People are fried. After two years of COVID, the Ukraine War, unaffordable homes, and a stock market correction, people are sick and tired of being sick and tired. I’m a financial planner, not a therapist, but sometimes I feel more like Frasier Crane than Peter Lynch.
Talking to a financial planner is to bear your financial and emotional soul. It’s not easy for people to reveal their financial secrets or status. Since I started my firm in 2015, we have completed more than 140 financial plans reflecting hundreds of millions of dollars. The two questions people often ask are: When can I retire? Will I run out of money?
Because of COVID, we generated several standalone plans to help people who want to change jobs, move to the country, or travel the world. These people are tired of their daily grind and want to pursue their hobby or passion, and they want to close out the second half of their career with a purpose.
A financial plan can help you decide if you’re financially ready to leave your 9 to 5 job to pursue your dreams. Are you ready to start a new business? Do you want to work for a non-profit? Can you expand your hobby to generate income? Your plan can answer these questions and many more.
I have often said there are two sides to financial planning. On one side, it’s all about the numbers. Will your assets support your lifestyle when your retire or change careers? In this case, the numbers dictate your decision. It’s a binary answer – yes or no. On the other side is the emotional piece. Are you ready to leave your day job to pursue your dream? Do you have the self-control to leave a steady paycheck behind? Can you handle economic uncertainty? A well-constructed financial plan will mend these two sides together to give you the confidence to forge ahead.
If you’re unsure where to start, you can visit the Certified Financial Planners website to learn more about the profession and services. You can also search for a planner in your area. Here is a link to their website. https://www.cfp.net/
When I started my career three decades ago, I developed a rudimentary financial plan for a client. A few days after we finished it, she called to ask if she could afford a new car, and I told her she could buy two! The plan gave us confidence that her car purchase would not derail her financial future. And thirty years later, her account is still going strong.
If you want to try something new, give it a go. What do you have to lose? If you wish to fortify your odds of success, start with your financial plan. After all, you don’t want to lie on your death bed wondering what if.
It’s better to look ahead and prepare, than to look back and regret. ~ Jackie Joyner-Kersee
April 23, 2022
Bill Parrott, CFP®, is the President and CEO of Parrott Wealth Management, located in Austin, Texas. Parrott Wealth Management is a fee-only, fiduciary, registered investment advisor firm. Our goal is to remove complexity, confusion, and worry from the investment and financial planning process so our clients can pursue a life of purpose. Our firm does not have an asset or fee minimum, and we work with anybody who needs financial help regardless of age, income, or asset level. PWM’s custodian is TD Ameritrade, and our annual fee starts at .5% of your assets and drops depending on the level of your assets.
Note: Investments are not guaranteed and do involve risk. Your returns may differ from those posted in this blog. PWM is not a tax advisor, nor do we give tax advice. Please consult your tax advisor for items that are specific to your situation. Options involve risk and aren’t suitable for every investor.