See your future

All things of value begin with a vision: the future of an empire, the drive for a Stanley Cup or the layout of your living room furniture. The paths of our journeys are lit by the images and words that we use to describe them. Whether held tightly in our hearts and minds or committed to paper or keyboard, our visions are what keep us going when things get tough. Financial plans are no exception; a truly effective plan is not simply a date for your retirement with a number attached to a dollar sign, it’s an image of what your life could be.

 

What your Vision Isn’t

Imagine you’re meeting with an advisor for the first time to begin the planning of your future retirement; you sit down at a table and across from you, your advisor sits all attentive and poised, pen and paper in hand. First question, “When are you planning to retire?” followed closely by, “how much income do you think you’ll need when you retire?” This line of questioning usually leads to a software program generating a set of charts, sample illustrations, all coupled with a forecast of your expenses over the next twenty or thirty years.

While this may give you a snapshot, it’s a snapshot without colour: no frame of reference, no focus – like looking at negatives from an old film camera.

 

What your Vision Is

It’s your future. A written description of the things you want to accomplish, the places you wish to go, the people you want in or out of your life, the activities and events that will fill your time, and the quality of life you plan to lead. As important as it is to have a vision, it is just as important to commit to it; put it in writing! It should be concise, clear and definitive, a description of your life in the years ahead.

 

How to create the Vision

It starts with questions about the life you see yourself living: the activities, the journeys and the adventures you plan to take. What do you wish to do: start a new path of learning, develop a skill or learn a language? What about the people in your life, do they have a role in your future, will you need to care for them, or maybe get closer to them again? Would you like to see parts of the world you’ve never been, maybe live in another country? Is there an organization that you’ve wanted to be a part of or a charity that you’ve wanted to support in a more meaningful way? Maybe participate in a mission, or take a hands-on approach right here at home.

Are there things that you’ve done for years but not so sure you want to continue doing? Will you travel as you did when you were working, or will the trips become longer and more exotic? What about legacies? Would you like to create something that continues on after you’re gone?

These questions aren’t meant to build income statements and balance sheets, they’re asked so you might visualize your future. They’re an opportunity to see what your life will look like, what it will feel like, how it could be. Sure things change and no we can’t predict the future; but a clear vision gives us a foundation to work from and a sense of what our future could hold. It is from here that we now begin the planning process - putting numbers to desires and making decisions based on fiscal realities.

Retirement is no longer a fleeting event like it was for past generations. For most of us, it will represent a significant part of our lives and a time when we’re still healthy, active and vibrant.

A part of our life well worth the time and effort it takes us to get all the details right.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.