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Critical Financial Events

June 13, 2018

The road to financial independence is fluid and dynamic.  As life unfolds, you inevitably face what we call Critical Financial Events. Some will be surprises, but many you can predict and prepare for.  This post outlines what they are and how we use them in our approach to reaching your work-optional lifestyle.

What They Are

Critical Financial Events (CFEs) are events that could potentially render a financial plan irrelevant.  These things can be good, bad, or neutral - some examples could be buying a vacation property, losing a spouse, or turning age 60. Think of them as financial planning pitfalls; if you weren’t looking down the road at what comes next, you could end up in a tight spot.  Having a plan is necessary, but continual planning is essential.  Our CFE Planning Process is designed to help keep them in view and cushion, prepare, prevent and sometimes even avoid these events.

Our Approach

CFEs do have some predictability.  For example, we know you will turn age 60, and we know you will be retiring or achieving that work-optional lifestyle. Many times, however, unexpected things can come up like divorce, the death of a spouse, or critical illness.  We consider these and all CFEs we've navigated with our clients and through our experience when designing a financial plan.  We don’t just prepare you for today, we prepare you for what’s to come.  As your life unfolds and your needs evolve, we continually adjust your plan to cushion the potential adverse effects of these events. 

Final Thoughts

You only get one chance at achieving some of life's biggest financial goals (retiring, building and leaving a family investment legacy, etc.) and attempting to do so with a plan that is static can leave you exposed and unprepared for the next season.  If you’re uncertain that your financial plan is panoramic and looking towards the future, reach out to us to schedule a sounding board session.  No decisions are made in these sessions.  They are just opportunities for you to meet us and discuss what your concerns are.  Reach out if we can help.

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