In pursuit of the perfect wealth plan, you want everything, well…perfect.
You want BALANCE.
The daily snapshot of the plan, the investment portfolio, the progress, the returns, the outcome, the pretty pie chart…you want it perfect.
But you see, that kind of daily balance is a myth.
Let me explain.
Consider money. We like to remind clients when we begin planning for the first time that money can really only go to one of four places:
- You can spend it during your lifetime up until death (or second to die for couples). This makes sense and is generally the primary purpose of money…to live off.
- You may choose to gift money to friends and/or family, either during life or after.
- You may choose to gift money to charity, again either during or after life.
- Depending on the current tax laws and the net worth of the estate at death or second to die, money may have to go to taxes.
The best part is that you can choose and plan for each of these four places.
So that’s it – that’s where money can go.
But as simple as that reads, it’s not something that can ever be perfect…because things are always changing.
People change their minds all the time.
Markets change, lifestyles change, gifting to charity changes, and family dynamics change over time as well.
And we all know the tax laws are always changing.
So life change is constant, like gravity – it’s always there, you can’t solve for it, and you have to plan around it. You have to acknowledge it.
There is no solution for “gravity.”
So, how can a plan balance when gravity can’t be ignored?
By adding “ing.”
Instead of having “a plan,” you do “planning.”
Static plans are sh*t, and they are typically delivered incidentally to sales activity. Static plans get created, printed, and delivered to get “the sale.” They are then ignored and start to rot the very next day.
In fact, wake up 18 months later and all the information, assumptions, and output are stale and rotting.
The good news is that while the daily balance is a myth, overall long-term balance is not – you just need to keep up with the planning.
The best thing to do is outline what the money is for and then map out the plan to make it work for you. Once you do that, you have to keep planning to account for and overcome the changes in life that are as constant as gravity.
We do this for clients through our Private Wealth Design process. We have a lot about it on our website or let me know if you want to have a one-on-one discussion.
Keep looking forward,
Important Disclosure Information
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Monument Capital Management, LLC [“Monument”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Monument.
Please remember that if you are a Monument client, it remains your responsibility to advise Monument, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Monument is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of Monument’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request.
Please Note: Monument does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Monument’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.
Please Also Note: IF you are a Monument client, please advise us if you have not been receiving account statements (at least quarterly) from the account custodian.