Here is a story that reminds me of setting goals in the financial planning process.
I love games. They are by far my primary source of recreation. One day, my wife and I played Codenames at a party, and I was hooked. I asked my wife, “Did you have a good time?” And she said, “Yes.” I interpreted that to mean, “I like Codenames, and it is a fun game.” Later that week, I went to the store and bought 4 different versions of Codenames.
Then for the next few months, every time we had company, I suggested that we play Codenames. My wife always casually said, “Let’s find something else.”
After they gathered a thick coating of dust, I asked my wife, “Do you like Codenames?”
She said, “I like other games more,” which was her gentle way of saying, “No, I hate it.”
I kept one version in case a guest would eventually play with me and sold the rest to a second-hand store.
This is what often happens during the financial planning process. Married couples have different ideas about the future. One spouse might envision early retirement playing Codenames all day. For the other, it could be working into your golden years while riding speedboats off into the Disney World sunset.
There’s a joke among financial planners that our job is one part finance and two parts marriage counselor. It’s almost expected that married clients will fight about their goals. The CFP Board Book Financial Planning Competency Handbook has a chapter on “Marriage and Family Therapy Applications to Financial Planning.”
Individual clients cannot be fully understood without understanding the client’s environment and their relationships with family members.
Financial Planning Competency Handbook
Make sure you are working with a financial professional who takes the time to talk with you, understands the whole family’s needs, and plans based on everybody’s goals. My hasty decision only cost me about $120. Making a rash decision about budgets or major purchases could delay your retirement or make you outspend your assets.
Talk to your family members about your finances. Gain a shared vision for the future, and then take steps to meet your goal. Work with a professional who cares about your goals and incorporates them into your financial plan.