You may feel you have your finances in order and then WHAM some big life event happens and throws you off course or you simply arrive at a feeling of financial doubt and disarray. It could be the result of an event like a job change, the emergence of an attractive opportunity, death, divorce, marriage, child on the way or just neglect.
Regardless of how it happens the feeling that your financial priorities are inverted and thoroughly scrambled can be very unsettling. This is life and as the bumper sticker declares “Sh*t Happens!”. It doesn’t matter who you are or how old you are. It happens to all of us from time to time. It’s about getting back up, dusting yourself off and getting back on track.
Over the years, I have had countless conversations with clients as a result of some unexpected occurrence and the process I walk them through seeks to get them back on their feet and back on track.
First, we take a moment to understand the details. We proceed to reassess the situation. What exactly happened? How significant is the impact? Where does this event leave us now?
The next step is the reset. This is where we look at the financial goals and obligations in detail and realign them to the current circumstances.
Lastly, we discuss various options available given the current situation to help get them and back on course.
Sometimes realignment, alteration, refinement, or even dismissal of the original financial goals may be necessary. Regardless the outcome, the process is still the same - reassess the current situation, reset the expectations and refocus to bring the plan back on track.
Employing the Reset (Effortlessly)
It’s not easy to hit the reset button. Over the years I have noticed that some of my clients have a degree of emotional detachment from their personal finances and investments which enables them to effortlessly employ their ‘reset’.
When they encounter a down market, they look at it as nothing more than a bump in the road. When they experience a life event that sets them back financially, they get right to the business of making appropriate arrangements, give thought to the urgency of the situation, move money if necessary in seeking to remedy the situation then they move on.
Course Correction
Whether it’s time management or financial management, I don’t think any of us ever reach a point where we feel we have it perfected. It’s a constant balancing act. However, when life presents an event that seems to obliterate our plans it’s important to look at the idea of using a “reset” to work toward getting back on track.
I'm always reluctant to use worn out cliches. So, asking your forgiveness, please allow me to refer to one that has stuck in my head for years. 2500 years ago, Greek Philosopher Heraclitus of Ephesus was credited with reminding us that "the only thing that is constant is change". The variation that sticks with me:
Make friends with change.
It's the only thing you can count on.
Keep your reset button nearby, you’re going to need it. If I can assist you with a ‘reset’ just let me know.
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Bruce Kramer is a Financial Advisor with LPL Financial and has been helping clients in that capacity for 35 years. If you would like contact him with questions or comments he can be reached via email bruce.kramer@lpl.com or through his website at: rbrucekramer.com
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Investing involves risk including loss of principal. Securities offered through LPL Financial, Member FINRA/SIPC.