Pre-Retirement

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The Difference Between Knowing & Doing

By Kyrk Davis

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We've talked in previous newsletters about why you need a financial advisor, and some of the holes you may have in your plan if you simply rely on Google for your financial education. Let's assume you are above average in your research skills and able to build yourself a financial plan equivalent to what you could get from a professional. Should you still seek an advisor? My answer is yes! Of course you expected me to say that because that's how I make my money, but it's true. As an advisor, my job is to help you make and follow through on good financial decisions, not just tell you what I think you should be doing.

For example, I have a new client family who recently started working with our team. I first met them this past January, and they quickly said they had been thinking about talking to an advisor and wanted to get together. It took 10 months of phone calls, texts, and emails to get them to sit down and talk, and then another month for them to make an actual decision.

These folks are both well educated and capable people, but they struggled with getting the ball rolling. They could have easily put a basic plan together for themselves and executed it, but they didn't. Why? Because life gets in the way, and they didn't have anyone to hold them accountable to the plan they'd created.

After getting everything rolling with them, they felt more relaxed and kept thanking me for continuing to follow up with them and hold them accountable for something they wanted to do, and essentially forcing them to take action. Again, my job is to help people take those necessary steps and make good financial decisions, instead of just thinking about them.

Another example I can give has to do with budgeting. I have a client family who created a realistic budget that gave them the cash flow to save and hit their financial goals.....but they struggled to stick to it. In this particular case, they asked that I take a quick five-minute look at their budget every month and shoot them an email giving the thumbs up or thumbs down. They came in with a fair amount of knowledge, but little success. Now, they're having a much better time sticking to that budget for the simple reason that I am holding them accountable to the goals they've set.

At the end of the day, whether you identify with one of these two families or you struggle with a different area of your finances, I'd love to identify where you are prone to struggle, help you overcome that, and ultimately take action. While knowledge is important, action is what turns goals into reality. And of course, the first action is to pick up the phone and give us a call. Let's chat.

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