All Things Financial Planning Blog

The idiom of life can be summed up in the creed of Walter Hagen “Don’t hurry, don’t worry, you’re only here for a short visit, so be sure to smell the flowers along the way.” Or as one of my more direct clients put it “enjoy life now ‘cause you’re dead for a really long time.” Similar message, different delivery. There are things we can control and there are things we can’t. I often reflect upon the prayer penned by theologian Reinhold Niebuhr, “God, grant me the serenity to accept the things I cannot change. Courage to change the things I can, And wisdom to know the difference.” By now you are asking yourself what the heck all this has to do with financial planning. Simple. 

The financial plan is the path that balances your financial life. It creates the map on which you steer your financial course. It guides you in the day-to-day decision making regarding what you spend and what you save. The financial plan is the tiny voice in your head that tells you its okay to buy those expensive shoes because you’ve done a brilliant job staying the course and are in need of a just reward. It’s also the voice that reminds you to pay your bills on time, review your 401(k) allocation and talk to your kids about money maturity.

The financial plan is beyond the nest egg. Beyond the bag of money that many use to define who we are by what we have. In our capitalist society, money makes a big difference in the choices you have. The choice of where to live, what to drive, where to eat or what to wear. When I teach middle-school finance for the day, I mention to the class life’s continuum. I tell them “you will most likely not be the poorest person on the planet, nor the richest but will fall somewhere on the circle.” Strive for the best, but not at all costs. The key is Hagen’s desire to “smell the flowers.” 

When visiting with prospective clients, we spend a lot of time discussing current and future goals.  We delve into the balance between their work life and home life.  Is the prospective individual so driven to build the nest egg that they miss out on some of life’s cherished moments?  Is there a balance between asset and debt levels or are they so far in hock to create their “perfect” world that they are one paycheck away from financial disaster?

I have seen first-hand both situations. I have seen situations where clients become so embroiled in financial situations that are out of their control and lose themselves in angst and worry. They seem to delude themselves into thinking they can control a situation which cannot be controlled. Yet, then there are circumstances in which the key to the solution is right in front of them but they do not act. It’s Niebuhr in reverse:  press and pull against the things you can’t change or become reticent when opportunity is at hand. Human behavior is very interesting to observe, especially when money is involved.

There is a lot of anxiety surrounding the congressional debate over our nation’s debt. The level of uncertainty has grown exponentially as the deadline approached. Will my bank account assets be safe? Will my U.S. Savings bonds become worthless? What will happen to my Social Security payment? This is one situation where I often seek serenity in my decision making and attempt to shut out the noise. Every American who is registered to vote has the opportunity to affect change. It’s called election day. But until that comes around next November, there is little the average citizen can do outside emailing or calling their local elected official. Investors have already been through the harrowing experience of the financial meltdown of 2008-2009 where stock portfolios and home values plummeted. They have not yet mentally healed from the last blow and any additional angst would not bode well for the intermediate financial prospects of the country.

This is where the balance comes in. I am most impressed with clients who, when faced with a financial squeeze, suddenly get it. It is almost a sense of relief when they realize they are doing the best that they can, readjust their spending, and determine what things are important and what can be left behind. The funny part is the things that are important generally don’t include expensive vacations, fancy cars or keeping up with the Jones’s. The clients who reach serenity visit with their kids and grandkids, take long walks, visit with friends and simply smell the flowers along the way.

Then there is the other side. There are many individuals who didn’t smell the flowers, they ingested them. The lived life to the hilt and have since struggled to keep appearances of success no matter what the cost, both personally and financially. I am of the mind that those unfortunate individuals who fall into this category won’t ever create a financial plan. They will never have the peace of mind of not writing a mortgage or car payment. They will find themselves in financial turmoil and will never know serenity as they push and pull against forces that can’t be moved and lack the courage to change the things that are right in front of them.

There will always be cycles of financial upheaval and relative calm. It’s what you do during the times of upheaval that will determine how you spend your time during the calm. Be sure to smell the flowers.

Edward Gjertsen II, CFP®
President
Mack Investment Securities, Inc.
Glenview, IL