Have you ever considered that when we are in our 20’s and 30’s, we tend to have a lot of free time on our hands and our health is typically the best it ever will be; yet we don’t always have the money to do the things we want. Then when we are in our 40’s and 50’s, we are still generally very healthy, and we have started to save some extra money; yet we do not seem to have any free time due to work and family obligations. Later in life as we get into our 60’s and 70’s, we tend to have more spare time (especially when we stop working full time), our health generally speaking is still ok for many people, and we tend to have money to do the things we want to do…so why do we not spend our money during this time in our lives? Finally, if we are lucky enough to live into our 80’s and 90’s (or beyond), we tend to have a surplus of free time, but generally we don’t have the necessary health to do the things we want, and therefore any extra money we have is somewhat useless. 

So, what does all this really mean as it relates to you today? First, identify what stage of life you are in today and assess your balance between your spare time, your money, and your health. Next, assess if you are still in a savings mode in life which means you are still working to accumulate wealth, or if you have transitioned to a spending mode where you are no longer saving money for retirement (generally when you stop working full time) and are spending down your savings. Lastly, create a list of items that you want to do or achieve at different stages in your life. Some people refer to this as a “bucket list” but I suggest you create different lists for different stages in your life. Let’s face it, if you want to go heli-skiing or sky diving for example, you might not be physically able to do that later in life when your health is not as good. On the other hand, if you want to take a trip to Europe for a month, you might not be able to do that while you are working full time. So be thoughtful around these different lists and assess what stage of your life you want to be in to achieve these goals so you can get the most enjoyment out of each of these goals or experiences.

Overall, I believe it is extremely important to create a financial plan where you can balance your time, money, and wealth at different stages of your life. Again, your financial goals will change at different stages of your life, therefore your plan must change as you transition to different stages in your life. I call this “Living for Today and Planning for Tomorrow”. This is why it is extremely important to work with a professional advisor that will help you to come up with a holistic plan to achieve your goals at each stage of your life. I am not a financial advisor and do not pretend to be a financial advisor and therefore cannot give you financial advice. However, I will tell you that more than 50% of US households’ primary asset is their home. Therefore, I believe it is extremely important for any fiduciary (like a Certified Financial Planner) to evaluate all your assets (including your home equity) when they are working with you to create a financial plan. One of the most efficient assets in retirement is your home equity because of the simple fact that when you take out home equity using a mortgage, you are not required to pay income taxes on the money (you are still required to pay property taxes of course). One of the best strategies to do this is to use a Home Equity Conversion Mortgage (HECM) because you are not required to pay it back monthly and it provides you improved cash flow and can help you to save in income taxes (this is not tax advice, please consult a tax advisor). In conclusion, I want you to enjoy your life, spend your money safely and wisely, and create lifelong memories while still maintaining a plan for your future needs and goals as well.