What are you waiting for?

Financial planning works!

On Monday following the worst market close of since the Great Depression, I met with a retired client couple to update their financial plan.

We reviewed their goals, updated their resources, including reducing the asset picture to the closing values of October 10, 2008. We focused on two things:

1. Their plan was originally built to provide for sufficient low volatility assets to provide cash flow during this market downturn. Were they still on target?

2. Did they need to reduce their spending based on the market correction? If so, how much?

The answer to the first question was yes, they did indeed have sufficient low volatility assets to provide cash flow for the next four to five years. This gave them the freedom and time to allow the equity portion of their portfolio rebound.
As for a spending reduction, updating the plan reflected a need for a 10% reduction in spending, pre tax.

They left with a renewed sense of confidence in their future.

Given the power of this incredible process, why don’t more people take the time to plan?

There are two main reasons. One, people do not understand the benefit of the process. Two, there are misperceptions about the process.

The process turns upside down conventional thinking about investing.

In old style investment services are either one, advisory services focused only on asset performance or two, transactional investment services focused on buying and selling. Where are you in this picture? The answer is you are not in this picture. In the old model, investments decisions came first, and customer outcomes came second. Customers made investments and later built their goals around the outcomes of the investment process.

In progressive financial planning (our unique planning process is Prosperity Planning™) goals are addressed first. The investment plan, plan being the operative word here, is built under and in support of the client’s goals. What a great idea! I determine what I want and determine what actions, strategies and tactics are most likely to assist me in creating the goals I really want (and deserve) in my life!

The other stumbling block is misperceptions or myths about the process. Here are three I see most often.

Myth One, I can’t afford a plan.

Truth, The mostly likely result is that planning will save you money by avoiding mistakes or removing actions not in accordance with your goals. What if you are the exception and receive no monetary benefit from planning? What is the fair value of peace of mind? The impact on your health, happiness and sense of security that comes with a clear and actionable plan is priceless.


Myth Two, It is boring to talk about money.


Truth, In our award winning Prosperity Planning™ process, YOU do the plan. We facilitate, educate and guide, but the plan is yours. Every step of the way is interactive. Clients leave with comments like, “That was fun!” “I feel so much more confident.” “For the first time my spouse and I are on the same page with money!”

Myth Three, Only those with substantial assets benefit from a financial plan.

Truth, Planning is for everyone! The fastest path to wealth is first determining that you want to be wealthy- the first step in the planning process!


Mackey Advisors offers award winning Prosperity Planning™ services to clients of all asset and income levels, as well as investment advisory services for planning clients with invest-able assets of $300,000 or more.

Why not begin to change your life today? Contact me at Mackey@CultivatingProsperity.com or 859-331-7755 ext 103