Latest news with #lifeplanning
Yahoo
04-07-2025
- Business
- Yahoo
With tariffs and market turmoil, what events should trigger a financial plan update?
Q. What sort of triggering events would lead someone to update their financial plan? I am 50 years old and with the recent volatility in the stock market and talk of new and prolonged tariffs that may impact my job status in the near future, is now a good time to have another look at the plan I made five years ago? And if so, what should I be focusing on in the new plan? —Anika FP Answers: Anika, if market volatility is bothering you then it is time for a plan review, especially if you haven't looked at it in five years. The answer depends on whether your plan is an investment plan or a financial plan. Maybe the best way to answer your question about triggering events is to write about what a financial plan is and why have one. For me, proper financial planning helps you get what you want and keep it, no matter what happens. It is that simple. The planning process will walk you through three different steps in this order: life planning, financial planning and financial advice. That is my approach and each of these steps will have their own plan review triggering points. The life planning stage is about identifying the things you are doing now and want to do in the future. These things often revolve around your home, lifestyle, family and career. After identifying these things you will put a value on your assets and liabilities and prepare a detailed cash flow statement, essentially putting a price tag on your lifestyle. A big lifestyle means big money and a small lifestyle means small money. Lifestyle drives everything and answers the question, 'Enough for what?' Financial planning follows life planning and answers the question, 'How much is enough?' During this step you will look at your current and future assets and liabilities, and income inflows and outflows. After applying different financial planning and tax strategies to make things as efficient as possible you will know if you are on track to have enough, more than enough or not enough. Financial planning lets you know what is possible. Once you know what is possible you can revisit your life plan, test out different scenarios, start setting realistic goals and prepare a game plan. With your game plan in hand, it is time for supporting financial advice. It is at the advice stage when you will start incorporating financial products such as investments, insurance and mortgages into your plan. Without going through the first two steps and understanding your circumstances, how can anyone give you advice? Anika, if that is how you constructed your financial plan, I believe you will recognize many triggering points for a plan review and what to focus on. Think about the life planning step. If you experience or plan for significant life changes around your home, lifestyle, family or career, it is time to request a review. The same is true with financial planning. If there are, or will be, significant changes to your assets, liabilities or cash flow then it is time for you to request a review. At the same time, there may be changes to taxes, account types, government benefits, and so forth, which your planner will be attuned to and they may contact you for a review. I understand why market volatility makes some people anxious and wanting a planning review. And certainly if you have concerns, get in for a review. It will make you feel better. In addition to using trigger points for a planning review, have a good review once a year. You will become more comfortable with the projections and gain a better understanding of how everything is coming together. As you gain knowledge, more possibilities will open up and you will be better able to deal with changes as they occur. I also want to suggest that in the life planning stage be conscious that life is moving on and there are no do-overs. There will come a time when you won't be able to do the things you are doing today or, the things that have meaning to you today may not have the same meaning in the future. If you can afford to do things you want to do today, what is holding you back? Your awareness of time, life and moving on should bring a sense of urgency to financial planning so there isn't five years between reviews. Use the passage of time as motivation to create a plan or have an annual review. What is the one thing you would really like to do this year? Let's plan it out so you do it. Then let's do it again next year, and the year after that. This is the way your money and decisions will help you live your life to the fullest. FP Answers: What is the best way for Linda to die broke? How does Jon invest in his RRIF so he has enough cash when he must start withdrawing? Allan Norman, CFP, CIM provides investment advisory services through Aligned Capital Partners Inc. (ACPI). ACPI is regulated by the Canadian Investment Regulatory Organization He also provides fee-only certified financial planning services and insurance products through Atlantis Financial Inc. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Sun
24-05-2025
- Entertainment
- The Sun
Win a copy of Happy Is The One by Katie Allen in this week's Fabulous book competition
ROBIN knows the date he's going to die – born on the day Halley's Comet last appeared, he's destined to check out when it returns. He's methodically planned his life around this, but that all changes when he has to go home to care for his ailing dad. Warm and tender, this will really make you think. 10 lucky Fabulous readers will win a copy of this new novel in this week's book competition. To win a copy, enter using the form below by 11:59pm on June 7, 2025. For full terms and conditions, click here.
Forbes
08-05-2025
- Business
- Forbes
The New Retirement Reality: Managing Four Distinct Financial Phases
Modern retirement isn't about escaping work—it's about creating financial freedom for both partners to pursue meaningful purpose across all four phases of your post-career life. The old golf-and-rocking-chair retirement is dead. Here's how to navigate today's complex retirement journey. In our firm's planning room, we have witnessed a narrative that's becoming increasingly common: The spouse of a successful executive, practically in tears, telling us, 'They've been retired for six months. They've traveled. They've golfed. Now they're just... bored and driving me crazy. Was this retirement a mistake for both of us?' This moment captures what many future retirees and their partners miss: Retirement isn't a single phase but a journey through distinct financial and psychological transitions that can span 30+ years. As experts who have guided thousands of couples and individuals through this terrain, we've mapped what we call the 'Four-Phase Framework' that every successful retirement plan must address. Phase One: The Honeymoon (Active Years with Ambiguity) Just like 'freshman year' of retirement, these initial 5-10 years typically involve: Most couples enter this phase with a healthy dose of ambiguity. They watch friends post exotic travels on social media while privately wondering, 'Is this okay for our situation? Are we spending too much or too little? Should we be more cautious?' This uncertainty often creates tension between partners with different risk tolerances. The Financial Challenge: This phase presents a planning paradox—the highest spending during potential market vulnerability. The early years of retirement carry the greatest sequence-of-returns risk, where market downturns can permanently damage your long-term security. Strategic Solution: Implement the 'Seven-Year Buffer' approach. For clients facing market volatility, we create three distinct pools of retirement assets: This buffering strategy prevented panic selling during the tech bubble crash, the 2008 financial crisis, COVID-19, and recent market corrections. It works because it addresses both financial and psychological security needs. This is an art, not a science. Phase Two: The Transition (Settled Years) Around 10-20 years, retirement patterns stabilize with: The Financial Challenge: Navigating the 'Goldilocks tax zone' between leaving your career and Required Minimum Distributions. Strategic Solution: Use this window for strategic tax management: However, beware of unintended consequences: These strategies must be coordinated with ACA healthcare subsidies and future Medicare IRMAA thresholds to avoid thousands in additional costs. Phase Three: The Support Years The third phase often involves: The Financial Challenge: Managing the triple threat of longevity risk, healthcare inflation, and potential family support needs. Strategic Solution: Build flexibility through: Phase Four: Living Solo When one spouse survives the other, they often return to a phase remarkably similar to Phase One—characterized by ambiguity, transition, and redefining boundaries. This phase requires special attention because: The Financial Challenge: Balancing immediate emotional needs with long-term security while navigating potential cognitive changes that come with aging. Strategic Solution: Your Key Takeaways: Remember the executive who was driving their spouse crazy? After implementing this four-phase approach together, the couple found balance. The executive began consulting 10 hours weekly and developing community connections, while their spouse maintained their own separate interests and social circles. Not only did this restore harmony and purpose in their relationship, but it reduced their portfolio withdrawal rate by 30%, dramatically improving their long-term security. Modern retirement isn't about escaping work—it's about creating financial freedom for both partners to pursue meaningful purpose across all four phases of your post-career life.
