Skip to main content

Tag: Goals

Beyond Resolutions: 10 Core Truths for the New Year

In 2019, I grew disillusioned with New Year’s resolutions. I can be somewhat of a perfectionist, and if things didn’t get off to a great start, I found myself floundering.  I tended to have an “all or nothing” mentality.  If it couldn’t be perfect, was it even worth still pursuing? At the time, I didn’t think it was.  I had been setting resolutions for years and then throwing in the towel quickly once the new year started.  This also didn’t sit well with me as I had been taught early on to be tenacious and not give up easily. While I don’t remember all the details of 2019, I remember the frustration. I remember thinking that there had to be a better way to set goals and to dream big.  I needed a different approach.  Thankfully, I was listening to a podcast when they were raving about a product called PowerSheets® Goal Planner from a company called Cultivate What Matters.  I was immediately enthralled as they talked about starting small, making progress, and that small steps matter.  Not only did it seem doable, but it was a refreshing way to think about how to achieve the things that were important to me. Ironically, my first year of PowerSheets® was 2020. You can imagine how that year went! While the year and the goals went off the rails quickly, the 90-day refresh gave me a new opportunity to revisit what was important to me within the year.  Admittedly, I didn’t complete the full year, but I fell in love with the process and have been doing them every year since.

One of the best parts of using the PowerSheets® Goal Planner is that each month has its own recap space for you to jot down various things such as what’s working and what’s not. It also has space for things you are grateful for as well as your favorite memories. Then as you finish the year, you do a full year in a review and reflect on these topics. I love using the week between Christmas and New Year’s to reflect and do all the prep work. I find this week to be weirdly quiet and reflective.  I lose track of the days, and anything feels acceptable.  It’s an oddly productive week even if what I’m doing seems absurd and unnecessary (think organizing spices in alphabetical order).

This year, the week between Christmas and New Year’s took on a whole new vibe. We were coming fresh off a remodel (I’m talking furniture being delivered the Thursday before Christmas fresh here).  It was a level of calm I desperately needed after a wild finish to 2023. I couldn’t wait to grab my 2024 PowerSheets® (not sponsored by them I promise) so that I could dive in to reflecting and cultivating a new year.  Reflecting on 2023 brought some big emotions, and I was grateful for the space to process them.  In many ways it was a wonderful year! We took some great trips with friends, spent time with family, survived a remodel and perhaps some of the coolest news – we’re going to be first time grandparents!  Yet at the same time, the year was incredibly tough.  A dear friend was losing their battle with cancer. I received a new health diagnosis which meant having to prioritize my health like never before. It was a beautiful and messy year which is a perfect reflection of what life really is.

After reflecting and wrapping up my 2023 PowerSheet® Goal Planner work, I was ready to dive in to 2024.  It’s a fresh start. A time to dream big or think small. There is no right or wrong. 2024 will bring some amazing things – a new granddaughter, an amazing family river cruise, milestone birthdays for family and friends, and more.  Despite all these amazing things, I was still carrying this sense of dread, and I didn’t know why. My first moment of delight came as I discovered the new prep pages that the Cultivate What Matters team had created for this year’s PowerSheets®.  They switch it up every year, and this year had some of the classic work I love and some new fun touches.  Each year offers inspiring words and wisdom, and this year was no different. I found myself being drawn to the “Core Truths” highlighted throughout the prep pages.  Little by little, I felt the joy creeping in and the inspiration pouring out.  Each core truth hit home and had me considering 2024 in a new way. They were so inspiring I wanted to share them with you as well. No matter the season you find yourself in this year, these 10 core truths may help you cultivate new dreams or tend to existing ones in new ways.

Core Truth #1: Naming What Matters Changes Everything

Naming what matters helps us gain clarity. Life is demanding. So much is demanding our attention or at least vying for it. We’re bombarded with emails, texts and social media posts every day.  It’s easy to lose sight of what’s most important to us, even when it’s right in front of our face. It’s why we love having clients tell us their goals – their needs, wants and wishes.  It’s what matters to you, and our job is to collaborate on a plan to get you there. What is important to you this year? What do you believe will be important to you in 5 years? 10 years? Sometimes we get so caught up planning for the future that we forget what’s important to us right now.  Finding balance is important. One of the most powerful exercises I’ve done is to think about the end of my life. What would have really mattered? It’s not going to be the time I spend on social media or how much I worried.  It won’t be how much money I made either.  What would really matter to me at the end of my life would be how I treated people, the time I spent with loved ones, the friendships I made and the experiences I had. What will matter to you?

Core Truth #2: Reflection Reaps Rewards

It’s easy to get lost when we only focus on where we want to go. There is a time and a place to leave the past behind, but there is also a time and place to reflect.  Looking back and reflecting helps us to remember what is and isn’t working for us in this season.  It also gives us an opportunity to truly see the progress that was made along the way. What were the good things you experienced in 2023? What do you want more of in 2024? What lessons were learned that we can carry with us? This is your life, and it isn’t pass or fail.  This is the reason we adjust your financial plan on a regular basis.

Core Truth #3: Goals Grow When We Pursue Progress, Not Perfection

Take it from me and leave trying to be perfect behind.  Perfect isn’t realistic.  Perfection seems more fleeting the tighter we hold onto it.  Progress is refreshing and rewarding. Taking an inventory of our goals and how we’re doing gives us a great starting point for how to move forward in the new year.  You can segment your life in a variety of ways and do a life inventory as well.  How is your health? How is your family? What is your work life like these days? How are your daily finances going? If you had to rate yourself in these areas, how would you be doing? Are there areas that need more attention than others? Last year was a great year for me in several areas of my life.  I’m carrying that into 2024, which gives me the capacity to focus on other areas that need more tending such as my health.  

Core Truth #4: Change is Possible

Mindset is everything.  Have you ever thought that a goal or a dream was impossible? Have you been disappointed time and time again, so you gave up? I have. It was easier to give up than to be disappointed again.  Believing again meant a change in my mindset.  I had to be honest with myself about what was holding me back.  Sometimes I was my own worst enemy and holding myself back.  Imposter Syndrome can creep in. We can believe that we aren’t enough. Adopting a growth mindset can remind us of who we really are and inspire us to get going again. Are there things you continue to do because you feel they are expected of you? Is there a change you are dreaming of making this year? Let’s talk about it and make a plan this year to do something different.

Core Truth #5: Little By Little Adds Up

This is my life motto right now! I have a rigorous physical therapy regiment ahead of me this year to get back to doing the things I love. When I think about what’s ahead of me it’s easy to get overwhelmed.  Thankfully, I have an amazing care team that reminds me to take things one day at a time.  I have two choices, go slow and small or not go at all. This is a major departure from the “go big or go home” mantra that I can tend to adopt. When I look back at the end of 2024, I want to be proud of all the baby steps I took towards the bigger goal.  Have you ever felt the same? It’s okay to take some time to celebrate all the little things you are doing – in fact we encourage it! Celebrate the contributions you are making to your retirement plan each pay period. Celebrate your savings account for your big dream growing.  Celebrate the steps you have taken to leaving a legacy. Remember that it was the slow and steady tortoise that won the race, not the fast and impatient hare.

Core Truth #6: Legacies Start with One Small Seed

Everything and everyone started somewhere. Getting started can be the hardest part. Making a list of steps can be incredibly helpful. It can provide clarity on the best place to start. We often talk about legacy at CapSouth, and it’s so much more than a financial legacy. What traditions do you want your family to continue? How do you want to be remembered? It can be multifaceted just like you. For me, one key area that stood out last year is how much I love mentoring and paving the way for the next generation of Advisors at CapSouth.  I absolutely love the thought of a new generation of Advisors continuing the work that was begun over 20 years ago with an entire new generation of clients that includes children and grandchildren of current clients.  I can plant small seeds along the way to this bigger dream. Each small action will add up to a lasting legacy.  What is one small seed you can plant this year for your legacy journey?

Core Truth #7: To Everything There Is a Season

If I’m being honest, it already feels like 2024 has shot me out of a cannon! I was thinking I would have a leisurely start to the year, but that hasn’t been the case.  It would be easy for me to fall back into old patterns where I start trying to do everything at once if I hadn’t been so diligent about planning out my seasons this year.  I must be realistic about what I can accomplish on any given day. I’m not Super Woman even though some days I tried to act like I was! For now, let’s just focus on the first three months of the year. What’s important in this season? Is there one thing you could start, or is there one thing you need to continue this season? Are your goals realistic in this season? Do you have the resources (time, money, support) to achieve them or make progress?  These are the conversations where collaboration can be helpful. You don’t have to make all these decisions on your own, and we would love to be a part of the story.

Core Truth #8: We Can’t Do It All and Do It All Well, But We Can Choose to Cultivate What Matters

Let’s go back to that thought of being Super Woman. It took me a long time to realize I couldn’t try to do everything at once without something suffering.   These days I’ve learned to say no to some things so that I can say yes to the things that I’ve prioritized in this season.  I never thought of myself as a people pleaser but saying no didn’t come easy.  I worried about how the “no” would be received.  Eventually, I had to accept that I just didn’t have the capacity to give everything my best all at once.  It didn’t mean I didn’t want to try. The more transparent I was with those in my life I had to say no to, the freer I felt to continue to say no.  Do you feel pulled in a million directions right now? Is there something you need to say no to so that you can prioritize something more important?  

Core Truth #9: Any Day Can Be a Fresh Start

There is nothing magical about January 1. Please read that again.  As a recovering perfectionist, I now relish that every day I wake up can be a fresh start. We don’t have to wait a full year to start again.  We can choose to start on a random Monday or the first day of the next month.  That’s the beautiful part – you get to choose your fresh start.  It’s easy to keep procrastinating and waiting for the perfect time. I’m not sure the perfect time exists. We don’t have to blow up our day, week, month, or year because of a bad moment.  

Core Truth #10: It’s Okay to Grow Slow

We live in a world full of instant gratification. Amazon can have groceries and many unnecessary but wanted items to my house in just hours now.  I can pay for something with a tap of a card or a click of my iPhone’s side button.  Going slow can feel painful and unfulfilling in this kind of world. It can make us feel that we’re not making progress which can lead to giving up or moving on from a goal we had.  We don’t have to always feel as if we are racing through life.  While you don’t need it from me, I’m giving you full permission to grow slow.  We can chart your progress each year and celebrate along the way.  If you are used to sprinting your way through life, you may even appreciate a change of pace.

By the time I finished my 2024 prep work and incorporating these ten core truths into my year, I had seven goals for the year that I will devote time to little by little each month (Feel free to email me at jfensley@capsouthpartners.com and I will happily share those with you if you are curious). For those of you that love choosing a “Word of the Year”, my word for this year is intentional.  It felt appropriate as each goal I chose will require me to be intentional (almost daily).  We at CapSouth have the amazing privilege of doing life with you because of a choice you made to put your trust in us.  We are all so much more than the money in our Charles Schwab accounts, and it is my sincere hope for all of us that 2024 is a year where we can soak in these 10 core truths to remember to enjoy this beautiful and messy journey we’re on. 

To learn more about CapSouth and how we help, visit our website at https://capsouthwm.com/what-we-do/

CapSouth Partners, Inc, dba CapSouth Wealth Management, is an independent registered Investment Advisory firm. CapSouth does not offer tax, accounting or legal advice. Consult your tax or legal advisors for all issues that may have tax or legal consequences. This information has been prepared solely for informational purposes, is general in nature and is not intended as specific advice. This article contains external links to third party content (content hosted on sites unaffiliated with CapSouth). CapSouth makes no representations whatsoever regarding any third party content/sites that may be accessible directly or indirectly from this article. Linking to these third party sites in no way implies an endorsement or affiliation of any kind between CapSouth and any third party, including legal authorization to use any trademark, trade name, logo, or copyrighted materials belonging to a third party entity.

Sources: www.cultivatewhatmatters.com

Cultivate What Matters 2024 Powersheets® Goal Planner

Retirement Planning: Before and After

Working with clients, I often find that retirement planning can be an ambiguous idea for many, with numerous factors and circumstances to consider, when many of us are just trying to get through the next year…or even the next week!  We plan for retirement because we know that we likely do not want to have to work forever, and we know that there are steps we should be taking now when time is on our side to ready ourselves for that freedom of “making work optional”. 

Once clients reach retirement, there is still often a significant change of thought process.  I often get questions from clients… “What do we do now?  How do we convert our accumulated assets into monthly spendable income? 

With your input, we endeavor to devise a plan that puts you on the road to financial security.  The result is designed to leave you with sufficient assets so you can maintain your desired lifestyle or pursue new interests that you may develop in retirement.

We can help you with the numbers.  But first, let’s ask some basic open-ended questions.

  • What are your values?
  • How do you feel about money?
  • What goals do you have for retirement?
  • When would you like to retire?  Full retirement or change of employment with reduced income for a time?
  • What would you like to do in retirement?
  • How would you spend your days?
  • Do you enjoy traveling?
  • What are your hobbies?
  • Do you want to stay in your home or are you considering a smaller place?
  • Would you like to live in a different location?
  • Would you move closer to family or kids?
  • Or would you choose a location based on climate or quality of life?

Your goals are your goals.  They are not mine.  They are not your family members’ goals, and they are not your friends’ goals.  Your personal values and goals play a big role in your retirement planning picture.

BEFORE RETIREMENT (Already retired?  You can skip ahead or read anyway and tell your friends!)

Retirement sounds great, but can’t we balance those savings with enjoying today as well?  Yes, and we should!  Here are some general retirement planning guidelines:

  1. Set aside six months of expenses in an emergency fund. While skyrocketing interest rates have hampered stock market performance over the last year, savers can currently earn 5% or more risk-free. We’d be happy to point you in the right direction.
  2. Save up to 15% of your income in your company’s 401k. If zero to 15 in one paycheck leaves you short of breath, start small and ratchet it up over time.  You won’t miss the cash. But if it turns out that 15% is too difficult or interferes with other financial goals, at least always capture your company’s match.  It’s free money!  Why leave any behind?
  3. Build a “Life Account”. Make sure your savings are not solely in your retirement account.  “Life” will likely happen prior to you reaching age 59 ½.  Build a comfortable level of funds in a taxable investment account that you can access without tax penalties when needed prior to retirement age.
  4. Get out of debt. This includes student loans, credit cards, and auto debt.  We can talk about whether you should try to pay down your mortgage in a timelier manner…it depends.
  5. Max out IRA/Roth IRA and HSA. Consider fully funding an IRA or Roth IRA account and max out your health savings account if it’s offered as a part of your health coverage.
  6. Are you 50 or older? If so, consider catch-up contributions for retirement savings.  For an IRA, you may contribute up to $7,500 in tax year 2023. The 401(k) contribution limit for 2023 is $22,500 for employees.  If you’re 50 or older, you’re eligible for an additional $7,500 in catch-up contributions.
  7. Diversify within asset classes and among asset classes. When you are young, a diversified portfolio that leans heavily on the equity side of the allocation is probably your best choice.  Dollar-cost averaging through regular contributions allows you to take advantage of market dips. As you near retirement, you will likely want to gradually reduce risk by shifting to fixed income investments and reducing your exposure to stocks.
  8. Leave room for fun. It is certainly important to set goals and to make a plan to achieve those goals.  It is also important to live a little!  Saving everything and living on sardines alone is not fun for most of us.  Retirement planning allows us to put our savings into perspective and to know where we want to go and what it will take to get there.  Once we have that picture, we can evaluate the tradeoffs of saving more and retiring earlier or spending more in retirement, or retiring later and being able to spend more either now or in retirement.  I believe there can be freedom in a healthy balance between saving for the future and enjoying life now.  It really is all about a personal plan to challenge you to define and to live your One Best Financial Life®.

AFTER RETIREMENT

Our retirement planning work is not done just because we reached that long-awaited goal of retirement!  The direction of our work and our questions pivot to maximizing this period of your life. 

There are many factors that can derail your retirement picture – investment risk, inflation risk, catastrophic illness, long-term care, and taxes to name some.  A comprehensive retirement planning process should account for stress testing these obstacles to provide confidence in the probability of your success under these scenarios. 

Below are some general concepts to evaluate during this period of life:

  1. Think of retirement in phases. Our ability to enjoy our retirement years often wanes over time due to our health.  This is sometimes referred to as your go-go years, your slow-go years, and your no-go years.  You may decide that you want to continue to work part-time in the early years of retirement.  You may want a larger travel budget that reduces over time.
  2. Increase your reserve fund. While six months’ expenses may be an adequate emergency fund during working years, you may want to extend that to a year’s worth of expenses during retirement.  This comfort level is certainly different for each client, however the objective is to not have to liquidate funds in a down market.  This consideration will also factor into recommendations of investment allocations across various accounts or “buckets” of money.
  3. Systematize and Keep It Simple. We generally recommend evaluating your regular living expenses and your current income sources, and then setting up an automatic, once per month transfer from an investment account to your checking account for the difference.  For you, there is still a systematic income each month that resembles the paycheck you received prior to retirement.  Your overall investment allocation can be set up so that the account those transfers are coming from is invested with about a year’s worth of funds at a conservative risk level.  This account is then replenished periodically from other accounts based on market conditions and tax strategies.  The goal is for you to be able to enjoy life, and for us to manage that income flow for you.
  4. Consider Social Security carefully. Various timing strategies are available for claiming Social Security benefits.  Many times clients are eager to begin drawing their benefits as soon as they can – after all, they have been paying into them for years.  However, claiming early can have significant impacts on your total benefit.  Though you can begin drawing at age 62, you will receive a reduction of 5/9th of one percent for each month you draw earlier than your full retirement age (FRA) up to 36 months, and 5/12th of one percent for each month thereafter.  For example, drawing at age 62 when your FRA is age 67 will result in about a 30% reduction in your benefit. Delaying Social Security after your FRA has benefits worth considering.  You receive a guaranteed 8% increase for each year you defer your benefit from your FRA to your age 70.  This is in addition to any cost of living adjustment. For married couples, the timing of Social Security claiming is of particular importance for the spouse with the higher benefit amount.  After the death of the first spouse, the surviving spouse will get the higher of the two benefits.  The lower benefit amount will then cease. It is also of note that a divorced individual who was married to their previous spouse for more than ten years has the right to claim on the former spouse’s benefit without affecting the former spouse’s personal benefit. When should you file?  The answer will depend on your specific circumstances and the greater context of your financial plan, including the consideration of your health and family longevity.  A greater Social Security benefit is helpful if you or your spouse are alive to receive it.
  5. Don’t Forget Taxes. Tax planning is arguably more important than ever in retirement.  The timing and order of withdrawals from various types of accounts can have significant tax consequences – negative and positive. For clients with no concern over beneficiaries, maybe withdrawing from taxable accounts first, then tax-deferred, and finally tax-free accounts is best.  However, even in this example, consideration should be given to current and future tax rates and brackets, and the impact of Medicare IRMAA charges and Social Security taxation on a surviving spouse. Clients who expect to leave funds to their children or other heirs should add particular consideration to substantially appreciated assets that might be better held and passed at death to obtain the step-up in basis for the heirs. Roth conversions can be utilized to take advantage of lower income years or lower tax rates, moving assets from tax-deferred to tax-free growth going forward. Charitable goals can increase the benefit of sound charitable planning.  Utilization of batched giving, a donor advised fund, or maintaining tax deferred funds for future qualified charitable distributions after age 70 ½ are some valuable strategies that may apply.
  6. Remember that your plan knows about those dollars, too. Clients sometimes mention spending accumulated funds held in outside accounts on splurge purchases with a comment like, “But those were from my funds in my other account.”  Or, “those funds came from the sale of that investment property I had”.  It is very important to remember that your plan has likely accounted for those funds, too. 

When building a client’s plan, we discuss various resources including retirement accounts, pension incomes, rental property, private investments, etc.  Sometimes those income sources are for limited periods, or they might come in as a one-time future infusion of income.  Your plan factors these income sources in, as well as the growth on those assets once received, to fund your current and future retirement goals. 

Inflation can have a significant impact on your retirement expenses over time.  The longer a retirement period, the greater the impact.  By the time that the long-term care need occurs, the cost will likely be much greater than you might think.  The cost of your current lifestyle will likely cost substantially more twenty years from now.  Funding those future goals generally requires growth of your assets over time. 

It is easy to think of your current expenses and to get too comfortable with those being covered by part-time income, short-term or level pension amounts, etc.  It is important, though, to have a comprehensive retirement plan that keeps everything in perspective and to remember that your plan is counting on those excess funds received to be invested in accordance with long-term investment allocation.

There are no easy roads, but a disciplined approach to retirement planning that emphasizes consistent savings, a modest lifestyle based on your income, and minimal debt should serve you well as you travel the road toward financial security and retirement.  A sound financial plan also provides freedom.  Once you know you have your bases covered for retirement, you can feel more free to enjoy life now as well.

If you have questions about any of these concepts or how they might apply to your situation, please reach out to me or your CapSouth advisor.

To learn more about CapSouth Wealth Management visit our website at https://capsouthwm.com/what-we-do/or Connect With Us to learn more about our process.

By: Scott F. McDowall, CFP®

CapSouth Partners, Inc, dba CapSouth Wealth Management, is an independent registered Investment Advisory firm. This material is from an unaffiliated, third-party and is used by permission. Any opinions expressed in the material are those of the author and/or contributors to the material; they are not necessarily the opinions of CapSouth. Information provided by sources deemed to be reliable. CapSouth does not guarantee the accuracy or completeness of the information. CapSouth does not offer tax, accounting or legal advice. Consult your tax or legal advisors for all issues that may have tax or legal consequences. This information has been prepared solely for informational purposes, is general in nature and is not intended as specific advice. Any performance data quoted represents past performance; past performance is no guarantee of future results.

Exercise Financial Muscles to Get Financially Fit

“Those who work their land will have abundant food, but those who chase fantasies have no sense.” This ancient advice from Proverbs illustrates the importance of financial fitness.

What is financial fitness? Well, we are all familiar with the term physical fitness. If pressed for a definition, we might define it in terms of our own ideas and circumstances.

When it comes to an explanation of financial fitness, the same applies. A lot may simply depend on the season you are in. Financial fitness might mean something different to someone who is single versus a couple with young kids, an empty-nester or a retiree. Even within those demographics, one’s perception could be colored by personal circumstances. Are you saddled with debt, debt-free, renting or a homeowner?

There are many ways to get ahold of your finances; you can increase earnings, lower spending, start saving more (short-term and longer-term) and implement debt management. For many, earnings are difficult to influence in the short-term.  For most, tackling the spending side of the equation will yield the quickest results. Below we consider six principles that will help you get into financially fit shape wherever you find yourself in life.

6 principles for financial fitness

 “An investment in knowledge pays the best interest.”—Benjamin Franklin

  1. Set goals. If you don’t have concrete financial goals, both shorter term and longer term, reaching some level of financial fitness becomes much more problematic. Simply put – you don’t have a destination. You are financially adrift. As George Harrison has noted, “If you don’t know where you’re going, any road will take you there.”

Short-term goals you might consider: Establishing three to six months of cash in an emergency fund, saving for a down payment on a home or auto, or saving for a vacation.

Long-term goals you might consider: College savings for your kids or saving 10-15% of your income for retirement.

  • Do you know what ‘buckets’ your income lands in? How do you spend your income? If you aren’t tracking expenditures, you won’t have a holistic picture.

You might be surprised at how much you spend on eating out, on entertainment, and even on a daily habit of barista-prepared lattes.Unnecessary spending can be diverted into savings or paying off debt, especially high interest rate credit cards. Make timely payments. This will not only prevent you from accruing needless fees, but it will raise your credit score.

Once credit cards are paid off, channel the excess funds into savings. When you accomplish shorter-term goals, reward yourself. It need not be extravagant, but accomplishments should be celebrated.

Finally, you will struggle to follow a plan that is too draconian. Trim frivolous spending but leave some room for fun and hobbies.

  • Your lifestyle shouldn’t exceed your income. If it does, you are burning through savings or taking on debt, and your stress level will likely reflect it.

Excessive spending is not a path that leads to financial fitness. You want financial space in your life. You want ‘money at the end of the month,’ not ‘month at the end of your money.’ A budget is your blueprint that helps achieve this goal.

  • Invest wisely. Among various factors, your financial goals, both shorter and longer term, will greatly influence the proper mix of investments. A diversified portfolio that crosses the spectrum can reduce risk and enhance your return over the long run.

“Don’t look for the needle in the haystack. Just buy the haystack!” advises John Bogle, founder of Vanguard. In other words, diversify!

We are here to assist you with that. Our recommendations are tailored to your financial goals and your unique circumstances.

We avoid get-rich-quick schemes, which are usually nothing more than schemes minus the riches. Accumulation of wealth over a longer period is our goal. We believe it should be yours, too.

“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.” says Paul Samuelson, the first American to win the Nobel prize in economics.

  • Enjoy your retirement. Many enter retirement after accumulating wealth over decades. They have learned how to save. For some, suddenly relying on that savings rather than earning income from labor seems like a daunting leap, one they may be ill-prepared to make. It doesn’t have to be that way.

Your financial plan continues to be a valuable resource in retirement.  Your level of spending in retirement, both regular expenses and those planned extras along the way, along with how much risk you should be taking, when and how to draw Social Security and other sources of income…these factors and more should be considered within a sound financial plan. 

Clients are often surprised when we encourage them to spend more money.  As you work to identify your values and what is important to you, we want to see you realize those dreams and enjoy your life to the best of your ability.  Your plan serves as an outline that arms you with knowledge of necessary guardrails and enhances your financial fitness.

  • Protect your assets. Do you have life insurance, health insurance, and personal liability insurance? Do you have a will and estate plan? Who are your beneficiaries? What happens if you become disabled? Do you have a trusted advisor to handle your affairs? What about a back-up?

If you own your home without a mortgage, do you have homeowners’ insurance? Surprise, not all do. If you rent, renters’ insurance is cheap. It’s a must-have item in our opinion.

Absorbing the fundamentals—the foundation for success

Those who fail to put sound principles into practice are like those who build their homes on sand. The rains come and the winds blow, and financial misfortune overtakes them.

Wisdom encourages us to build our homes on a solid financial foundation. Though the rains come and the winds blow (and they will), the house and foundation are designed to withstand financial storms. In the words of Maren Morris, “If the bones are good, the rest don’t matter!”

Every situation is unique. You may have mastered the fundamentals, and only need to apply the principles we highlighted selectively, plugging small holes and shoring up your finances. Or a more aggressive approach might be in order. Focus on one theme at a time. Some may apply. Others may not.

Having said all that, we never want to give the impression that you are all alone on a financial lifeboat. We are always here to assist.

To learn more about CapSouth Wealth Management and the services we offer, visit our website at www.capsouthwm.com or capsouthwm.com/what-we-do/

By:  Scott F. McDowall, CFP® | Wealth Advisor

CapSouth Partners, Inc, dba CapSouth Wealth Management, is an independent registered Investment Advisory firm. Information provided by sources deemed to be reliable. CapSouth does not guarantee the accuracy or completeness of the information. CapSouth does not offer tax, accounting or legal advice. Consult your tax or legal advisors for all issues that may have tax or legal consequences. This information has been prepared solely for informational purposes, is general in nature and is not intended as specific advice. Any performance data quoted represents past performance; past performance is no guarantee of future results. This article contains external links to third party content (content hosted on sites unaffiliated with CapSouth). CapSouth makes no representations whatsoever regarding any third party content/sites that may be accessible directly or indirectly from this article. Linking to these third party sites in no way implies an endorsement or affiliation of any kind between CapSouth and any third party, including legal authorization to use any trademark, trade name, logo, or copyrighted materials belonging to either entity.

Help us keep you informed!

Let us do the work and keep you updated! Sign up for the CapSouth financial updates.

You have Successfully Subscribed!