Life Planning


Life Planning
Gerald L. House MSM
“The Contrarian Investor”

As many of you know, I am not a fan of the term “retirement.”  However, this term still lingers throughout the financial service industry.  And, why not, financial advisors continue to promote financial planning using the old typical investment strategies because many people have succumbed to this thinking.  Nonetheless, a couple of new terms recently emerged challenging the way people structure their financial needs. 

Life Plans and Holistic Planning

Actually, “holistic planning” recently morphed into the new term “life plan.” This new term defines your life according to various stages and goals you defined. 

“Life planning is a guided process by which an individual takes stock of his or her life, clarifies goals and challenges, and identifies the steps needed to move forward. A life planning professional can help address relevant issues and find resources - people and information - needed for a successful transition”. (Life Planning Network, 2017)
 
The Team Approach

There are differences between life planning and retirement planning.  Life planning encompasses your whole being not just your financial needs.  It is a more realistic method of incorporating methods and strategies to meet your goals and needs.  Life planning involves several professional working together including financial advisors, investment advisors, attorneys, CPA’s, and other counselors. 

What is Financial Independence?

Let’s just be honest; most people want to live better than basic subsistence.  Basic subsistence means having the basics of food, clothing, and housing covered.  (In the Military we called it three hots and a cot!)  After all, nothing beats the comfort of knowing your basic needs are provided.  But, what about other comforts like eating out once in a while, vacation time, and the ability to purchase items to fulfill your want list? 

It may be easier to think of financial independence as the ability to cover two of the four bucket lists goals. (Needs, wants, likes, and wishes) Erin Botsford refers to these buckets as the house of security (Botsford, 2012)  http://botsfordfinancial.com/

You are not useless at age 65!

Have you watched the movie Logan’s Run?  In the movie people are living in a utopian society where everyone is young—no older than age 30.  When you reach your 30th birthday, you must go to the carousel for a re-birth.  They are just killing everyone on their 30th birthday.  Those who do not go to the carousel for the killing become runners whose objective is to reach the sanctuary where you can continue living. 

Remember this movie the next time a financial advisor tries to tell you how much money you need in retirement.  Sometimes I believe the government and financial service industry is in cahoots to control our lives.  No, I am not some doomsday paranoid psychopath.  But, why is age 65 deemed to be the magic number used for all the so-called retirement calculations? 

If you want to get freaked out; read Atlas Shrugged and then watch the movie Logan’s Run. 

Life after age 65

Unlike typical financial planning, life planning does not stop after you reach the infamous age of 65.  Some people may want to continue to contribute to society in some fashion beyond this magical age.  Most seniors may still enjoy their work and do not want to quit working once society tells them they should.  What a novel idea?  

If you want unbiased and a fresh look at planning, take a contrarian view and reward yourself with a new perspective.  Develop your life plan today.

As always, let me know if I can help.
Gerald


References

Botsford, E. (2012). The big retirement risk: running out of money before you run out of time. Austin, TX: Greenleaf Book Group Press.

What is Life Planning? (n.d.). Retrieved January 11, 2017, from http://www.lifeplanningnetwork.org/index.cfm?action=whatislifeplan.whatislifeplanning

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