Declaration of Financial Independence

Declaration of Financial Independence | Jordan Ranly, MBA

Happy Independence Day – a day synonymous with our nation’s freedom from foreign rule. Might this be an opportune moment to declare your financial independence? Similar to how our nation’s founders envisioned a future of opportunity to better control our own destiny, LIVING LIFE financial planning empowers one to shape long-term dreams.

Begin by envisioning your future. Where do you see yourself in 5, 10, or even 20 years? Perhaps it’s traveling the world, owning a second home, funding children’s (or grandchildren’s) education, retiring comfortably, or leaving a significant legacy for your loved ones or charitable causes. Our LIVING LIFE goals worksheet can help guide you and loved ones through this process. Visualizing these goals provides direction and motivation for your financial planning journey.

To effectively map your financial future, it’s crucial to set SMART goals:

  • Specific: Define each goal clearly. Instead of “saving for retirement,” partner with Nvest to specify how much to save and by when.
  • Measurable: Set criteria to track progress; an annual savings target and budget.
  • Achievable: Ensure goals are realistic based on your current financial situation and resources. Divide larger goals into smaller, manageable steps to maintain momentum.
  • Relevant: Align your goals with your values and priorities. Consider how achieving these goals might lead to overall well-being.
  • Time-bound: Establish deadlines for achieving each goal. This adds urgency and helps one stay focused on taking consistent and disciplined actions.

For example, if your goal is to retire comfortably at age 65, LIVING LIFE financial planning is here to help.   We can calculate how much to save each month to reach your retirement savings target based on current assets, income, living expenses, and desired lifestyle.

A comprehensive financial plan that integrates savings, investments, and risk management strategies is imperative. Is it appropriate to maximize pre-tax contributions to retirement accounts like IRAs, 401(k)s, or 403(b)s to benefit from potential tax savings and employer contributions? Are you building flexibility into your plan via regular contributions to a Roth and/or personal brokerage account?  Are any other investment ideas (ie: rental property, private equity, etc.) worth considering and how does that impact diversification across asset classes to manage risk and optimize long-term growth potential?  Nvest is happy to study these questions.

We encourage clients to meet periodically with Nvest to review financial plans and consider adjustments as circumstances change. Life events such as marriage, children, career change, or economic shifts may necessitate modifications to your goals or strategies. Periodic reassessment ensures your plan remains relevant and adaptable to evolving needs.

Don’t forget to celebrate milestones along the way! Whether it’s paying off a significant debt, achieving a savings goal, or reaching a milestone in your investment portfolio, acknowledging progress reinforces your commitment to financial independence.  Enjoy that special restaurant you’ve been wanting to try or make plans to visit one of your “bucket list” locations.  This can serve as a great reminder that wealth is simply a tool toward realizing dreams.

By taking deliberate steps to set and pursue financial goals, you’re not only securing your financial future but also embodying the essence of independence by achieving personal freedom and financial peace of mind. This July 4th, commit to declaring your financial independence; where your dreams are within reach, your retirement is secure, and your legacy is preserved for generations to come.

Posted in Blog Post, Personal Finance.