Minute Retirement Checkup.

Take action and get yours for free at 15minuteretirement.com or by texting CHECKUP to 501.381.5228