When I recently lost a dear friend, it got me thinking about my own life. My first thoughts were about the important milestones he’s not going to be here for— his kids’ birthdays and weddings. I began reflecting on the time I had left and the things I was doing with my business and family.
The “rose, thorn, bud” thinking exercise can be useful in times like these. It asks you to look at your life and identify a past success (rose), a challenge you’ve overcome (thorn), and new ideas that are percolating for your future (bud). Thinking this way helps me get unstuck and move in a more inspired direction.
Here are some common financial situations that might have you feeling stuck and how to work through them so you can live the life you want.
Transitioning From Saving for Retirement to Spending Your Savings
Retirement is a major life change. After spending decades saving, it’s time to shift gears and begin drawing on your nest egg. This is an entirely new habit that can feel jarring for retirees. The right financial plan allows you to maintain your lifestyle when you’re no longer working. But even with that plan, folks can still have a hard time making the transition. If that sounds familiar, know that you aren’t alone.
- How to Get Unstuck
Meet with your CFP® professional to review your long-term plan. Seeing the numbers in black and white may help ease some of your fears. You can also review all your retirement income sources and make a plan for drawing on them in the most tax-efficient way possible. Putting it all together can allow you to live comfortably and have fun in retirement.
Selling a Business
If you’ve built a successful business, you may be playing with the idea of selling it. Depending on the situation, that could turn into a significant payday. Whether you’re retiring or looking to move on to your next venture, you may feel stuck when it comes to your next move. That’s completely understandable. Being strategic about how you go forward can help maximize your returns.
- How to Get Unstuck
Consulting with your financial advisor is the first step. They can take a close look at your business’s cash flow projections and balance sheet — and provide an accurate valuation. That’s a critical piece of the puzzle. From there, you can appropriately price your business. You’ll also want to time the sale to your advantage. Ideally, the business will be profitable and running efficiently before you make your exit. Developing a strong succession plan can help prevent unwanted disruptions after you leave.
Leaving a Legacy
Money can’t buy real happiness, but it can be a tool that allows us to live in a way that’s aligned with our values. It’s probably safe to assume that you want your wealth to make a positive impact. With proper planning, that can happen during your lifetime and after you’re gone. You may feel stuck if you aren’t sure what to prioritize and don’t have clarity around your legacy plan.
- How to Get Unstuck
Legacy planning should fit into your overarching financial plan and estate plan. If it’s been a while since you’ve updated your estate plan, now is the time, especially if you’ve experienced a major life change such as getting married or divorced, welcoming a child, or retiring. Buttoning up your estate plan can help ensure that your wealth will be passed on according to your wishes.
You can also think about how you may want to leave a legacy during your lifetime. That might include funding your grandchildren’s education or making charitable donations to organizations you care about. Take time to think about what matters most to you.
Getting financially unstuck usually starts with understanding where you are and where you want to go. With the right strategies and guidance, you can take control of your finances and align them with your goals. It’s all about making thoughtful decisions today to create the life you truly want.
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