Stops Along the Way in Life
The Financial Plan Can’t Account for All Possibilities
We make our best effort when we sit with a client to consider the different events that will arise in the future when we are putting together a financial plan. However, it can be naive to think that life will unfold exactly as planned. There are a lot of stops along the way in the journey of life, some happy, some sad, some anticipated and some quite unexpected.
Some things are easy to foresee and plan for, such as kids going off to college, retirement, buying a new home, and so on. However, things often happen in life unforeseen. For example, a new job opportunity could arise, a dream home could become available, or a child might get a scholarship for sports or academics. If you haven’t “anticipated the unanticipated”, so to speak, you may find that you don’t have the flexibility to handle the situation when it arises.
How this relates to planning, when you expect the unexpected, you might not put all your money into non-liquid investments, for example. You’ll then have access to that capital. Another example might be that interest rates unexpectedly decline, creating an opportunity for a new mortgage.
The key is to have a plan and strategy that maintains a great deal of flexibility such that, though you might not know the specific nature of an unexpected event, you are still prepared for the unexpected.
The Benefits of Planning for Unexpected Stops Along the Way in Life
When you remain flexible in your financial plan and investment strategy, often with the aid of a good financial planner, you are prepared for those unexpected stops and turns along the journey of life. Cash is there when you need it most. This could be an expected illness, a death in the family, job loss or a job change. No one can plan for all of these things, yet keeping an eye on the certainty that something will happen, can help you be in the best place at the right time.
The Advantages of Having a Financial Advisor
Our goal with each of our clients is to be there for them when such events occur, whether or not money is involved. We want to be one of the first people they call to know how we might be of service to them, to offer advice and direction. We want to be their trusted advisor in all situations, good and bad. The more knowledge we have, the better service we can provide, the better support we can offer. Often, things that might seem inconsequential might later become important, and we are able to act on them because of the depth of understanding we have of our clients.
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Todd E. Frank, CPA/PFS, MBA is the President and CEO of Frank Financial Advisors, a Registered Investment Advisory Firm (RIA) serving clients nationwide from our headquarters in Carlsbad, San Diego, California. As an RIA, Frank Financial Advisors is able to offer truly independent, fee-only financial advisory services.
