Blog post #427
I took some time this week and wrote a list of items that I called “2020s…Hopes and Thoughts.”
The idea to do this came from a set of lists I saw on Twitter around New Years, where many financial people that I follow posted lists of things they had accomplished or how their life had changed from 2010 to 2020.
I took that idea and wrote a list of things that I want to occur in the next decade, from now to 2030.
As I was sending this list to my executive coach for our monthly call, I realized that I had made a mistake.
The mistake was not in my list. The mistake was what I called my list.
The mistake was the title. I should not have called the list “Hopes and Thoughts.” I should have called it “Plans and Thoughts.”
There is a big difference between “hopes” and “plans.” In reality, most of the things that I wrote are items that I can control, at least to some degree, so I can take future actions and plan to make it much more likely for each item to occur.
This is really a list of plans or goals, of what I want to do or accomplish, of what may happen if I do certain things and be pro-active.
This is not really a list of hopes. Hope does not imply planning or that I have any control about the outcome.
Hope means that you want and desire something to happen in the future. But hope, on its own, implies that you cannot influence the outcome.
I want to be financially secure. I want to travel extensively. Both of these are hopes, but I have a significant ability to ensure that both will be a reality. If I want to visit NewYork annually and go to London and Paris in the future, planning and thinking about this now, and again in the future, make it much more likely for these to occur.
While I cannot control how the stock market will do in the short term, which has a direct impact on my financial security, I am confident that in the long run, if I continue to save on a regular basis, that I will be financially secure.
One of the major changes for our firm this year, later this spring, will be the introduction of new comprehensive financial planning software, that will make planning, goal setting and then tracking each of our clients’ progress more of a reality. We want to do more to make your plans, as well as your hopes, something that together you will have a greater sense of control over.
One of the items on my list was to ensure that my wife and children are properly taken care of, if I die, as well as bequests to charities that are important to me. While I certainly hope I am living 10 years from now, I can make the financial security of my family a reality by regularly reviewing my estate plan and making sure that it reflects my wishes and the financial circumstances of my family members. I can also regularly review my asset allocation, my life insurance and the titling of my investment accounts, as tax laws change.
Plans can also change. Earlier this week, I made a list of some places that I want to visit over the next 10 years. And then at lunch with a client on Wednesday, he talked about the incredible experience he had visiting South Africa and the safaris he went on. I came back to the office and added this to my travel list.
My priorities just changed, days after writing my list. My priorities will continue to change in the future. That is a reality in life, as there are always new opportunities, experiences, uncertainty and adversity.
I am much more likely to accomplish these things and make these goals a reality, by having a list and by spending time thinking about the future.
I encourage each of you to take an hour and think about the past 10 years and the next 10 years. Take 30 minutes for each, together, or at different times.
Look back over the past decade. Where did you live 10 years ago? What has changed? What did you accomplish? What have your kids done? Graduations, weddings, births, deaths? Where have you gone? Write it down somewhere.
Then look forward 10 years. What does that look like? What changes do you want to make? How can you improve your health? (Making time for more regular exercise and sleep are definitely on my list!). What is important to you? Are you doing it? What do you want to do? What do you want to stop doing? Write these down somewhere.
While past investment performance is no guarantee about the future, I can almost guarantee that if you do this, and look back 10 years and look forward 10 years, you will find this to be time well spent.
And you will find that hope is not a plan. Having a plan, or plans, leads to actions, accomplishments….hopefully, positive outcomes.
Talk to us. We want to help you with any financial matter that is important to you.