When is enough actually enough in regards to your retirement plans?
We have all heard this phrase when someone has reached the limit of their tolerance for a given situation. We have heard it from our parents, teachers, religious and political leaders, and sometimes, even from our spouse!
When it comes to financial planning "Enough" can have several meanings.
For people who have a fixed income and resources, “enough” is the lifestyle that can be attained with the money they have. Unless their income is indexed, the lifestyle is eroded by inflation and their purchasing power is reduced over time. Their financial plan is to manage their budget and debt to live within their means.
Individuals and families with more control over their income and resources are able to define what their “enough” will be. They can set priorities for their spending and savings, plan for expected life events and protect themselves from potential setbacks. Their financial plan involves setting goals, understanding the range of possibilities for their future lifestyle, and implementing their plan with regular reviews to stay on track.
“Enough” for the next group is a moving target because it depends on the answer to the question "Enough for who?”. People in this group have more than enough for themselves and want to extend their planning to include their children, grandchildren and, ultimately, their community. Their financial plan has the same components as the second group but also includes advanced tax strategies for succession planning, estate planning and philanthropic endeavors.
In other words, they can give meaning to their means.
One of the most important benefits of working with a financial planner is to understand what your situation is so you can have the confidence to live the life you deserve.
That is what we do.