Financial Planning for the Next Chapter of Your Life

Why are you reading this?

These words did not appear on your screen or arrive in your inbox unbidden. The fact that you clicked on “Download” suggests that you may have some concerns about your financial future. Or maybe there are some things you want to be sure you can afford to do in the next chapter of your life. Maybe you simply want some confirmation that the steps you’ve taken thus far to prepare for what comes next were the right ones.

Not everyone has the in-depth knowledge to do their own financial planning, manage their own investments, or ensure their financial legacy. And those who do usually know they can benefit from an objective expert opinion.

But before you get to that point, there are certain questions you need to answer so that you can make informed decisions about your finances.
The next few pages will walk you through a model—a way to look at your priorities, concerns, and goals—that is probably different from the way you’ve dealt with them in the past.

You’ll then find some questions that will help guide your own planning and provide the basis for working with a financial professional, should you choose to do that. If you do choose to work with a professional, you should be able to save some time and perhaps some money by already having thought through the major issues that must be considered in financial planning.

With a little planning now, you can have the freedom and resources to make the next chapter of your life what you want it to be.

Dare to Dream

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Where to From Here?

Sooner or later, usually in mid-life, many people begin to have thoughts like:

Is this what the rest of my life is going to look like?
Am I going to have the time to do what I want to do, not just
what I have to do?
And when I do have the time, will I have enough money?
Do I even know what I’d like to do with the rest of my life if I
do have both the time and the money?

Do you ever find yourself wishing for some breathing space to reflect on where you are at this point in your life and where you
would like to be a few years from now?

Do you sometimes feel that things are moving a bit too fast to keep up with everything requiring your attention?

It would be surprising if you didn’t.

Even people who appear to have their act together often privately yearn for more control over how they spend their time. (The term “work/life balance” comes to mind!)

Restore Order

So, here’s a question for you … What would give you a greater sense of control?
More specifically:

What do you think is out of control in your life?
What aspects of your life seem to be out of balance?
Is there anything that seems overwhelming to you?
In what ways are things simply too hectic?

If all of those issues could be fixed, would that restore some order?

Or, if you’re one of those people whose life has never been very orderly, would relieving those pain points create some order for you?

That’s the first priority—establishing some control over whatever is spinning out of control.

That’s the only way to get off the hamster wheel and address whatever is standing between you and financial peace.

Find Financial Peace

Once you have the emergencies under control, you can give some thought to:

Managing your cashflow (money coming in and money going out) to support your current and future lifestyle without being
caught short
Positioning your investments in alignment with major market trends and allocating them to guard against large losses
Adjusting your tax planning strategies in accordance with the ever-changing U.S. Tax Code while minimizing your tax liability and keeping more money in your pocket
Preserving your estate to protect your legacy and provide for your heirs and/or beneficiaries

What are your major planning concerns in each of these areas? What changes need to be made
to give you financial peace?
You may need or want certain professionals, such as a tax specialist, CPA, or attorney to help
with the planning and/or execution of solutions addressing your cashflow, investment, taxation,
and estate planning concerns.

Realize Lifestyle Goals

Regaining control and addressing your pressing financial concerns will give you the luxury of
being able to envision what your life will be like when you retire. For some people that probably
should be “if” they retire, not when. Not everyone is temperamentally cut out for a life of
leisure.
So let’s refer to your vision of the future as “lifestyle goals” rather than retirement goals.
These are the important questions at this point:

What would you like to have in the future? These are your tangible goals that include things like money in the bank, an investment
portfolio of a certain size, a vacation home, a boat, a new business – you name it.
What would you like to be in the future?
Perhaps you want to become an entrepreneur or get involved in nonprofit work. Or maybe you have a second career in mind. These are your conceptual goals.
What would you want to do in the future to achieve your tangible and conceptual goals?

Perhaps you want to accumulate enough wealth to retire early. Maybe you want to find a franchise to buy or go back to school to prepare for that second career. These are the freedom goals that will enable you to have what you want and be what you want in the future.

What's The Plan?

Goals aren’t achieved by accident. It takes planning and preparation to get what you want, become what you want to be, and do what you want to do in life. It’s the folks who don’t do much planning who end up worrying whether they’ll outlive their retirement funds or regret
not having done what they wanted to do on this earth.

If you have some financial issues that are keeping you awake at night, you’ll need a plan for getting them under control and restoring some order to your finances. Some fixes may be a higher priority than others, but every one of them should be treated as a “need to do,” not a
“nice to do.”

Then you can tackle your most pressing current financial concerns in the same manner, though perhaps with a bit less urgency, and find the financial peace you’re seeking.

This process is cyclical and can be repeated if and when it becomes necessary. It’s impossible to anticipate every event that could conceivably have a negative impact on a person’s finances at some point. If something goes sideways, the same approach can be used to restore order and find financial peace once more before continuing to work on achieving lifestyle goals.

A Business Plan for Life

Once you have nailed down your lifestyle goals (tangible, conceptual, and freedom), you’ll need to figure out where you stand today, map out a plan to reach those goals, and come up with a way to make sure you stay on track. The best laid plans don’t work unless we stick to them!

Think of this as creating a business plan for the rest of your life. That certainly deserves all of the care and attention you’d devote to developing the plan for a new business venture that could make or break you financially.

Even when you have the help of a professional financial planner, there is a lot you can do up front to make sure that the financial steps you take will be the right ones. It all begins with an honest self-assessment of where you currently stand, because that’s the starting point for
putting your financial house in order.

Self-Assessment

The answers to questions like the ones that follow provide the starting point for financial planning. Bear in mind that if you have a spouse or domestic partner, questions asking what “you” think about “your” financial situation apply to both of you as a couple.

Restoring Order

What aspects of your financial life do you think are out of control?
What feels too hectic?
What pressures are you feeling (e.g., inadequate retirement savings, helping aging parents, paying for college, too much debt, etc.)?
What is your most pressing financial concern right now?

Finding Financial Peace

1. Cash Flow Management

2. Investment Positioning

3. Tax Planning

What tax deferred or tax advantaged investments do you own?
What did you owe in taxes last year?
What short and long-term strategies can be implemented in order to keep more money in your pocket?
Do you use the tax preparation services of a CPA or other professional? If so, are they implementing proactive tax planning or simply preparing a return?

4. Estate Preservation

5. Which of these is of the greatest concern to you?

Achieving Lifestyle Goals

What do you want to do in the next chapter of your life?
How much traveling do you want to do?
How often would you want to replace your vehicle(s)?
How long do you expect to remain in your current home?
How much monthly income do you think you will need to support the future lifestyle you desire?
If your vision of the future involves starting or acquiring a new business, how much capital is that likely to require?

Working With An Expert

Working with the right professional financial advisor can prevent these mistakes commonly made by people approaching retirement age:

Focusing on the short term rather than taking a long-term approach
Hoping for the best rather than planning well enough to retire on their own terms
Not having a coordinated income plan for their future
Claiming Social Security benefits at full retirement age or sooner
Not taking advantage of tax planning strategies that could save them a lot of money in
retirement
Refinancing their home and taking on a new 30-year mortgage close to retirement
Prioritizing paying for their kids’ college education or lavish weddings over their own
retirement
Taking on more risk than necessary to meet their long-term needs
Underestimating health care costs in retirement

Choosing the right financial advisor is key to avoiding such mistakes. That requires a little due diligence to make sure that each candidate under consideration:

Has verifiable credentials and experience
Has the right specialties (e.g., cashflow management, investment positioning, tax planning, estate planning)
Is able to articulate an investment philosophy
Does not claim to be able to beat the market
Explains how they are paid for their services (Fee Only) usually is best for clients.)
Always acts in a fiduciary capacity, putting the client’s best interests above all other considerations
Has working relationships with other financial professionals (e.g., investment advisors, tax experts, estate planners, insurance professionals, attorneys with appropriate areas of expertise, etc.)

How We Can Help

Still have questions? Not sure what’s best for you? Need help getting started? We’re passionate about
helping pre-retirees—each with unique goals and objectives—plan for retirement. Call or email Calamita
Wealth Management today to find out how we can help you achieve the comfortable retirement you’ve been
working and saving for.
This is what you’ll get when you choose to work with us:

Oversight and guidance in the four critical areas that are necessary for a successful retirement: Cash Flow Management, Tax Planning, Investment Positioning, and Estate Preservation
Construction/realignment of your investment portfolio to match your investment objectives, time horizon for the assets, cash flow needs, and other factors specific to you
Proactive and personalized guidance from a boutique firm
The same care we would give to family members
Portfolio management by a team with over 35 years of putting financial science to work for investors
Competitive, transparent fees that put your best interest first