There are many reasons why you might feel financially stuck. Experiencing a major life change, like retirement, is a common one. The right financial advisor can help you get unstuck and live the life you want.
Key takeaways:
- If you’re transitioning into retirement, selling a business, or making a legacy plan, you may feel unsure about how to move forward.
- Clarifying your goals and working with an experienced financial advisor can help you chart a path that’s aligned with your values.
When I lost a dear friend recently, it got me thinking about my own life. My first thoughts were about the important milestones he’s not going to be here for—like his kids’ birthdays and weddings. I began reflecting on the time I have left and the things I’m doing with my business and family. The “rose, thorn, bud” thinking exercise can be useful in times like these. It asks you to look at your life and identify a:
- Past success (rose)
- Challenge you’ve overcome (thorn)
- New ideas that are percolating for your future (bud)
Thinking this way helps me get unstuck and moving in a more inspired direction. Below are common financial situations that might have you feeling stuck. Let’s talk about how to get over them so you can live the life you want.
1. Transitioning from Saving for Retirement to Spending Your Savings
Retirement is a major life change. After spending decades saving, it’s time to shift gears and begin drawing on your nest egg. This is an entirely new habit that can feel jarring for retirees. The right financial plan is one that allows you to maintain your lifestyle when you’re no longer working. But even with that plan, folks can still have a hard time making the transition. If that sounds familiar, know that you aren’t alone.
How to Get Unstuck
Meet with your financial advisor to review your long-term plan. At JJ Burns & Company, we use financial planning software to model out different scenarios. Seeing the numbers in black and white may help ease some of your fears. You can also review all of your retirement income sources and make a plan for drawing on them in the most tax-efficient way possible.
Your income may come from:
- Social Security
- Retirement accounts
- Brokerage accounts
- Permanent life insurance policies
- Annuities
- Pensions
- Any passive income streams you have in place
Putting it all together can allow you to live comfortably and have fun in retirement.
2. Selling a Business
If you’ve built a successful business, you may be playing with the idea of selling it. Depending on the situation, that could turn into a significant payday. Whether you’re retiring or looking to sell your business and move onto your next venture, you may feel stuck when it comes to your next move. That’s completely understandable. Being strategic about how you go forward can help maximize your returns.
How to Get Unstuck
Consulting with your financial advisor is the first step. They can take a close look at your business’s cash flow projections and balance sheet—and provide an accurate valuation. That’s a critical piece of the puzzle. From there, you can appropriately price your business. You’ll also want to time the sale to your advantage. Ideally, the business will be profitable and running efficiently before you make your exit. Making a strong succession plan can help prevent unwanted disruptions after you leave.
3. Leaving a Legacy You’re Proud of
Money can’t buy real happiness, but it can be a tool that allows us to live in a way that’s aligned with our values. It’s probably safe to assume that you want your wealth to make a positive impact. With proper planning, that can happen during your life and after you’re gone. You may feel stuck if you aren’t sure what to prioritize and don’t have clarity around your legacy plan.
How to Get Unstuck
Legacy planning should fit into your overarching financial plan and estate plan. If it’s been a while since you’ve updated your estate plan, now is the time to connect with your financial advisor, especially if you’ve experienced a major life change. That can include getting married or divorced, welcoming a child, or retiring. Buttoning up your estate plan can help increase the chances that your wealth will be passed on according to your wishes.
You can also think about how you may want to leave a legacy during your lifetime. That might include funding your grandchildren’s education or donating to organizations you care about. Take time to think about what matters most to you. Your financial advisor can help you make a plan to bring these goals to life.
Getting financially unstuck usually starts with understanding why you’re stuck in the first place. You can then lean on your financial team to find your way through it. Our advisors at JJ Burns & Company approach these things with the right mix of compassion and expertise. We’ve worked with many clients who’ve been in this situation, which means that we know how to help. We listen to our clients and understand where they’re coming from, then guide them in crafting personalized financial plans that center their values. Feel free to connect with us to figure out your next steps.
