CHOOSE ACTION OVER DISTRACTION
BY ROB WRUBEL, CFP®
The sprint to the end of the year started when we turned back our clocks in November, and it accelerates as we hit Thanksgiving and eat, drink, see family, and open presents before the big celebration on New Year's Eve. Once that first day of the new year date comes, we sit with a sigh, wondering how time moves so quickly.
This year, the noisy and contentious election occupied our brains with too many nights of concern and anxiety pulling us away from the focus we need to plan, enjoy our lives, and take action in areas of our lives we can impact.
It's easy to get distracted from the financial, legal and future planning work we know we need to do. As parents of family members with intellectual and developmental disabilities, we have a lot to do and this COVID-19 year has only increased the pulls on our time, our hearts, and our patience. My daughter attends school virtually and I try to work, prepare lunch, and monitor her ability to follow class all at the same time. Sometimes, it actually works. Other times, it's possible her classroom sees me switching hats from business casual to lunch-chef-Dad t-shirt.
Over the years, I've come to understand that most of what drives success in legal and financial planning has less to do with people having technical knowledge and more to do with their desire and ability to forge ahead even with the crazy, exciting lives we live. I've learned a few techniques that I hope will work for you. You can take steps in all of these before now and the end of the year.
FORGING AHEAD : FIVE STEPS TO TAKE BETWEEN NOW AND THE END OF THE YEAR
1. Find an hour to think Planning starts at that moment you decide to choose a future different than the life you lead today. Otherwise, it's living from minute to minute or event to event without a strategy or desire to achieve specific goals. Get out your planner or calendar and schedule a block of time to sit, think and write down the dreams you carry around in your head and the goals you have for you and each member of your family. Do this monthly, at least.
2. Engage competent professionals Not sure where to start? Cannot decide on what planning steps to take? Hire a financial planner or estate attorney to start you down the path. Most likely, you will need both. A planner can help map out a strategy and put an action plan in place to get out of
debt, build emergency funds and invest for the future. The attorney will help create estate documents with special needs trust provisions to care for your family upon your passing.
3. Automate savings Does your company offer a retirement plan? If so, review the percent you contribute to the plan and look to increase it by at least one percent per year until you reach a target level that gets you on track for a comfortable retirement. Do the same with an IRA or Roth IRA if you haven't already. It's crucial to put money away and invest for growth to achieve long-term goals. So many people don't start and lose years of potential growth. Commit to saving before the New Year comes around.
4. Review and reposition regularly When was the last time you reviewed your investment selections and your financial plan? About the same time that the wheel was invented? Life changes. Investment profiles change. Review your accounts to see if your selections from years ago continue to serve your family.
5. Perfect is the enemy of good Can't get started? Sometimes, people get overwhelmed and cannot make decisions. Other times, they are afraid of making mistakes. Both happen to everyone, even to those who seem to have it altogether. Almost every mistake can be fixed as you move through life — you can change beneficiaries in your estate plan and move money from one investment to another. Stumble forward and learn as you go.
There's no need to wait for the New Year to roll in to take action. Yes, this time of year is distracting. There are shopping specials from your favorite stores that pop into your email daily and new menu items to prepare. Enjoy all of that but don't let your pursuit of a good deal or finding a new way to tie a gift bow take you away from the actions needed to create financial freedom. Over time, financial stability and progress towards life goals will bring as much joy as that new sweater. Carve out some time this week to gain momentum going into the new year. •
ABOUT THE AUTHOR:
Rob Wrubel is a CFP who has a daughter with Down syndrome. He is recognized as a leading expert on financial planning for families with special needs members. Wrubel has written two books about financial planning and special needs families — Financial Freedom for Special Needs Families: 9 Building Blocks to Reduce Stress, Preserve Benefits, Create a Fulfilling Future and Protect Your Family: Life Insurance Basics For Special Needs Planning — and he has been published recently by Law360.com and The Good Men Project. Wrubel holds the Certified Financial Planning (CFP®) designation, the Accredited Investment Fiduciary® (AIF®) designation from Fi360, and the Accredited Estate Planner (AEP®) designation from the National Estate Planning Council.