Goals and Values
Having a financial plan built without specific goals in mind and your closely-held values as a foundation is like setting sail without a destination in mind nor a compass in hand. It will guarantee a life without meaning and unlikely to succeed.
At Artham, we spend a lot of time at the start of a relationship to make sure that every element on the plans we develop with you lead you to your goals and are consistent with your values.
Good Goals
"To have $1M" is a goal, but arguably a poor goal. It doesn't say anything about what you are going to do with your $1M, or when you'd like to get there.
Goals that are specific, time-bound and meaningful to your life make for better financial plans. Like, "To fully pay for my daughter's college", or "To retire from my current job at 55, so I can teach at my community college", or even, "To move to Taos, NM, at 60, so I can be a snowbum in the winter and float the river in the summer".
Important Values
A financial advisor who doesn't understand your personal and family values is working blind. How would they help you navigate life's difficult choices if they don't know what's most important to you?
A family's well-articulated value system shows priorities. For example, knowing that charitable giving is a cherished value in your family becomes crucial to a conversation about when you can retire and how that may impact your giving. Knowing that your family values education suggests that a 529 college funding plan could be used as an inheritance for not just your kids, but also your grandchildren.