INDUSTRY INSIGHT: 
By Justin Krane
For the past year, my son Jonah has watched in awe as kids older and stronger than him climbed across the monkey bars. Jonah has tried to do it himself – but was unsuccessful, until last weekend. Before, he could only reach out to the first bar, and then he would fall down. But this time he had a little help from someone other than me or my wife – his grandfather. My father encouraged him to try and reach for the next bar, which Jonah actually did. (Do kids ever listen to their parents?) As Jonah was successfully traversing each bar, his face was the happiest I had ever seen, and when he made it to the other side, he was sporting a huge smile ear to ear. He took a chance, and accomplished his goal.
It’s as important to plan ahead as it is to enjoy what you have today.
Why not traverse your own monkey bars on your terms? Think of a time when you felt you were doing exactly what you were meant to be doing, being the person you wanted to be. Who are you when you’re at your very best? How can you arrange your life so that you are doing more of this? Your answers here are the first step in developing a financial plan. It’s the process of identifying and setting goals that gets us going in the right direction.
In my financial life, I find myself torn between saving for the future, and using money to do things today that my family and I enjoy. Should I save as much as possible to live the life that I desire in retirement? Or, should I be a spendthrift and live a life of instant gratification because no one knows what tomorrow may bring? Imagine asking these questions to the people that bought homes that they really couldn’t afford. While some thought they were stretching to make sound investments for their future, others looked at the apparent fast and easy money available and were acting as speculators. In either case, their actions may have been different if they had spent the time to adequately determine honest answers to the questions posed above. It is easy to say that our
financial and personal lives should be balanced, but finding that balance requires vigorous introspection and subsequently, thoughtful planning.
In addition to goal setting, here is just a sample of some key ingredients that should be added to the mix in your plan:
- Risk – How do you view risk, and how much volatility are you prepared to withstand in order to reach your goals?
- Debt – Are you comfortable with it? Or does that large mortgage and home equity line concern you?
- Legacy – How do you want to be remembered when you are no longer here?
- Philanthropy - What are the causes that you would like to give to, and why?
- Your Commitment to Your Plan – Will you be invested in the relationship between you and your financial planner?
When I speak with elder clients, their life experiences were the highlights of their lives, not their material possessions. As one of my clients expressed, “The measure of a wealthy life is not how much money you have when you grow grey, but what that money allowed you to experience throughout your years.”
Registered Representative - Securities offered through Cambridge Investment Research, Inc., a Broker / Dealer, member FINRA/SIPC. Investment Advisor Representative - Cambridge Investment Research Advisors Inc, a Registered Investment Advisor. Cambridge and Krane Financial Solutions are not affiliated.
