Living the life you really want

Traditional financial planners concentrate on building wealth, while those who include life planning emphasize helping clients find ways to use their wealth effectively to get more out of life.

The process is defined by financial planner Steven Shagrin as:

⏩ Helping people focus on the true values and motivators in their lives.

⏩ Determining their goals and objectives as they see their lives develop.

⏩ Using these values, motivation, goals and objectives to guide the planning process and provide a framework for making choices and decisions in life that have financial and nonfinancial implications or consequences.

Shagrin also noted a number of other factors to consider, including current age, age at retirement, longevity, net worth, saving rate, retirement budget, sources of income, inflation, charitable goals, investment strategy, investment returns, current budget, and retirement lifestyle.

Wade Pfau, a professor in the Financial and Retirement Planning program at The American College of Financial Services, put it accurately and succinctly: Financial advisers who only focus on select investments will struggle to add value. On the other hand, there is immense value in comprehensive financial planning and good decision-making.

It’s important to remember and easy to forget that financial planning goes beyond choosing investments.

There is a strong need for consistent and increased savings. More than 60 percent of Americans have less than $1,000 in a savings account. More than 20 percent don’t have a savings account, and nearly 30 percent don’t have an emergency fund.

The average total contributions to 401(k) plans now top $10,000, which isn’t enough. Many young workers are putting off saving until they’re older, and presumably making more money. Don’t underestimate your life expectancy. Consider using your money to purchase experiences, not possessions. Shorten your commute, aim to have enough money to lead the life you want.

Live life the way you really want.