Fruit flies don’t worry about Inflation and Lifestyle.
But if you really care about personal goals and aspirations, these will prove absolutely vital to you.
Inflation- It’s Personal
Young people saving for a home (or their next home) find prices rising 10% or more per year. It takes diligence and good planning to buy into today’s real estate market. Other goals may touch travel, student loans, family, career. What else is top of mind for you?
Age 50+ our plans for leisure and travel can change remarkably. You may prefer hotels over camping, the Mediterranean over Mexico. Ageing turns up the dial on personal lifestyle goals and the price to match.
In older years health costs are rising 10% (a huge risk to family wealth). Homes would be some peoples’ biggest asset, and eventually the house may pay the cost of personal comforts and care.
What distinguishes your needs, goals, desires and comforts from other people? How does this impact your success with money and the personal inflation you are experiencing?
Living Standards Replacement Ratio Living
This usually applies to retirement but is vital at any age. Consider the family where a parent doesn’t make it home safely. Was there a freak accident? Did someone die? or will there be months in hospital? Will you lose what you’ve already built: your home, children’s sports or lessons, your future retirement? What comforts will be gone if the tap to your family income suddenly gets closed?
Kids today will be bigger kids tomorrow …with bigger expenses than ever! That’s why our plan must continue to build wealth, at the same time as insuring it. Most families aren’t independently wealthy so we arrange certain insurances (life, disability, critical illness) to keep the tap flowing and families safe the next 20, 30, 40 years.
Retirement and older … you’ve heard a rule of thumb — you need 70% of pre-retirement earnings to enjoy retirement. But, “whose thumb?” Bill travelled for years and wants to stay home, develop new friendships and artistic activities that can float on 35% of pre-retirement earnings. Marjorie and her husband got several short trips but their hearts now are set on the Mediterranean, rivers of Europe and Asia, being away two months at a time. Their numbers need 120% to 150% of pre-retirement earnings for the next ten years.
“What is Most Important to YOU?”
When we discuss your personal goals and planning I ask: “What is most important to you about your money …and your life?” We then continue to focus on your unique desires and “lifestyle goals.” We’ll clarify budget and cash-flows, insurance and investments, all to secure your wealth and lifestyle goals. Then too at times we’ll touch on what would be “one more thing” you want to add to your goals.
This is personal! It’s your life; your money! We align your wealth to fit the life you choose.
Guiding Your Future TODAY
Our financial planning is so much more than one can touch in this brief space. Reach me directly, learn about our team. Explore how we can secure what you’ve already achieved plus advance your continuing goals for Life and Wealth, Leisure and Loved Ones.
Freely share this letter whenever it can help a neighbour or friend, and ease the concerns of someone you know. Introduce us — we love to help.
Yours in Financial Security for LIFE!
Brian Weatherdon, MA, CFP, CLU, CPCA. 905-637-3500
627 Guelph Line, Burlington, Ont. L7R 3M7. 1-877-937-3500
** This monthly letter touches on key strategies in Canadian and global investing and financial planning. This letter is not an offer to sell any kind of security, insurance, or program. Historical returns and risk measures are not a valid guide to future performance. Returns are from publicly available sources and research from a variety of firms including but not limited to GLC, RBC, CIBC, Mackenzie, Franklin Templeton. Opinions reflected in this letter belong solely to the author and no other body is responsible for the content expressed here. We value opportunity to consult alongside your legal and accounting firms to advance your financial security and unique goals. We are grateful always to receive your comments and questions.