As a financial advisor, one of my jobs is to help my clients get clear about their money. I ask clients about their income, assets, and liabilities, insurance protection, and so on, so we can map out where they are going with their money. Often before I get started, I ask them a few questions so I can understand what’s important to them and where their goals are.
Below are eight questions I use. You can use them too.
1) Who will you need to, or just want to help with their education?
2) If you have kids, how important is it to you to be able to impact the financial lives of your kids and grandkids?
3) How and when do you see yourself retiring? What will you do, and what will it cost to do it – not just the day after you retire, but 10, 20 and even 30 years later?
4) Do you know exactly what would happen to your family if you didn’t wake up tomorrow?
5) Do you know exactly what would happen to your family if you got hurt and couldn’t work?
6) Are your parents living, and if so, are you expected to take care of them in the future? And have you considered that you might need assisted living later in your own life?
7) If you decided to pursue a dream, what would your cash-flow needs look like?
8) What are some things you could do with your money to make the lives of others more meaningful?
Answering these questions is not an easy task but it is a lot easier to do when you have someone to work through them with you. Find a trusted friend or spouse who can help you think about what is most important to you.
If you find yourself with a lack of financial clarity, it usually helps to sit down with a financial planner to help clear things up.
Need some help? Schedule a free consultation with Ken.
