To some investors, financial planning can initially appear full of rules and rigidity. During your earning years, accumulating wealth is often achieved by years of disciplined saving and investing. In retirement, sustaining that wealth requires not only spending within one’s means, but also making wise decisions amidst constantly shifting economic, market, legal and political environments.
Discipline certainly plays a role in successful financial outcomes, but not the type of austere discipline one may think. Instead, discipline is best thought of as a commitment to an ongoing process, one led by enduring principles and values. By sticking to this process over time, we can ensure that changing circumstances don’t derail our pursuit of long-term goals.
It’s important for a financial plan to be flexible – shifting market environments and life circumstances often require us to adapt. Discipline might seem completely opposed to this need for versatility. But in reality, only the commitment to a disciplined process can foster the flexibility needed to successfully navigate life’s challenges.
In financial planning, discipline isn’t about committing to a single path and refusing to deviate. Instead, it’s about sticking to a set of principles, processes, and values that can be revisited as life evolves. This common theme shows up throughout the wealth-building process, whether in terms of markets, life events, or evolving goals.
One of the eternal struggles of financial planning is the attempt to plan for a life that’s inherently unpredictable. Medical events, career shifts, and family changes can all lead to a life that looks unexpectedly different. Despite these shifts, one area tends to offer stability throughout life – our values.
Every individual differs in how they think about values like security, generosity, legacy, independence, and achievement. But values like these can serve as an anchor when life circumstances change dramatically.
The importance of values is why we place an emphasis on deep, personal client relationships at The Fiduciary Group. By discovering the values that drive a client, we can help better tailor their financial plan, both for the realities of today and the uncertainties of tomorrow. While life often calls for a change of plans, discipline is about making those changes in line with our enduring values, rather than immediate emotional reactions.
External life events aren’t the only factor that can result in planning shifts. As your life evolves, you may find your financial goals evolving too. It’s natural to think that our goals today will remain our goals forever, but disciplined planning requires us to consider other possibilities.
For example, an individual who never gave much thought to their legacy might experience a shift in thinking as they see their grandchildren age. Alternatively, a business owner who never planned to retire may find themselves craving a slower pace of life after spending decades running the family business. Having the foresight to preserve flexibility in a financial plan can help navigate these changes, even if doing so takes extra work and preparation.
Addressing evolving goals can be a challenge under a narrow planning process that only anticipates a single path. Having a process which considers contingencies, and not simply the one that seems most likely, is key to preparing for potential goal shifts. Regular reviews and scenario planning can help ensure that your strategy remains aligned with your goals, no matter how they evolve.
True discipline creates the foundation for flexibility, not rigid limitations. At The Fiduciary Group, we emphasize this view of discipline as key to successful long-term planning.
Markets, life circumstances, and personal goals may shift over time. Our values and principles can serve as guideposts to navigate these changes – as long as we have the discipline to stick with them. To learn how The Fiduciary Group’s approach to financial planning can unlock meaningful flexibility on your wealth journey, we invite you to start a conversation today.