Is financial planning an emergency?
I encourage you to get a real written plan, authored by experts, in place in January 2021.
It's the responsible action for you to take on behalf of your loved ones and yourself.
Imagine the great feeling you'll have knowing you put yourself and your loved ones futures first by doing what's appropriate and considerate.
One of my favorite sayings has been "financial planning is not an emergency" - to stress that it is an ongoing long term process. I say this also to counter the financial products salespersons out there who make their living using every fear and greed tactic in the book to manufacture urgency to buy, buy, buy.
I've decided to change my tune a little.
It's an emergency because you don't know what you don't know - and until an expert(s) has looked under the hood with a spot light - you simply don't know. I can tell you this - it is extremely rare that a first look reveals that you're way ahead in your planning. And almost every first planning effort reveals serious shortcomings,
Let me suggest this. Are you over age 23? Then, yes, you need a plan*. Once you understand and agree, then allow yourself 2 months of inaction - then you should declare it AN EMERGENCY!*
Definition: A "plan" is a written, understandable, step-by-step plan of action overseen by a CFP - Certified Financial Planner. It's updated every 1-2 years and ideally, it is reviewed by at least two other financial professionals, like an investment advisor and CPA/EA.
Our firm has systems/processes in place to make sure the review happens. When a new client comes on board at O'Reilly Wealth Advisors, we call the first planning meeting the "Initial Implementation Meeting". Why? Because we are urgently addressing the "red flags" (examples mentioned below). Once we get into regular progress meetings every 6 months - there are always important things getting done, but it's not nearly as "urgent" as the tasks we complete in the Initial Implementation Meeting.
Common areas of urgency include:
Knowing where you stand generally with respect to saving for the future, Essentially - how much should you be saving to meet your goals? One does not know unless actual planning and projections have been performed.
If your plan says you need life insurance or disability insurance - then getting that in place is an emergency because the moment your health takes a turn for the worst, or you die - then it's too late. Don't "panic" - but don't lollygag!
Estate Planning, particularly the health care directive, is an emergency. You don't want to be incapacitated (not able to speak for yourself) in our current healthcare environment without written instructions declaring who you authorize to act for you and what you authorize them to do! An estate plan that was not followed. Accounts in individuals’ names rather than joint accounts or trust accounts. Don’t leave behind a financial mess that will torture your loved ones for a couple years after your passing. Simplify and clean up.
No succession plan for your business especially if it is a business that with planning could be sold or merged.
Debt issues, excessive liability issues, numerous accounts, no safe system for maintaining usernames/passwords and the list goes on. Let your love for your family inspire you to get it right.
We would be honored to help and the first is very valuable and no cost - the Discovery Meeting. Read about here. Schedule the Discovery meeting here.