Most people walk around with “What if?” questions in their head from time to time. Some of them are fun scenarios, like “What if I want to retire 10 years earlier than planned?”
Other times, the “What if” questions are serious concerns like, “What if my spouse gets seriously ill and I am the only provider for the family?” Or strategic like, “What if my child gets accepted to Harvard?”
There are plenty of “what ifs” that could happen in your lifetime. Not having a solid plan can cause stress and anxiety.
I recommend to my clients to write down their most important “What ifs,” and share them with me, so that we can do the math together. We also take a serious look at their long-term goals and objectives and create a strategic plan to work toward those.
Take a look at this video that shows you how getting a system for tracking your financials can also help with “what if” planning.
‘What-if’ analysis is all about forecasting whether your finances will match your possible future needs. If it doesn’t match, then we can play around with some “what if” numbers, like “what if I allocate more per month to my pension?” “What if I double up on my mortgage payments?” or “What if I cut my spending by 20%?” We can also look at asset reallocation scenarios. “What if I max out my 401K, and then put the remainder in a tax-free growth and tax-free withdrawal vehicle?” “How would that significantly impact my total income and my total taxes paid?”
Today’s sophisticated financial modelling allows you to explore all your ‘what ifs’; calculating the impact they are likely to have on your finances, both now and well into the future.
Imagine if you could examine potential decisions and cash flow plans in this way! My clients often tell me that they are now empowered by their finances, rather than intimidated. The clouds have lifted and they see how all the parts of their financial life could work together to support them for the rest of their lives. Planning gives them peace of mind and a strategic game plan.
Please contact me if you would like to set up a planning meeting so we can get started working on you “What ifs?” and your most important life goals.
Integrated Life and Financial Planning does not offer legal or tax advice. This material is not intended to replace the advice of a qualified tax advisor or attorney. Please consult legal or tax professionals for specific information regarding your individual situation.
No theory, strategy or Asset Allocation assures success or protects against loss. This material is for general information only and is not intended to provide specific advice or recommendations for any individual. To determine what appropriate for you, consult a qualified professional.