I want to talk quickly about what I think is one of the most important things everyone should have. The Statement of Financial Purpose.
If you Google this term you can find all kinds of articles about it. The short version is this is the lens in which you make all financial decisions through. Or is it the lens you make all decisions through😊
Many advisors are creating these statements for clients, which is great. Although I think the right way to develop this statement is through a real financial planning process and not just answering a simple question such as “What is important about money to you?”
In my process, clients and I have multiple meetings to work through this real financial planning process. There are lots of questions I ask and we have broad discussions. Often the feedback I receive is along the lines of we have deep conversations about what purpose they want money to serve in their lives. Or said another way, we develop ways for them to be intentional with their financial lives. Although I do have clients tell me I am a Pain in The Ass because I make them think too hard😉
Since I specialize in working with stressed out physicians looking for a better life balance, I describe my process as a thorough diagnosis before any prescriptions can be written. The Statement is the high-level view of their prescription.
Hopefully your advisor has helped you create a Statement of Financial Purpose. If not, ask them to. I went through this process as part of my training and my Statement is – Money’s purpose in my life is to spend time with those I love while I can. While it may sound simple, it was the culmination of hours and hours of conversations and exercises to get there. This is what real financial planning is. You should expect nothing less than this from your financial planner.