Why I Went into Financial Planning
There's no shortage of content explaining the benefits of financial planning. and why it is a worthwhile process. Instead of adding to that list, I wanted to share how and why it’s so important to my father, Michael Rauth, and me. We both feel immensely fortunate that we have the opportunity to help people make sense of topics and decisions that can be daunting and stressful, to say the least.
My path towards financial planning did start, unbeknownst to me, when I was growing up. I have always felt very fortunate to have had financial responsibility be a part of my upbringing, and much of that came from my Dad’s interest in personal investing.
As my siblings and I got old enough to start working, filing taxes, applying for financial aid, and so on, we gradually gained an understanding of personal finances. I’ve frequently said that I felt like I knew just a little bit more than my peers growing up, but given how little I knew, that just made me worry about what we were all missing. Over time, it became clearer how important it is to have more than just a basic understanding of the different financial decisions that would arise in life and their potential impacts. So, when my Dad proposed the idea of joining the financial planning firm he had started, I jumped at the chance to actually pursue an education and the opportunity to share that knowledge, given how important it had always seemed.
That is very brief explanation to the why behind my passion behind financial planning - and it is a passion, my wife has to stop me from talking about 401(k)’s and investing over dinner with friends, it boils down to a firm belief that having a comprehensive understanding of what options are available when making financial decisions creates outcomes that can provide confidence and joy, rather than a stressor to avoid.
Money is meant to support a lifestyle that brings you joy
The idea that money provides joy can have mixed reactions, depending on who you ask. But the way we approach it at North Haven Financial is based on the idea that money is just a tool or a resource. This is not to say that it is easily managed or acquired, but fundamentally, money is a means to an end. The goal should never be to have an immense amount of money for money’s sake. It should be used, and we believe it is best used to pursue what is most valuable to you.
One of the first things we do with clients is complete a goals exercise, and it would probably be no surprise to you that what most people talk about wanting more of from life is the intangible things; spend more time with their family and friends, try new experiences, pursue an interest like playing an instrument or building out their woodshop. All of these things come down to determining what is most important to the lifestyle you want to live, and how to use the resources available to support it.
Financial planning is an ongoing process
It takes time and reflection to know what is most important to you, and that can, of course, change. But focusing on how you can support that life brings us back to the decisions that you may face to make it a reality. Knowing the impact of things like;
Retiring a few years early versus continuing to work
Deciding when to claim Social Security
Understanding what your expenses will look like in retirement
Balancing supporting your children against long-term retirement goals
Future estate planning considerations
These questions just barely scratch the surface of everything that can go into planning a fulfilling and joyful retirement. The reality is that there can be any number of events, both good and bad, that arise as you prepare for and transition into retirement. Taking the time to consider the life you want to create and how to plan for what is outside of your control makes it much easier to be prepared and feel confident.
Fulfillment Comes From Confidence
Financial planning isn’t just about preparing for retirement. It’s about creating the freedom and confidence to focus on what matters most to you. If you’re approaching retirement and want greater clarity around the decisions ahead, we’d welcome the opportunity to help you build a plan that supports the life you want to live.