The essential ingredient of a financial plan

Here’s a recipe for a basic financial plan:

Take one or more income sources and pour into a big pot. Add appropriate amounts of life, income protection and permanent disability insurance. Simmer for a few decades while slowly adding superannuation contributions and a dollop of non-super savings. Stir in some constructive debt, but take care to keep a lid on it. Dip into the pot occasionally to taste. Simmer steadily, and consume regularly after retirement.

Hmmm. Pretty bland, isn’t it? More like medicine than minestrone.

What’s missing, of course, is the most important ingredient of all – a generous sprinkling of dreams.

Finding the dream

In a world of almost limitless possibilities and with new things constantly clamouring for attention, it can be surprisingly hard to decide on which dreams you want to pursue. The basic goals of securing your income, protecting your family and building financial independence through retirement are all very sensible and worthy, but what’s going to put the zing into life? What do you really want?

One way to pin down what matters most to you is to make a note every time something sparks a strong visceral response or a genuine interest. It might be a good cause to support, a skill to learn or a new career to pursue. Or it could be an exotic place to visit or a situation you want to change. In fact, it can just about be anything, but whatever ‘it’ is, it will spark a consistent and enduring emotional desire. And you aren’t restricted to just one dream, of course. You’re allowed as many as you like.

Share it

So you’ve found your dream, something that you are prepared to commit time, money and energy to. What next? Well, to become a reality your dreams need to be turned into goals, and that means building plans around them. It also means running your dreams through a reality check, and maybe modifying them if necessary. A trip to Mars next year? It ain’t gonna happen. Next birthday in Paris? That’s much more doable.

While your financial planner may not be the first person you think of sharing your dreams with, it really is worth doing early in the relationship. Whether it’s a specific goal or your lifetime wish list, your adviser can help with the reality checks, work out the financial requirements and craft a strategy that gets you as close to your goals as possible. And yes, that strategy probably will include boring things like superannuation, insurance and savings.

However your adviser will be equally interested in whatever it is that leads to your personal fulfilment. He or she may even help you dream bigger, discover more possibilities and opportunities, and help you stay on track.

The best laid schemes

For all the value of having clear goals, life has a knack for tossing up both random obstacles and opportunities. So be flexible in your outlook. Enjoy the journey, whatever life serves up. After all, it might turn out to be a tastier dish than the one you originally dreamt.

Ready to make your dream a reality? Get in touch today!


Important: This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

 

 

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