Confidently Confronting Uncertainty
The world feels a little upside down. There is so much uncertainty in the world - the pandemic, the economy, workplace issues and geopolitical issues just to name a few.
How much longer until we feel better? When will we have a market correction? When will we feel like the economy is fully recovered? Will anything ever be the same again? These are all questions that our clients are asking.
Powerless
Many may be feeling powerless right now. Consider the following findings from a recent poll:
51% of respondents said they are more concerned about the economy than they were last year
33% are now more concerned about their ability to retire
43% are more worried about their financial future
For some, this feeling of powerlessness can create a serious obstacle when it comes to making financial progress. How can investors overcome their fear and worry and take actions that will propel them forward to achieve their financial goals?
Having a plan helps!
We believe that having a working financial plan can create a tremendous sense of peace of mind and empowerment! In fact, in our experience, here are a few of the benefits that can be derived through the financial planning process:
1) A financial plan provides a realistic assessment of where you stand. Are you on track? Do you need to save more? Are you saving to the most appropriate type of accounts? Is your portfolio appropriate given your return requirements and risk tolerance?
2) A financial plan addresses the possibility of financial hardships. Do you have adequate emergency savings? What happens if inflation is high and/or investment returns are low during your retirement period? Can you afford to self-insure against long term care costs or should you consider long term care insurance?
3) A financial plan helps to identify opportunities. Is a Roth conversion appropriate? Should you pay more toward your mortgage or consider refinancing? When should you start taking Social Security? Are there opportunities to reduce your current or future tax burden?
Confidence, Peace of Mind & Empowerment
We have found that going through the financial planning process provides an element of certainty and an idea of what can reasonably be expected in the future. Identifying best case and worst case scenarios and developing a game plan of how to mitigate risks, generally provides confidence, peace of mind and a sense of empowerment to those who go through this process.
If you have any questions, or would like to discuss alternatives that can help you confidently confront an uncertain future. Please feel free to contact our office.