While teaching has its place in raising our children, the example we provide in how we actually behave in our own lives is much more important. The instruction”do as I say, not as I do” rarely works. It is only when what we say or do is closely aligned that we have a good chance of creating behaviors in our children that are likely to last.
You might be wondering whether or not you need a financial planner. In short, when you have questions that require more than a simple yes or no answer, you most likely could benefit from the services a financial planner provides.
Let me be more specific. A financial planner can help when you have questions about your finances that involve:
- Legacy/Succession Planning; wills, trusts, directives, etc.
- Insurance Planning; life, long-term care, etc.
- Investment Planning; 401(k), retirement needs analysis, etc.
The role of a financial planner is much like that of a quarterback. Given the breadth of advice a financial planner provides, and the unique circumstances of each individual, an exact prescription for seeking professional advice is challenging to provide. However, certain financial planning activities such as those listed above are excellent times to engage a professional.
At Sampson Investment Management, we believe the road to financial independence begins with a holistic understanding of your finances. Meaning, it is essential for us to review the important components of your estate, income taxes, and household finances to provide the very best advice and most effective planning recommendations.
We also believe in a team approach, where skilled and uniquely trained professionals consult and contribute regularly on your behalf. These professional relationships are built with individuals who share a mutual respect for one another’s expertise and a commitment to excellent client service.
In our experience, people tend to spend as much in the first decade of retirement as they did in their pre-retirement years. This is primarily due to increased travel and active lifestyles involving high level spending.
Therefore, the process of figuring out how much is needed in retirement begins with an accurate budget that specifically delineates spending habits in the years just preceding retirement.
Almost everyone underestimates how much money they actually spend. When expenses are either underestimated or ignored, our ability to make financial projections is compromised.
In my mind, nothing is a better example of this than what many of us spend on our daily coffee habit. My wife and I are regular customers of Starbucks and I was shocked to find out how much we actually spend on such a frivolous expense.
Preservation of wealth involves risk-management strategies that address the level of risk you take in the accumulation phase of life. It also involves the protection of assets once you achieve your financial goals (achieve critical mass). This may or may not involve a reduction in risk during retirement. Management of risk at the portfolio level, both before and after retirement, is certainly important.