Published by Ryan Cooley
In today’s world, we are often reminded to strive for a balanced life. Doctors encourage us to eat a balanced diet. My mechanic recently balanced the new set of tires I purchased to make sure they wear evenly. I even coach my son’s baseball team on the importance of having proper balance while they are batting to harness the most power. One thing I do not hear discussed as frequently is maintaining proper balance with finances.
Being a financial advisor has taught me that just as the tight rope walker needs balance, we too need balance in our investments and our overall approach to money if we want to succeed.
How one approaches cash flow is first in establishing balance. Growing up, I was always taught to save as much as possible, forgoing any indulgences or luxuries. I quickly learned this is a boring way to live. However, spending everything you earn on instant gratification will leave you unprepared for retirement and your short-term financial goals. So, how do we find the balance between enjoying our resources now and saving for the future? Understanding the right amount to save while still maintaining your standard of living comes down to planning. A balanced financial plan can help you work towards the retirement you desire while giving you the confidence to live your best life in the present. By starting with a comprehensive plan, you will know exactly how much to put towards the future and how much you can spend on a dream vacation or a new car.
The next piece of this balancing act is a sound investment strategy. A comprehensive financial plan helps you know how much risk you should take on so that you are able to pursue your investment goals. Interested in learning about your risk level? Click here to take our Risk Tolerance assessment. While taking on a lot of risk with your investments gives you the potential for a big reward, it can also lead to big losses. On the other hand, taking on no risk might prevent you from big losses, but it can actually have a negative effect, as well. Putting your money under a mattress can leave your savings susceptible to losing value due to inflation. So, how much risk should you take on? The answer again is somewhere in the middle. By helping you obtain an appropriate level through in depth planning and a thorough understanding of your risk tolerance, we find out exactly what investment strategy is appropriate for your individual situation. Having your investment strategy work in conjunction with your plan helps us achieve balance.
At Jacob William Advisory we believe in “Wealth Designed, Life Defined.” This means helping clients approach their planning and investments to establish balance in their finances and, ultimately, their lives. The result is fewer sleepless nights and greater confidence to live the life you desire.