Destressing During Unexpected Curves: Financial Planning

Post Written by: Kenneth L. Eshleman, CFP®

Earlier in April was National Retirement Planning Week. With the markets in regular discombobulation, it seems like some sort of cruel joke! Or, perhaps discussing financial planning is timelier than ever?

Kenneth L. Eshleman

Kenneth L. Eshleman, Partner and Senior Wealth Advisor with Domani Wealth

Considering the uncertainty in the world due to the novel coronavirus pandemic, now is probably one of the most important times to communicate with a financial advisor and align your plans for retirement. If you don’t have an advisor, I’d suggest getting one immediately – Domani Wealth is always available for a no-charge consultation.

Why is now such an important time to be communicating with your financial advisor, you ask?

Believe it or not, having an advisor can decrease your stress – in a time when we could all use more stress relief! One of the key tenants that should exist in any financial advisor/client relationship is the implementation of a comprehensive Financial Plan. Most people think of financial advisors only in relation to investments and cash flow. Investments are a key component of any financial plan focused on your future, but only one of many variables to consider.

An advisor that is a Certified Financial Planner® (CFP®) professional will take a much more holistic approach and help you strategize a true financial plan, which can lead to a solid footing during volatile markets. Working with a financial advisor who is a CFP® certificant is critically important. They will consider many factors of your financial life, including:

  1. Retirement age and income goal at that time
  2. Investments
  3. Asset allocation
  4. Cash flow
  5. Tax planning
  6. College education needs
  7. Insurance needs (life and Long-term care)
  8. Estate planning

The first item is highlighted for a reason. If you have not identified the age and amount of income you’d like to have in retirement, the rest won’t have your desired impact. All the remaining factors need to be considered to see if you are on track to achieve the first and most important item.

So how does a) working with a financial advisor and b) selecting one who is a CERTIFIED FINANCIAL PLANNER® professional reduce your stress level?

If you have a financial plan in place, you’ve built a roadmap that will help guide you toward the realization of your retirement goals. In fact, financial plans with details of everything from your goal retirement age and the right balance of asset allocation proves to be a roadmap able to weather storms as they arise.

Those unexpected curves in the road won’t derail you – curves will always happen. A financial plan, by nature, is not static, but always evolving and changing with what we like to call “life events” such as marriage, children, job change, etc.

Because of its effects, we’re considering the current global pandemic a life event – a curve in the road, an unexpected rainstorm. On top of the health concerns, you may be feeling anxious about your money and financial future.

At a time like this, it’s always smart to review and/or update your financial plan with your financial advisor. By updating your plan, you can get answers to questions such as:

  1. Can I still retire on schedule?
  2. Will I have the income I want and need in retirement?
  3. Will my money last as long as I need it to?
  4. Should I increase my 401(k) contributions?
  5. Should I increase my investment in stocks to get back to my target allocation?
  6. Will I have enough money to help pay for my child’s (or grandchild’s) college education?
  7. If in retirement, should I decrease the amount of my monthly income distributions?
  8. If I don’t need my IRA Required Minimum Distribution this year, should I forego taking it since the federal government stimulus package is providing a waiver?
  9. Should I take my Social Security income earlier now? Or maybe wait longer?
  10. Should I sell some of my investments and realize the loss?
  11. Should I consider a strategy that could generate an income stream for the rest of me and my spouses’ lives?

The unknowns and uncertainty are what creates stress and fear. You can mitigate those fears today by contacting your financial advisor to build or update your financial plan. It is one less thing you’ll have to contend with during these wobbly times in our world!

To get in touch with Domani Wealth to start a conversation about creating a financial plan, helping to de-stress in today’s uncertain times, or simply ask a technical question, we’re available anytime, just give us a call at 717-393-9721.


Important Disclosure

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this article serves as the receipt of, or as a substitute for, personalized investment advice from Domani. A copy of Domani’s current written disclosure brochure discussing our advisory services and fees continues to remain available upon request.


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