“I’m no longer Brenda,” is what a client said to me last week.
She wasn’t referring to an identity change. She was referring to an imaginary character, Brenda, whose story we used in our retirement workshop. Brenda was a midlife woman with insufficient savings. Using various saving strategies and lifestyle modifications, we illustrated the different outcomes for her.
Such examples often shock audiences, because most people don’t understand how much capital is needed to fund even a modest retirement at the age they have in mind. Many have never considered what it will take to retire and maintain the lifestyles they currently lead.
Brenda's example shocked my client into action. She made an appointment for a personal financial plan shortly after that workshop and began working diligently towards it. Over the years, we have had to adjust her plan many times as her circumstances have changed, for better or worse.
It took time for results to become evident, but as she tasted the accomplishment of reaching her goals, she became increasingly committed to the plan.
However, Brenda also stirred a latent anxiety about money, the anxiety of ending poor and alone. It’s normal to have some form of money anxiety; it simply shows up in different ways. For her, it translated into working even harder in her business. No matter how hard she worked, it never seemed enough. She still felt like Brenda.
Although the financial plan and consistent progress towards her goals helped to manage the anxiety, she also needed a plan for the fear of “never enough”. I witnessed her determination to address that anxiety, too.
When she announced that she was no longer Brenda, it didn’t only mean she felt positive about her financial progress, but it also signalled that she no longer allowed anxiety to rule.
After three decades of helping people plan for retirement, I’ve seen many similar stories. I believe a financial plan and the journey with a financial planner have enormous financial benefits. But it’s more than that.
Even if a decent saving strategy is already in place, a timely intervention can help people understand whether it’s sufficient for the life they want to lead and aligned with their values. A plan, and the conversations that accompany it, can give people tools to communicate about money and improve their overall well-being.
Clarity alone has value. But the compounding effect of financial discipline, efficient tax structuring, and optimal portfolio allocation can have an astonishing impact over decades.
Approaching the stage of life where your main source of income becomes your savings always involves uncertainty, but it doesn’t have to be terrifying. You can arrive at that point with confidence and clarity.
If you are uncertain about your own savings strategy and ready to explore your options, join us for our free workshop.
You don’t have to be Brenda.
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Kind regards,
Sunél