Four Phases of Your Financial Journey – Which one are you in?

Planning for the future doesn’t have to cause fear or anxiety.

But how much money should you save now to live comfortably in the future? 

In this episode, I dive into my tried-and-true framework called the “Four Phases of Your Financial Journey” to help you understand what financial decisions you can make now to better prepare for tomorrow.

I’ve used this framework successfully for years with my clients and I think it’ll work great for you, too. Also, I’m sharing the best savings advice I received ages ago from my own mother that still holds firm decades later and could be beneficial if put into practice today.

As you listen and review each phase of the Financial Journey Framework, notice which phase best applies to you.

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What’s included:  3 Steps to Planning an EPIC Retirement

Step 1:  How will You Spend Your Time?

Step 2:  Identify Your Income & Expenses

Step 3:  Putting it all Together

 

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Connect with Danette Lowe, CFP^®

https://linktr.ee/trunorthwealth

Visit Our Website:  https://www.TruNorthWealth.com

 

Episode Summary:

Phase 1-Savvy Savers: Main areas of focus are generally building up your 401(k), college savings accounts if you have children, purchasing a new home, or upgrading if you’ve outgrown your current home, investing in term life insurance, or prepping to help aging parents. You are more aware of how you’re spending your time and money and saving is a priority.

Phase 2-Ready to Retire: Focus shifts to transitioning from being a saver to spending the money you’ve saved, while also considering if you have enough money saved to spend at all. Most people in this phase have a date of retirement in mind, are tired of the corporate life, have hobbies and interests they want to explore and places they want to travel.

This group, commonly known as the sandwich generation, also faces more uncertainty since they’re trying to include both their own family and the needs of their older parents in financial planning.

Phase 3-Loving Legacy: The magical time when you get to plan how your wealth will support the people you love and the organizations you believe in. Retirement becomes your lifestyle, the money you have coming in exceeds the money you have going out, and you’re able to enjoy spending your time and money doing what you want to do.

You also make end-of-life plans, determine your trusts and beneficiaries, and perhaps name a successor trustee who can handle the responsibility of making sure your financial plans are followed.

Phase 4-Life Quake: This unpredictable phase can happen at any time in your life. Life Quakes occur suddenly and can last for an unknown amount of time, but usually don’t last forever. It’s important to remember to treat yourself with compassion if you’re in this phase, and take your time before making any major financial decisions.

My goal is to support you on your financial journey no matter what phase you’re in and hope you find this framework helpful.

 

In this episode, you’ll also hear:

•          What it means to be in the sandwich generation

•          Advice for working with a financial planner

•          Why compassion is important in times of uncertainty

 

 

Must-listen moments:

[00:13:05] My mom said we could spend half and we had to save half.  So when our piggy banks reached a certain level, say $10, we could go to the toy store…then I could spend $5 and she would put $5 in a passbook savings account.

[00:18:40] I recommend saving somewhere between 10 & 15% of your take home pay. If you’re not there yet, then just make a goal of spending a little bit less each month, and saving a little bit more each month.

[00:20:17]  The main characteristic of this time of your life is the uncertainty it brings up…this is the time where you begin to ask yourself, have I saved enough?  Can I retire and enjoy the same lifestyle that I have now?

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About Danette:  https://tinyurl.com/28pg94tt/

Professional Journey- As the President and a CERTIFIED FINANCIAL PLANNER™ professional at TruNorth Wealth Management, LLC, I've found my calling in helping pre-retirees confidently navigate the crucial decision of retirement. Our team is dedicated to guiding family-oriented couples from being net savers to net spenders.  We invite you to join our extended family and experience the TruNorth Wealth difference.

Danette Lowe, CFP^®

Founder – Wealth Advisor

TruNorth Wealth Management, LLC

1662 HWY 395 N, Suite 203, Minden, NV  89423

Connect with Danette @ https://linktr.ee/trunorthwealth

This podcast is for informational purposes only.  The situations used herein do not constitute a recommendation as to the suitability of any investment for any person or persons having circumstances similar to those portrayed, and a financial advisor should be consulted for your specific situation.  Neither Commonwealth Financial Network nor your representative provides tax advice.

Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser.