By Lorie Jones, Fearless Financial Advisors
I have a friend who loves spreadsheets.
I have a friend who loves spreadsheets. We geek out together over the beautiful organization and numbers. She has a beautiful spreadsheet (yes they can be beautiful, I promise) that tracks every cent that comes in or out of her household and exactly how and where it is spent or saved. It is a true work of art.
She asked me a question that really surprised me, “When can I retire and know that I will be okay?” She was looking at one of the most well organized list of accounts and spending that I had ever seen, and she was still worried about being unprepared.
She isn’t alone.
I hear from clients all the time who are worried about their finances. The story they tell themselves is:
• I’m too far behind • I should be doing better • Will saving now even matter?
These are the stories they are telling themselves late at night, when they have kids’ college tuition looming in the distance or they just bought a bigger house for their family. I know some of the most savvy and well-educated people you will ever meet, and yet they are still lying awake at night worrying if they have enough to make it through retirement.
This usually looks like:
• If I don’t ever log into my 401(k) I won’t see how far behind I am • I have a spreadsheet with all of my savings, but what number tells me when I can retire? • I listen to my friends talk, and it sounds like they have it all figured out… I must not understand what I’m doing.
Typically when we finally sit down and look at what they have, they are actually doing much better than they feared. Maybe we can make a few adjustments like saving in Roth rather than pre-tax, or building up an emergency fund to bridge the gap between early retirement and when they can pull from their accounts. We find some tax-savings ideas in the way they are saving or investing, and we come up with ways to be a bit more efficient.
Here is the thing, they already have the basic building blocks in place, they just don’t know it.
That consistent 401(k) contribution they have been making has added up. They have home equity that they have been building through the years. They have all the pieces… they just don’t have the confidence.
When they come to me
When they come to me, we organize their financial picture into one complete plan that gives them a roadmap for their future. We bring together accounts that are spread all over the place into a more efficient and comprehensive picture of their overall plan. And then we talk.
We talk about how to take what they are already doing, and continue it or make it better. I answer questions, because these are smart, savvy, on-top-of-things women and men, who don’t want to spend all day delving into the latest IRS ruling on inherited IRAs. They want a partner who thinks that deep dives into retirement withdrawal percentages is the new Disneyland… and who can explain it in a way that actually makes sense.
This means they make better decisions, stop avoiding and actively engage in their financial future.
I have watched them walk out of my office feeling a little lighter, a little less worried, and a whole lot more hopeful – because they have a plan and they know if they follow it they should be okay.
It is a powerful shift.
Instead of avoiding, delaying, or staying stuck in the same old loop… they are planning, exploring and taking ownership of their future.
So what if your problem isn’t your progress, what if it is your perspective?
Take that first fearless step
You actually have more than you thought – you just need to start making it work for you.
• Look at your numbers
• Get some clarity
• Let the data tell the truth
You actually have more than you thought – you just need to start making it work for you.
