“It was the best of times, it was the worst of times. We had the best before us, we had nothing before us.”
— A Tale of Two Cities by Charles Dickens
We might not liken ourselves to the oppressed French peasantry of Dickens' classic novel of the French Revolution, but we have each suffered in some way from an historic economic downturn that has likely changed the way many of us live and anticipate the future.
During the Great Recession, countless individuals and families experienced job losses and significant losses in their portfolios, either in personal accounts and IRAs, or through retirement plans such as profit-sharing and 401(k)s. Businesses were hammered with sharply lower revenues, prompting many to cut workforces, employee benefits, including healthcare and retirement plans or go out of business. Real estate markets reeled from shrinking equity values, limiting access to liquidity and forcing foreclosures and a seismic shift in the industry.
After experiencing the worst of times since the Great Depression, it appears that faint light at the end of the tunnel several months ago was a signal of an improving economy. Although we are not out of the woods yet, we can once again anticipate better times, if not the best of times enjoyed before the debacle. Now is a good time to take steps to position your family for a more fulfilling financial future.
The first step is to gather your family members and re-examine your needs, goals, wishes and even dreams as they relate to your values and what matters most to each of you. What you envision might include a comfortable lifestyle; a new business; a secure, happy retirement; education, growth opportunities and inheritance for the children or grandchildren; travels; new endeavors or meaningful contributions to the community.
Next, determine the financial resources you would need to fund those dreams, now and later. Do some research into what you want; that's a lot of the fun. What would you need to pull it off? Most things come with price tags and being as specific as you can helps to shape your visions, making them more real and attainable.
Your next step would be to evaluate your current resources by gathering statements that document the values of all your financial assets, then preparing a balance sheet and income statement. You must know what you have in your personal and retirement accounts as well as business assets and how much comes in and goes out. This can be very enlightening. It can also be a big chore so remind yourself you are taking an important step toward reaching your goals and ideal lifestyle.
Now analyze your investment assets to determine if they are properly allocated for the opportunities to achieve your financial goals. You might need to add funds to personal investment and retirement accounts or make some strategic tax moves. If your overall asset diversification is too conservative, consider adjusting accordingly. However, your overall investment mix must be in balance with your personal comfort and risk tolerance level. Your investments should be monitored for performance and safety.
You might consider consulting with a financial professional for guidance through this process.
Although we have experienced the worst of times, now could be the best of times to take steps to carefully plan for your family's financial future. With a renewed sense of well-being, perhaps the best is yet to be.
— A Tale of Two Cities by Charles Dickens
We might not liken ourselves to the oppressed French peasantry of Dickens' classic novel of the French Revolution, but we have each suffered in some way from an historic economic downturn that has likely changed the way many of us live and anticipate the future.
During the Great Recession, countless individuals and families experienced job losses and significant losses in their portfolios, either in personal accounts and IRAs, or through retirement plans such as profit-sharing and 401(k)s. Businesses were hammered with sharply lower revenues, prompting many to cut workforces, employee benefits, including healthcare and retirement plans or go out of business. Real estate markets reeled from shrinking equity values, limiting access to liquidity and forcing foreclosures and a seismic shift in the industry.
After experiencing the worst of times since the Great Depression, it appears that faint light at the end of the tunnel several months ago was a signal of an improving economy. Although we are not out of the woods yet, we can once again anticipate better times, if not the best of times enjoyed before the debacle. Now is a good time to take steps to position your family for a more fulfilling financial future.
The first step is to gather your family members and re-examine your needs, goals, wishes and even dreams as they relate to your values and what matters most to each of you. What you envision might include a comfortable lifestyle; a new business; a secure, happy retirement; education, growth opportunities and inheritance for the children or grandchildren; travels; new endeavors or meaningful contributions to the community.
Next, determine the financial resources you would need to fund those dreams, now and later. Do some research into what you want; that's a lot of the fun. What would you need to pull it off? Most things come with price tags and being as specific as you can helps to shape your visions, making them more real and attainable.
Your next step would be to evaluate your current resources by gathering statements that document the values of all your financial assets, then preparing a balance sheet and income statement. You must know what you have in your personal and retirement accounts as well as business assets and how much comes in and goes out. This can be very enlightening. It can also be a big chore so remind yourself you are taking an important step toward reaching your goals and ideal lifestyle.
Now analyze your investment assets to determine if they are properly allocated for the opportunities to achieve your financial goals. You might need to add funds to personal investment and retirement accounts or make some strategic tax moves. If your overall asset diversification is too conservative, consider adjusting accordingly. However, your overall investment mix must be in balance with your personal comfort and risk tolerance level. Your investments should be monitored for performance and safety.
You might consider consulting with a financial professional for guidance through this process.
Although we have experienced the worst of times, now could be the best of times to take steps to carefully plan for your family's financial future. With a renewed sense of well-being, perhaps the best is yet to be.