Monitor From Day 1
Occasionally I will meet someone who is distraught over their situation and admits they have done little to keep track of what their advisors have done over the last several years. Not good for them or their advisors. Trust but verify works well. Rarely if ever do I take action on my client’s behalf without getting their approval first. And most of my clients speak with me at least quarterly, usually face to face. If you have questions ask. The advisor works for you.
Measure Your Progress
One of the ways to help you monitor is to get a report initially that outlines the proposed actions whether they be investing, insurance purchases or whatever. Such a report should have a timeline that shows anticipated values under a set of assumptions. Now you have something to measure progress against. Your advisor will want that report also because it avoids misunderstandings down the road. If you don’t get a report up-front, it may mean the advisor isn’t planning on being around down the road.
Maintain Is Crucial
If you are monitoring and measuring your situation, you will know whether you are maintaining your commitment to live in balance. Are you living within your means or have you gotten lax about spending, created some credit card debt, and stopped investing consistently for longer term goals? Have you begun to slide in maintaining a cash reserve for emergencies; using those rainy day funds for this year’s vacation instead?
Life does not always play out according to our plans and schedules. We will have many opportunities to decide who we are financially. Are we the person who seeks balance and a less stressful lifestyle, or someone who settles for living more on the edge financially. Our decision to not seek balance in our financial life has consequences for all other areas of our life. It does not exist in a vacuum apart from our social, emotional, spiritual, and other aspects that we live with daily.
Balance is Beautiful!
Everything we want is filtered through the spectrum of “when” and “how much.” As life unfolds, our monitoring allows us to adjust our “when” or “how much” or both to maintain the balance we seek. A temporary loss of income, unplanned medical expenses, or the desire to help a family member, can lead us to need to adjust our expectations for our financial progress.
By having financial balance — spending within our means, setting money aside for an emergency and some for longer term desires, and by selecting proper investment and protection programs — our adjustments will be relatively minimal and will not jeopardize the life style we seek.