When you hear the term financial advisor or financial planner, what’s the first thing that comes to your mind?
If you’re like many people, you said investments.
While investments certainly are a part of what a good financial planner does, real financial planning is about so much more. It’s about more than money!
Looking back over the conversations with clients during our last review, in just the space of two weeks, clients asked for assistance with the following.
Wanting to leave a company that had been with for a long time. That’s always a hard decision, a very personal decision. The work done over many years has allowed them to leave their current position if they wanted to. Working through their situation, they realized they had the financial resources to make whatever decision would make them happy.
Wanting to change careers and get into entrepreneurship. They became tired of the 9-5 world and answering to someone else. This is a question of do they have the resources necessary to sustain the change in income, and do they have the skills to be the boss. Reviewing the numbers, seeing what adjustments needed to be made, and an introduction to a coach, were the first steps to get them started on the journey to being a business owner.
Wanting to launch a new company, talking about the pros and the cons. What the alternatives were for them. Helping them understand that they needed to lead with their goals and desires first, and together we would help them figure out the financial piece to it.
Wanting to buy more investment real estate, reviewing their goals and objectives and the amount of time they want to invest in this business. Passive income is a myth, but that does not mean that for the right person, owning investment real estate isn’t a good idea. We have talked about wanting to be a landlord before.
Wanting to grow their business and needing to reward employees and reduce taxes. We talked about all the advantages that a business owner has, particularly when it comes to the area of a qualified retirement plan. How could it be beneficial in rewarding their employees as well, helping reduce the taxes for the owner. There are lots of ways to structure the plan for different goals.
Needing help to navigate a liquidity event for their company they are a partner in We worked through helping them understand the tax ramifications, how to minimize the possible impact, and to be able to navigate what could be a once in a lifetime experience for them to realize secure their financial future.
Wanting to align investments with their values. This is an investment question, but not in the way that’s designed only to talk about returns. The clients saw the power in working to align their capital with their values. How can they realize that? We have talked about how to align your capital with your values before.
Wanting to purchase commercial real estate for their business. We talked about the pros and the cons and looped in their accountant to help them understand whether this would be a wise move in their plan that they have set out for their financial future. We have talked in depth about the value of owning your building as a business owner previously.
Needing to prepare to sell their practice, It’s not around the corner, but it is going to be coming in the next few years. How is it that we can both maximize that value now and in the upcoming year, so they can enjoy the journey but be comfortable in retirement? What needs to happen between now and then and what the strategy is after they sell. Are you thinking about selling your business?
Client who had a parent passed away unexpectedly We all know this is coming but that does not make it easier emotionally when it does. We walked them through the process and offered guidance on what decisions to make in this high stress time of their life. Part of that is just being there to listen and to help in any way possible.
Worried because a parent went into the hospital, helping them understand what they need to know as the child in making sure that the decisions are made effectively.
Wanting to relocate closer to family. We talked about the financial impact that that would have to the fact that many moving now, trying to understand what sort of house they would be able to afford, as well as the impact of higher interest rates. It’s important to help them realize that regardless of what lay ahead that they needed to lead with their heart and in that it was my job to help them navigate the finances.
Wanting to get ready to embark on their FIRE (Financial Independence Retirement Early) lifestyle beginning next year, walking through how they can scale back their work schedule as well as their income but still live a comfortable life. This can fell like jumping out of a plane. Once you understand the physics, it’s not quite so terrifying.
Financial planning is so much more than investments, it’s about more than money.
Speaking about more than money, did you know that As of March 23, 2023, I will officially be a published author!
More Than Money is the first of its kind
It’s a collection of inspiring true stories that reveal how real clients applied financial planning to achieve tangible results that changed their lives.
The book is being published by Harriman House — the same group that brought us The Psychology of Money by Morgan Housel which has now sold 2 million copies and a book I quote often!
My favorite part of this book is that 100% of net proceeds are being donated back to non–profit organizations dedicated to improving financial literacy.