Preparing for Your Financial Future (While Living in the Present)

In our line of work, planning ahead is—literally—the name of the game. When clients come to us, it’s with the hope and expectation that we can help them be proactive about their ongoing financial journeys.  At K&B, we’re committed in our goal to help each and every client live comfortably in the present while laying a foundation for a solid financial future.

Planning ahead is essential, but it’s just one part of each individual’s financial journey. In life, needs and priorities wax and wane, and money is meant to be spent and enjoyed as well as saved and protected. When our clients come to us, they’re not just asking advice on preparing for their financial futures—they’re also seeking guidance on how to plan ahead while still living happy, comfortable lives.

If you’re struggling to strike the right balance, here are some things to think about.

Do you know your short- and long-term priorities?

In preparing for your financial future, it’s critical to know what, exactly, you’re planning for. Are you striving to create the largest possible nest egg for retirement and beyond? Are you saving for a large, more immediate purchase, like a wedding or a down payment on a house? Are you concerned with the financial wellbeing of family members?

Your perfect balance of short- and long-term financial planning will largely depend on this balance of priorities—and on your unique financial personality. When you work with K&B, you’ll work with an advisor who takes the time to discuss and understand your short- and long-term goals, and who will work with you to identify your MoneyMind®, which helps you (and us!) understand your investment personality.

Have you thought about the guardrails on your financial journey?

Finances, like life, are impossible to plan for perfectly, because so much of what affects your finances falls outside of your control. With that reality in mind, it’s important to think about those things you can control, which are designed to keep you safely on the road to your preferred outcome—what we at K&B call the guardrails on your financial journey.

You can’t control the market, for example, nor can you control the macro-economic events that influence it. But you can control certain financial decisions in your own life: how much you spend, how much you save, the level of risk you’re comfortable assuming, the legacy you want to leave, and (to a certain extent), the timing of your major life events.

As you grapple with planning ahead while enjoying the present, keep these guardrails front of mind and work with an advisor who can offer guidance.

Are you thinking about retirement?

No matter how old you are, it’s never too early to begin thinking about retirement. In order to save appropriately, you’ll need to have some idea of how much income you’ll be eligible to receive if you retire at various ages. You can start by visiting Social Security’s quick calculator, which can give you a rough idea of your expected benefits.

In general, it’s wise to know all your options well in advance of retirement. Review your 401(K) plan(s), ensure you’re investing the proper amount in your retirement accounts each year, and work with an accountant to ensure you’re preparing for retirement in the most tax-efficient possible way.

Have you thought about your legacy?

As you prepare for the future, you’re likely thinking about the legacy you want to leave—and the ideal legacy looks different for every person. If you’ve been saving carefully for years and have accumulated a comfortable volume of wealth, you may have several questions with which to grapple. Should you spend those assets now, so you can enjoy the latter portion of your life? Should you purchase something luxurious, like a vacation home for your entire family? Should you set funds aside for education, so you can give your children and/or grandchildren a head start? Should you donate a material portion of your wealth to organizations and causes you support?

As you consider these questions, ensure you’re having necessary—and sometimes challenging—conversations with your spouse and your family to ensure everyone is aligned. Your financial future is yours, yes—but many others will likely feel the ramifications of your decisions.

Is your documentation in order?

It’s not exciting, but it’s essential—in order to prepare for your financial future, you’ll need to complete certain housekeeping items. For example: have you created a will? Have you considered whom you would appoint as your power of attorney? Do you have a trusted contact who can work with your financial advisor if need be? Getting your documents in order is key to ensuring you can achieve your desired goals—and what’s more, it will give you peace of mind in the here and now.

Are you ready to get started?

If you’re ready to live your best financial life—both now and in the future—don’t wait. At K&B, we’re committed in our goal to helping each and every client live as comfortably as possible in the present while laying a foundation for a solid financial future. Reach out for a conversation with one of our advisors today.

United Capital Financial Advisers, LLC d/b/a Goldman Sachs Personal Financial Management (“GS PFM”) is a registered investment adviser and an affiliate of Goldman Sachs & Co. LLC and subsidiary of The Goldman Sachs Group, Inc., a worldwide, full-service investment banking, broker-dealer, asset management, and financial services organization.GS PFM is not affiliated with Kimelman & Baird, LLC.  All names, logos, and slogans identifying United Capital and United Capital’s products and services (including, without limitation, HonestConversations®, MoneyMind®, FinLife®, Financial Control Scorecard®, Live RichlySM, We Help You Live RichlySM, Helping People Live Richly®, One Best Financial Life®, Ideal Life Index®, GuideCenter®, InvestmentViewfinderSM, United Capital Financial Life Management®, and Financial Years of FreedomSM) are trademarks and service marks or registered trademarks and service marks of United Capital or its affiliates in the United States and/or other countries.© 2020 United Capital Financial Advisers, LLC, a Goldman Sachs Company d/b/a Goldman Sachs Personal Financial Management. All Rights Reserved.

All investing is subject to risk, including the possible loss of the money you invest. K&B does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice.