What to Consider When Planning for One’s Financial Future

As a financial advisor, every day looks a bit different for Kim Monaghan. The finances of each person she works with are reflective of their unique circumstances and livelihoods, meaning the strategies necessary to achieve financial stability and freedom are likely to look different for each individual. As such, a large portion of Monaghan’s work is to come up with unique paths and methods to shape their financial futures. Despite the tailored approach, Monaghan’s goal remains the same: to provide accurate and useful information that helps individuals find empowerment through their finances.

“Our goal in financial planning is to make sure that people feel seen, heard and safe, and to build financial plans that give our clients the creative freedom to plan for the life they want so they can live lives they love with the people they love,” Monaghan says. “Tactically, that might look like making sure people are growing their wealth to put money in the right places based on their goals, and that we’re protecting that wealth from things like recessions, illness or long-term care needs.”

In life, the unexpected happens more than people would like. This can leave people in vulnerable positions, especially if they are underprepared. Part of Monaghan’s role is to ensure that people have specialized plans in place that factor in the ever-changing financial environment of the individual. While it is important to strategize the different ways in which one can grow their money, it is equally important to consider the ways that money can be lost. This is an aspect of the role that Monaghan found herself connecting with more personally when one of her loved ones was hit with an unexpected medical expense.

“One of the things that I love about this job is we’re planning for the best, but also in case of the worst, and in the case of my family, we had to do that,” Monaghan says. “And, to know that we had a financial plan for that for us, and for our clients, also felt really empowering because I was able to take time to just focus on getting better and being with the family and not the financial stuff.”

In addition to helping people plan for the unexpected, Monaghan’s work also revolves around setting people up for retirement. While it is never too late to begin planning for retirement, it is best to start as soon as one can, according to Monaghan. This is because a large part of retirement planning centers around increasing one’s income and benefits. The sooner one begins to take control of their financial future, the more income they will have to make last.

“I think a lot of people probably think, ‘Oh, I wish I had started yesterday,’ but the best thing we can do is start today and start making a plan. And look at what we’ve already done, because a lot of people are a lot further along than they think they are,” Monaghan says. “And then, once they sit down and meet with an advisor, they really have a view of where they are and where they’re going and what they need to do to get where they want to be.”

One consideration that is easy to overlook when it comes to retirement is the different ways one wants to spend their money. According to Monaghan, while people are often reminded to save their money, they might not be thinking about the many ways in which they will be spending their funds.

“When it comes to spending our wealth, all of a sudden, a lot of things change at once. And you have a lot of accounts that you’re dealing with that all have different tools and different reasons for being,” Monaghan says. “It can feel really overwhelming to understand which of those tools to use and when, depending on what’s happening in the market. And so, a financial advisor can really sit down and help you understand what each of these tools does.”

While this conversation is individual-specific, there are some expenses that anyone can think about. For example, someone planning for retirement should consider things such as whether they want to donate to a charity, what sort of long-term care they are interested in and how much that will cost, and how they want to handle their estate. A financial advisor is there to guide each person along a specialized path meant to secure the future they want.

“Many LGBTQ+ people that we work with want to support the causes and organizations that help shape their lives, and we can actually build that into your financial strategy while maintaining your own security,” Monaghan says. “And, if that’s important to you, we want to make sure that it’s important to us and that we build a plan for it. … I would say one of the most empowering things that you can do going into retirement is making sure that your estate plan is updated. So, your estate plan is essential to making sure that your wishes are honored and your loved ones are protected.”

The process for planning one’s estate is always ongoing and evolving. New documents and information need to be updated over the course of time as things change and take new forms. A financial advisor will be able to look at one’s finances and determine the best way to make sure their wishes are fulfilled. This includes updating beneficiaries, assigning power of attorney and preparing to leave a legacy, or money behind for a charity or scholarship.

While someone without a background in finances is likely to find these factors confusing and hard to understand, a financial advisor can connect with them to ensure that all of the proper steps are taken to protect the wishes someone has for their estate and to provide a fulfilling and freeing future. Retirement is something to look forward to, and with the right fit, a financial advisor can ensure that one’s finances are secure and in their control.