Don’t Let Your Heartstrings Control Your Purse Strings

By
Jeff Motske, CFP®
December 7, 2018
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Giving to charitable causes can be a very emotional thing. You’re supporting something near to your heart, possibly with a deep personal connection. However, if you’re not mindful, it is possible to give at the expense of yourself. Be sure you don’t let your heartstrings control your purse strings.

Forethought and planning should extend over all your financial decisions, including charitable giving. For a variety of reasons, many don’t follow a plan. Some give whatever’s left in their budget, perhaps not as much as they’d like or tempting them to give more than they can afford. Others give at the end of the year for the tax break. Alternatively, perhaps charitable giving isn’t planned for at all, which allows one to be swayed by emotion when the right cause comes along. Suddenly, they can be committing based on what they feel rather than what’s best for their finances.

Once you decide to factor your charitable giving into your annual financial plan, you can start doing your research. Not only do you determine which causes you want to support, but you can also investigate various organizations that service that cause. There are many websites that evaluate charitable organizations to ensure that your financial contributions or going where you want. Additionally, having your charitable giving worked into your financial plan allows you to turn down other charitable requests graciously. Should you be approached, you can mention your annual giving plan and that you will consider them for the following year.

Being mindful about your charitable giving also gives you the opportunity to influence your children or loved ones on how to do the same. Your actions become the example to your values. While you needn’t share all the details, you can openly share how you formulated your plan and why. The more people who become aware of how to consciously create an annual giving plan, the more people are actively working towards their financial independence.

I don’t think it’s possible to take all emotion out of your connection to a charitable cause, and I don’t think you should. However, I will always be an advocate of folks proactively working towards their financial independence. The key to that is approaching your finances with reason and logic, relegating our emotions to the backseat and holding firm to your purse strings.

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By
Jeff Motske, CFP®
March 12, 2019

A generation or so ago, the path to financial freedom was pretty direct for most. You found a job and saved for a home and a rainy day. When it was time to retire, you collected from a pension and enjoyed your remaining twilight years. Over time, things have drifted away from womb-to-tomb employment and gotten a lot more complicated. Today’s Americans have to be much more proactive with their finances. In this day and age, saving isn’t enough. Make sure your money is working as hard as you work for it.

There are a lot of concerns for the future. Buying a home. Sending kids to college. Making sure that your current career will be around to see you to retirement. People are living longer, so their retirement money has to go farther. Many high costs associated with medical care aren’t covered by Medicare, such as many prescriptions and long-term care. Pensions are no longer viable option for most Americans, and Social Security, a program that was never intended to replace income, no longer provides the level of security people need for their future. There’s a lot to prepare for.

Due to these concerns on the path to financial independence, people need to be mindful of their money. Even the most conservative Americans need to do more than contribute to a standard savings account, which can’t keep up with the rate of inflation. Investing your money will grow it exponentially faster than simply saving due to the power of compound interest. Yet, preparing for the future can be very emotional work. Today’s retirement planning relies far more on the decisions made by an individual rather than a company or organization, which can be a lot of pressure. Fears of not having enough money, a very common concern, can cloud decisions and can prompt people to react rather than plan. This is why an objective third party is necessary. Financial advisors can see past the emotions and help you plan your path to your financial freedom.

In this day and age, there are real and unique concerns that can derail you from the path to your financial independence. Trilogy Financial is here to help you establish your goals and invest your money to help get you where you want to go. It is our mission to ensure that every American, from Main Street to Wall Street, has access to great planning and the tools to establish their financial independence.

By
David McDonough
February 22, 2021

Preparation for retirement is extremely important, and it extends well beyond finances. In addition to knowing how you’re going to fund it, you also need to know what your time will look like when you say you’re done with being a wage earner. With this new lifestyle, you not only need to determine how to fill up the hours in the day, but you also need to determine what your new purpose is. This can be a pretty significant task, which becomes even more complicated when you add another person to the equation. That’s why you need to work on your retirement compatibility with your partner way before you stop working.

Retirement Compatibility is a tricky thing. Statistics show that half of the couples disagree on their retirement age —and a third don’t see eye-to-eye about their expected lifestyle in retirement[i]. This is troubling as there are a lot of logistics you need to determine in this new chapter of your life. Will you be retiring at the same time? Typically, only 1 in 10 couples retire together[ii]. If you and your partner are planning on retiring at different times, you may want to look into how this change affects your health insurance. You may also want to consider re-establishing household roles. Equally important, you will need to find common ground on your retirement budget as it will require commitment from both parties.

Oftentimes, the difficulties in transitioning from a wage-earner to a retiree can go beyond the logistics. Some experience a period of depression as they look for a new purpose in life. As tempting as it may be, that new purpose shouldn’t be your partner. If you don’t plan correctly, you will suffer from what I call too much togetherness. This can be a very real strain on relationships. Instead, look at your life as being divided into “You Time, Me Time, and We Time.” To aid in this transition, you may want to try winding down your career gradually in order to practice retirement. This can prove to be a benefit to both yourself as you experiment with this new stage in your life and your employer as you stay on to train and mentor your replacement.

Start working on your retirement compatibility with your partner with regular financial date nights. Start discussing how you envision that new chapter in your life. What type of lifestyle do you want to live? Will there be a lot of dinners out with friends or home-cooked meals watching your favorite television show? Will you be traveling or developing a new passion? Will you work part-time or volunteer? Communication is key. Share your plans with your partner so that the two of you stay on the same page and prevent incorrect assumptions from being made.

Retirement, a lifestyle of six Saturdays and one Sunday, can be either a wonderful time or a stressful transition, depending on your planning. Make sure you and your partner’s planning extends beyond finances to ensure a smooth and joyous new chapter in your lives.

[i] https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/couples-retirement-fact-sheet.pdf

[ii] https://assets.aarp.org/rgcenter/general/retired_spouses.pdf

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine what is appropriate for you, consult a qualified professional.

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