MONEY matters

We are currently in the midst of one of the largest transfers of wealth from one generation to the next that our country has ever witnessed. That’s because as parents of baby boomers start to pass, the legacies they are leaving behind in the form of inheritances are in the trillions of dollars.

Last year alone in our financial planning practice, one out of three new clients contacted our practice as a result of receiving an inheritance. And in many cases, the inheritance they received was a game changer - meaning the amount received was large enough to create financial independence.

Giving your power away when it comes to your money is an age old affliction that affects both men and women, the rich as well as the poor, the famous and the non-famous, the young as well as the old.

If you’re a single boomer and find yourself happily or begrudgingly back in the dating scene, it’s only a matter of time before the right person comes along and captures your heart as well as your imagination.

Today I had a Skype call with one of my favorite clients. Stacie, a 1^st generation American, is in her late 30’s, currently lives in Florida, and up until very recently, had a very successful and lucrative career as an engineer for a global consulting firm.  Stacie had the type of career that her family had dreamed of for her, and her parents were willing to immigrate to the U.S. to ensure that she could have. 

Facing reality when it comes to planning for a successful retirement is easier said than done. For many people, just effectively managing their day to day finances is already a daunting challenge. Add to that list of to-do’s developing a realistic retirement plan and you risk becoming overwhelmed by it all.

What often happens instead is a form of denial and fantasy. We tell ourselves that somehow, someway, our investments will reap double digit returns from now until retirement day. That our incomes will double and cash windfalls are right around the corner. That the 20,000 shares of that penny bio-tech stock we purchased will be worth a million or more dollars in ten years and our home will be worth much, much more than we ever anticipated down the road.

Investing, managing, saving, spending and earning money - these linear, left brain aspects of our money relationship offer plenty of potential for challenges. But it’s when we delve into the other dimension of our relationship with money, our feelings, that things get really tricky and mighty interesting.

Our feelings, that messy and confusing aspect of our relationship with money will often hold us hostage to our egos and prevent us from feeling the fulfillment and peace of mind we so desire. Way too many of us live our lives with feelings of scarcity and poverty consciousness. Instead of money being our servant, it becomes our master.

Thanks to my friend and client Eddie Mac for passing on this excellent article about raising your kids with a good set of values around money.

Of the many aspects involved when designing a comprehensive financial plan, probably my favorite element of all is helping clients decide on their number.  The number I’m referring to is your total net-worth, but more specifically, the amount of liquid assets you’ll need to accumulate by the time you’re ready to retire or stop working for money.

There’s really no easy way to define the experience of waking up your first Monday morning after a lifetime of work, and realizing you’re retired and financially independent. You made it! You don’t have to go to your cube/office/practice/business again - EVER.

For some, this first Monday morning is a Zen experience, transformational in essence, very spiritual and very powerful. For others, it’s one of the most terrifying days of their life.