By When I was a young rep, a typical day involved a client visit or two, and maybe one meeting with a prospect. Over the 25+ years I’ve been in this business, my days have grown to the point where I often see 5-8 client families. What remains true is that it is very important to me to spend my time listening to people.
But when I first started as an advisor, I used to bring some of my clients’ concerns home with me, specifically about the cost of things. Days when the economic reports were bad, inflation was up, and the markets were down sometimes made it hard for me to come into the office and find answers.
I laugh now because — who was I to think that I bore any responsibility for the global financial market? Over the years, as I’ve continued to take in all the economic reports, observe how the media covers the news, and listen to our client families’ worries, I have learned how passionate we get about things that we have no control over.
The world has changed since then, and that passion has intensified. Still, one thing remains constant: our families are primarily concerned about having enough money to retire, enjoy their passions, and make memories, all while staying retired, despite the rising costs of everything in their lives.
Here’s a statement that surprises a lot of clients: As an American, no matter the decade you lived, worked, or retired, you’ve been lucky enough to experience inflation. If you’re surprised I say you’re lucky, just do a quick internet search for what deflation looks like. We want steady inflation over time to fend off the devastating effects of deflation. It’s the mark of a well-functioning economy.
That naturally involves some periods of higher-than-normal inflation, like we’re experiencing now, but the goal of the Federal Reserve is to minimize those periods without handicapping American progress. It’s understandable to be concerned during those periods that your hard-earned money won’t carry you through retirement.
But I can speak for Alex, Kyrk, and our whole team when I say that we are proud of the job we’ve done for our client families to navigate and address those ongoing concerns. In fact, one of our team’s favorite things to do is, when the numbers say it’s possible, is to suggest to clients that they take a cost-of-living raise! This allows them to continue to enjoy, experience, and celebrate all the milestones in retirement while still keeping an eye on the longer-term goals, such as passing on wealth to family or nonprofits, and considering how those gifts may affect their long-term financial well-being.
From time to time, we do have to have conversations with client families about overspending. We have to talk about priorities. Is a European vacation or your financial security more important? Our team is here to provide guidance, but we also understand that some clients don’t anticipate reaching 90 or 100 years old and want to spend money when they want to. That’s fine, if that’s your mindset. But we’ve found that to be a very small group within the overall picture.
I want you to know that we never judge you on your money decisions. Your money is your money, and how you spend it is entirely up to you. That said, you’re not just a set of numbers on paper. The better we know you, the better we can plan to help future you and address your goals and objectives.
So if you’re reading this and thinking, I haven’t shared something that’s on my heart or in my mind that I’ve been stressing about, I would challenge you to make an appointment with us and take the step of sharing your thoughts with us.
And for those of you who have shared everything with us but continue to digest the world’s financial news with raised blood pressure, I would challenge you to stop. Use that time to read something you enjoy, something that brings you joy. Make a phone call to a friend or text a grandchild (after all, we know they’re not going to answer the phone)! Use that time to connect.
For those of you who have never worked with us and would like guidance in pursuing your financial goals, let’s take that first step together. Reach out to our team today. We only have this life. Let’s make sure it’s a great one for you and yours. Allow us to help you develop a strategy and financial plan designed to address your goals and financial concerns.
Article by David Smyth, Senior Partner and Wealth Advisor at Family Financial Partners — a financial services firm in Lexington, Kentucky.