Why You Should Plan Now to Afford Your Dreams
by David White | Contributor
Not long ago, I had a client who sadly passed away just six months after retiring at the age of 65. His wife shared with me, “He always promised we would travel after he retired.” To this day, she has not had the chance to leave the country. Everyone has a unique “bucket list,” whether it’s constructing a vacation home by the lake or mountains for family gatherings, or embarking on a once-in-a-lifetime trip around the globe. Each person is striving to achieve their personal long-term aspirations.
As a wealth advisor, my responsibility is to help my clients increase their financial resources, but it goes beyond merely accumulating wealth. My aim is to assist them in realizing their dreams. It’s crucial for clients to integrate their desired trips or homes into their financial planning from the start. This should be an integral part of their strategy. As I assess your financial circumstances, I focus on long-term forecasts and determine, “Are you on track?” Consistently prioritizing those significant expenses within the financial framework is essential.
It is important to understand that you cannot reconcile past expenses after they’ve been incurred. Clients often face challenges when they fail to acknowledge their current financial circumstances. I’ve encountered clients making substantial purchases only to later seek my reassurance about their financial stability. Unfortunately, by then it may be too late.
It is always advisable to consult with a professional before making significant financial decisions to thoroughly evaluate the costs involved. A financial advisor can assist in understanding the long-term financial implications of large purchases and help project how these costs will impact future plans. I encourage clients to consider alternative possibilities (such as a condo versus a house) and to assess whether the advantages justify the expense. In addition, estate planning requires special attention, particularly regarding real estate. A “legacy property” might not necessarily be the inheritance that your children wish to manage. Clients need to consider the broader picture and plan ahead for future generations.
My wife and I are presently in the process of building a house in East Texas. We have had discussions with our daughters to gauge their interest in inheriting the property after we pass. I recommend that if a property will be handed down to the next generation, it should be held in trust, with clear provisions in the estate plan to facilitate ownership transfer to the children. It’s also wise to put mechanisms in place for one sibling to buy out the interests of others, for instance.
There’s a George Strait song that goes, “I ain’t never seen a hearse with a luggage rack.” These words resonate with me as I plan and relish traveling with my wife now. Each trip aims to leave us more relaxed, with cherished memories to last a lifetime.
Editor’s Note: David White is a wealth advisor and partner with SFMG Wealth Advisors, an independent wealth management firm. He brings over 30 years of expertise in comprehensive wealth management, investment strategies, retirement planning, and asset protection planning. You can contact him at sfmg.com or 972.960.6460
