Partnering with techies is one of the most satisfying experiences I have as a financial advisor. Where else can I consistently find such creative individuals who push limits, challenge the status quo, and create spectacular visions of where the future lies?
Whether taking up the crusade of their own personal challenges, leading the vision for a key project or providing expertise in a new light, the world of technology changed the game in many respects as to work attire, time in the office and employee benefits. These precedents set the stage for other individuals, allowing more freedom in the workplace, and more freedom in their work.
This also extends to redefining financial freedom. Financial freedom to you may mean taking a risk on a big idea, finally having the time to develop on an opportunity to better the world or providing peace of mind so you can devote yourself 100% to what you love.
How do you get there?
In the traditional world of finance and financial planning, we often see articles referring to retirement savings goals. They give all kinds of advice, from “As long as you take distributions of less than 4% of your portfolio, it should last for x number of years,” to “Consider an encore career during retirement for part-time income.” What does that even mean?
There is no one-size-fits-all approach to life.
Recently, I met with prospective clients who were unhappy with their current advisor and didn’t know if they were on the right path financially. We talked about their goals, values, and dreams. Then we walked through the vesting schedule, company trajectory, severance package and executive agreement to understand the level of riskiness in their personal situation. As the meeting concluded, they expressed gratitude. Our exercise gave them the tools to make an informed decision. In the end, retirement was not a high priority and they changed course financially.
Where do you go to get good advice on obtaining a personal platform of financial freedom? I believe financial freedom is the culmination of living your life true to yourself, focusing on what makes you happiest and creating a plan to fulfill your goals. Let these thoughts guide you.
Start with the Heart
- Take a good look at your monthly finances. Use a data aggregator to get a sense of where your money goes by category and also pull out the major offenders by place (i.e., coffee runs, online retailer, etc.). Do you value the experience more, or the physical items you obtained? Are you spending money on the things that matter most to you? Is spending this money worth not being financial free yet?
- Work to align your financial values in spending with reality.
Create an Encompassing Vision
- Saving is intangible and can feel elusive. Consider why it matters and what is important about saving to you. What are your goals for your personal life, professional life, and family or friends that mean the most to you? What imprint do you wish to leave on the world?
- Identify your goals and the financial assets you need to get there, and consider whether your internal values match up to the goals and actions you plan to take.
Identify Your Financial Philosophy
- Your investment strategy is key to building wealth over time. Will you manage your own investment assets or hire an advisor? Do you know how to manage your own money? Do you have the time to effectively manage the most important asset in your life?
- A lot of thought and emotions go into investing. Review some of the things to think about here.
Take Care of Those Most Important to You
- During your life you will encounter many changes – moving to a new house, across the country, to a new job; starting a company or divesting a company; welcoming a new family member or saying goodbye to a loved one, etc.
- Evaluate your risks. Do you have an estate plan that includes a guardian for your child or a home for your pets? If you were to die or become disabled, would there be enough income and assets to keep the loved ones who depend on you safe? What professionals do you trust to help you identify what you don’t know, or to help you over a hurdle? Build a team of experts around you to support your goals.
Each day I meet new and interesting individuals, and I always love to grab a follow-up coffee with them so I can hear about their goals and dreams. More often than not, the underlying message is that of being free to live a life focused on the things that make them happiest. I hope the above thoughts give you insight about continuing on your path to financial freedom.
You may choose to build this plan yourself, but if you know financial planning is not your forte, consider partnering with a financial advisor you trust. If you don’t have an advisor or would like a second opinion, I would love to walk you through the depth and range of advice I give my clients, and how you might benefit from working with me. If Merriman isn’t the right firm to meet your needs, I’m happy to help you identify alternatives. Because in the end, we deserve to get the most out of each day we live.