Long-Term Vision Helps You Cope Through Short-Term Changes

By
August 26, 2018
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The one constant in life is change.

It sounds cliché, but it’s very true. Almost everyone will have a moment where change will rock the typical steadiness of your life. A health scare. An unexpected job change. Divorce. A significant drop in the market (i.e., a bear market) as you’re on the verge of retirement. These shocking twists can make us want to scramble and take immediate action to right our suddenly turned around world.

However, sometimes the simplest solutions are the best. When coping with physical imbalance, the key is to focus on a stationary point.1 This allows your brain to make adjustments to maintain your equilibrium. The same applies to other life changes. Fear and frustration may urge you to take some unexpected course of action to address sudden changes, and sometimes these knee-jerk reactions cause more harm than good. In those highly-charged moments, soliciting some professional council, like from a trusted financial advisor, can help us locate that stationary goal and work with us to identify any adjustments that need to be made.

Every time I meet with my clients, I remind them what we’re working towards. Yes, I want to be made aware of any changes they may have experienced, but I also want to remind them what all the decisions we’re making and actions we’re taking are working towards. We planned for the unexpected expenses by saving an emergency fund. For my younger clients, momentary dips in the market don’t necessarily derail us from our long-term goals. In fact, it actually provides purchasing opportunities. Additionally, markets go down, but they are always achieving new high’s long-term. For my clients on the cusp of retirement, these dips were prepared for by diversifying their savings and expanding their emergency fund. With the long-term goals in mind, it’s easier to see the horizon from within the storm.

The trick of it all is to stay focused on the long-term vision of the life you’re trying to create. I’ve learned that this applies not simply to your finances, but other aspects of your life like your career or your family as well. Changes will occur, and your world may get a little rocked, but as long as you take a breath and continue to focus on your long-term goals, you’ll find yourself on sturdy ground once again.

  1. https://www.scienceabc.com/sports/why-focussing-on-something-helps-in-maintaining-balance.html

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By
Jeff Motske, CFP®
January 14, 2019

I am a big believer in personalization in all aspects of life. The road to your goals, financial or otherwise, is paved by the personalized steps you’re willing to take and in the direction you wish to work. Driving all of that should be more than an idea or a simple plan. What is needed is a personal mission statement. A mission statement creates a sense of purpose and authenticity that acts as a compass and drives all your decisions in the right direction.

When creating your mission statement, be sure to keep it brief. Just one to two sentences will do. Approach it the same way you would approach starting your own company, reflecting your goals, your dreams, and your values. At the same time, be sure that it extends beyond your professional life and encompasses your personal life and your lifetime goals as well. Once you have your personal mission statement, be sure to read it or recite it daily.

Lastly, make sure that your actions reflect your personal mission statement. Your mission statement is meaningless if you’re not committing action to it. If your statement reflects your family values, be sure to make time for your family. If your mission statement focuses on financial independence, make sure that you’re sticking to a budget and have an all-encompassing plan. Be sure what you’re doing reflects what you claim to value.

Life can move fast, and everyday decisions can distract from your long-term vision. To ensure that you stay true to what you value and on course with your goals, create a mission statement to act as your compass and ensure that your life truly reflects you.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

By
Gonzalo de Leon Plata
September 27, 2017

When you put the words, “retirement,” “investments” and “risk” in the same sentence, most of us will automatically think about market risk, you know, the possibility for an investor to experience losses due to overall performance of financial markets1.  According to the 2014 Annual Retirement Confidence survey, 88% of retirees are worried about maintaining the same standard of living.  While Market Risk is a very real reason to worry, there are other risks that may throw a wrench into your financial plan. This time we will discuss the possible need for Advance medical care, how much it could cost, and how to be ready for it.

The Risk: There is a 50% chance that any of us will need some form of Advance Medical Care2.  In other words you or your spouse WILL need Advance Medical Care. The risks are so high and yet most investors don’t prepare of it.

The Cost: Know the potential damage. The numbers don’t lie. The average cost of long term care in the US for Nursing Home Care for a Semi -Private room is a whopping $225 per day3.  The average stay in a Nursing home is 892 days.  For easy math you are looking at a $200,000+ cost above and beyond your living expenses.

The Solution: Use small dollars to cover big expenses. Get life insurance with living benefits.

One solution that is becoming more and more popular is getting a life insurance plan that can be used to cover Advanced Medical Care. Some insurance companies offer something called Living Benefits Riders. These riders allow you to “advance” a portion of your death benefit if certain conditions are met, such as Terminal illness, problems with the Activities of Daily Living  and life threatening conditions.

Building a Financial Plan that can withstand the risks of life is complicated.  Make sure you hire a Financial Coach to help you prepare for the unknown. Thinking outside the box may be a way to protect your golden years.

[1] www.investopedia.com/terms/m/marketrisk.asp

[2] http://www.aaltci.org/long-term-care-insurance/learning-center/probability-long-term-care.php

[3] www.genworth.com/about-us/industry-expertise/cost-of-care.html#

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