As the year comes to a close, we find ourselves in the spirit of giving as we spoil our loved ones and support our favorite charities. While we’re quick to open our wallets in December, many will feel the urge to close them again as they formulate a New Year’s resolution. Can you relate?
We likely all can, in some fashion. Giving feels right and is right, and saving feels good and is good. It’s important to acknowledge that money does spark feelings and emotions. But it’s also necessary to understand that emotionally-charged financial decisions can cause us to stray from our goals and cause regret. Here’s our perspective on the topic of money and emotions.
Removing Emotions When It Comes To Money
Our clientele base of professionals has often earned the right to give, and most live a comfortable lifestyle. While a little retail therapy after a hard day may not affect your retirement plan, continual emotionally-driven spending can.
Getting to the root of emotional spending is necessary. While we’re not here to give psychological advice, we have learned that spending on a whim and making poor financial choices is often associated with not having a solid plan.
The keyword from that last sentence is PLAN. “If you fail to plan, you are planning to fail.” It was Benjamin Franklin that spoke those simple-yet-impactful words. Without a plan, it’s easy to lose track of the ‘add to cart’ moments and wonder where your money is going.
With a financial plan in place, your choices begin aligning with your goals on a more consistent basis. While plans change throughout a lifetime, remaining focused on goals is what keeps us on track.
What Actions Come From Having a Financial Plan
When you create a financial plan, you’re drawing out what you want your future life to look like. With a clear picture in mind, the steps necessary to reach your dreams come into focus. Taking consistent small steps in the right direction is what leads many to financial success.
For young investors, this may look like dedicating yourself to the principle of paying yourself first. Do so by allocating a portion of each paycheck to savings and learning to live on the rest. It’s the ‘set it and forget it’ method to prioritize your savings.
Those engulfed in their career and family life may start contributing to a college fund for their children. This way, they can support their high school graduates in the manner they desire when the day arrives.
Many nearing retirement gain confidence in their transition plan by taking their forecasted retirement budget for a test drive and practicing living on a fixed income.
While these seem like simple steps, without a plan, they're easy to skip. Our focus here at Integrated Wealth Management is retirement planning, wealth preservation, and legacy planning. If the stock market feels like gambling, you worry about making it all work in retirement, or you’re confused by your tax situation — this next part is for you.
We Take the Emotion Out of Investing
At Integrated Wealth Management, Burt Hutchinson employs evidence-based investment strategies. Our knowledge of the cyclical nature of the stock market allows us to push the Wall Street hype aside. While we understand life does come with emotion, we want you to know that we remove emotions from our investment strategy.
Market conditions can play into buying and selling strategies. But when you entrust your retirement plan to Integrated Wealth Management, your portfolio is managed with time-tested principles and a disciplined, long-term approach. Without ties to a large corporation, our privately owned firm can effectively serve retirees in our local communities of Wilmington and Rehoboth Beach, Delaware.
We create real and lasting relationships. And through our fiduciary obligation, the fear of an advisor lining their own pocket is removed. We’re a fee-only wealth management firm, which means no commissions, ever.
If you’re nearing retirement, it’s time to implement a plan that will help you prioritize your retirement dollars. We want you to drop the fear and confusion associated with retirement planning. We’re here to guide you through the phases of retirement with evidence-based investing, not emotion.
To learn more about our personalized retirement plans, schedule a no-obligation consultation.