Financial Planning

Future Thinking: What is your plan in the next 2-3 years?

By December 21, 2020 No Comments

For a moment, or at least an article, let us throw out the traditional long term outlook that financial planning typically addresses and discuss what happens with your financial life in the next 2-3 years. As all of us suffer through COVID-19 and hope for good news on the radio in the morning, spending some time doing proactive thinking regarding your finances could turn out to be one of your “successes” while we hunker down.

Things You Need to Do

Get relief – Accepting the relief that is offered is difficult for independently minded earners and business owners (especially those that have been proactive in planning for the unexpected). Take advantage of programs that will help relieve some of the pain now to help you plan for when things change. (And remember that your tax dollars pay for these programs if you are feeling guilty).

Vision your Future Self – Take a moment and visualize where you will living in two years. Is it the same house? Same furniture? Same car? Now picture logging into your financial and investment accounts. Does what you are feeling and seeing make your stressed OR do you feel relaxed and content? If you were happy, was it because of growing assets or a sense of freedom? In order to decide how to emerge from this time with strength financially, you must identify what strength means to you.

Review your investment portfolio – Diversification and sticking with your plan is important. But not all investments are treated equally. Investments and companies that performed poorly prior to the pandemic need to be looked at, ones that have also not recovered as expected may need some more research. Finding opportunity while maintaining a risk management strategy needs to be part of a long- term plan.

Be informed (but stick with your intuition) – If you are reading and staying informed on financial opportunities at this time, fantastic. If you are worried but optimistic, join the club. (Looking at your investment accounts daily? Great, but maybe give it a rest for a few)! Everyone has an opinion and beware the gurus who are touting specific financial recommendations to large groups (especially the investment ones). Your intuition about what you want and need are just as valuable in making decisions as online blogs.

Take another look at your bucket list – Do something on your bucket list in the next 3 years. If you are like me, the COVID-19 has put a lot of our desires into perspective, especially material ones. It has changed what we thought we needed (not to mention having your mortality in your face at the same time). For some of us, a 2-3 year plan may be a long term plan and others could be very different, it’s hard to know. So don’t delay and start a plan for checking items off that bucket list.

Hopefully, this is the last pandemic in our lifetimes, but unfortunately, the likelihood of life being extremely interrupted will happen again and the lessons learned will continue for a lifetime. Contact Julia now for an introductory consultation on how financial planning can bring some clarity to the process.

Investment advisory services offered through LW Advisors, a Registered Investment Advisor in the state of Iowa.