As a financial planner, I get a wide range of questions from people who are considering hiring me to help them address an issue they’re facing. Some of them have very specific concerns about an investment they’re considering or the diversity of their portfolios. But more often I am asked for assistance with big, open-ended questions. Among them: “How do I plan my future?”

It’s an understandable concern. A lot of us are feeling uncertain and vulnerable these days, and we want someone with financial expertise to help us create a sense of order and structure.

That will vary from person to person, depending on their circumstances, of course. There is an approach that may help. I’ll share how I adjusted my own financial path in response to a couple of these considerations to illustrate what I mean.

Step One: Figure Out If You’re Happy with Your Circumstances

It’s quite common for people to head down a road that looked promising initially, only to find years later they aren’t sure it’s a direction that really works for them. This can be with your personal relationships, your living situation, your career, or a combination of many different factors. For me, one of the major planning pivots in my life came when I realized my current lifestyle was not the one I wanted. I was working for Morgan Stanley in New York City and enjoying the people I was working with.

But I wanted the ability to spend more time with family and control my professional destination. Working for a large corporation for 13 years had left me feeling like I was a cog in a huge machine that stopped, started and changed with little to no input from me. Additionally, I could have performed optimally but not be compensated for it due to an external event that limited the company’s resources. None of these conditions were likely to change, so I knew I needed to find a new path.

Step Two: Determine If/How You Would Need to Adjust Your Finances

It’s easy to get comfortable with our income levels and assume they will continue unabated. Candidly, I had not been prudent with my spending while working at Morgan Stanley, at times living beyond my means and being over-leveraged. I expected my income would continue to grow year over year. The recession of 2009 cast a harsh light on that fact. My compensation was cut 30% and it hit me hard. I had to adjust my habits – boosting savings, trimming spending – to better align with the circumstances and ready myself for my change of course.

You may find yourself in a similar position. For instance, you might want a change of careers that would require further education and a short-term reduction in income. What would it cost? Would you spend down assets, take out a loan or have a spouse contribute more to cover the gap in income?

Step Three: Be Honest with Yourself About Planning

Some people are highly disciplined and self-motivated. They work out on their own, not needing a personal trainer to pry them off the couch. They study technical guides and do their own maintenance and repairs of their households and cars.

Many of us aspire to emulate them, but when we review our past actions, the evidence suggests that’s not our tendency. We rely on the pros to help us get in shape, fix our broken appliances and take care of tasks we don’t have the time, expertise or desire to tackle on our own. Or we may be able to handle a lot of tasks on our own but need help with others. Financial planning may be an area that you’re not comfortable trying to figure out for yourself. There’s no shame in that. When a financial advisor does his or her job right, you come out ahead and get a sizable return on your investment.

The Big Lessons I Have Learned

After decades in this field, advising hundreds of people and all their different circumstances, I’ve learned several truisms that apply to everyone. Among them are these:

• Life changes fast – One day you’re single. A few years later, you’re married and have a child. The financial demands from those changes are significant and happen quickly. It’s hard to prepare for pending changes and make needed adjustments if you don’t have a handle on your current circumstances.
• Financial changes are slower – You might get lucky and receive a sudden surge of cash if your startup is bought by a major corporation or you inherit substantial assets from a relative. For most of us, however, wealth is but slowly and steadily over time. There are no shortcuts.
• Planning is not a one-and-done event – Because conditions change both for you, your family, and the world around you, you’ll need to consistently revisit your financial plan and adjust it accordingly. In the meantime, you need patience. You can achieve the changes you seek and attain your goals with hard work and consistency over time.

If you’d like more specific guidance on how to plan your future, contact us. We look forward to hearing from you.

Lake Road Advisors, a Fee-Only, independent financial planning firm with offices in Corning, NY, Ithaca, NY and Portland, OR works with clients virtually all across the country. Paul Sydlansky, the founder of Lake Road Advisors LLC, has worked in the financial services industry for 20+ years. Prior to founding Lake Road Advisors, Paul worked at Morgan Stanley in Manhattan for 13 years. While at Morgan Stanley, Paul was a senior-level manager within the Institutional Equities Department. In 2018 he was named to Investopedia’s Top 100 Financial Advisors list. Paul received a Bachelor’s degree in Economics from Marist College and holds an MBA from New York University Leonard N. Stern School of Business. Paul is a CERTIFIED FINANCIAL PLANNER™ and a member of the National Association of Personal Financial Advisors (NAPFA) and the XY Planning Network (XYPN).