Three Key Questions To Use in Financial Strategy Sessions

We have five weeks remaining in our Strategy Session One huddle-ups with clients. Over the years we’ve identified too many financial and life planning themes to address in a single annual meeting. Quarterly meetings seem too frequent and can lead to speculation on what’s happening or coming next “in the market”. I don’t know or have those answers, and neither does anyone else. Our best approach is our current approach which includes splitting planning conversations into two distinct strategy sessions each year.   

Why not invest an hour or so every six months to refine what you want, assess progress, and gain clarity? With so much uncertainty in all aspects of life, it’s easy to lose focus and become distracted. This can lead to reacting to all that we think and see happening around us. There’s a better approach to managing your decisions and time, both in life and with your money.

Today, more than ever, perspective is necessary.  Where have you been?  Where are you now? Where are you going? These three questions are powerful and can be a guiding light to making better decisions. They calm the rough waters splashing around us daily and provide a foundation to build from.

Ongoing financial planning is a conversation that ebbs and flows over time based on the complexity or simplicity in your life at any given moment. It’s not about rates of return, trading strategies, or accumulating more. It’s about learning more about yourself and what might be possible by following a repeatable process.

There is no such thing as a perfect financial plan, or finish line, or a magic number that will ease your concerns. We’re all human and our tendencies are to want more even as we’ve reached our goal of enough. Acknowledging this and how our behaviors can self-sabotage us is a big step forward to creating a process that sticks. 

The goal in planning is not to be right today, just less wrong over time. When you accept this truth, it takes the pressure off being perfect or correct in all your decisions (life & money). Instead, you may refocus your energy on inputs within your control. What are you spending, where are you investing, and how much cash is accessible before it’s needed?

These questions can be difficult to answer on your own.  Finding a friend you can trust allows a planning conversation to evolve as you do over time. Understand your plans will change because life changes, the process helps you accept this and adjust as necessary. Accountability through a partnership allows delegating planning and strategy to a friend so there’s more time to spend where you want.

All the valuable stuff such as family, relationships, time, dollars, and careers need context. It’s important to periodically step back or to the side and view your priorities from a different vantage point. This is challenging to accomplish on our own. How quickly we forget our victories and successes in life as they seem to evaporate. Instead, our brains would rather have us focus on the losses and missed opportunities. It’s important to capture a true reflection so you may change your narrative.

It’s not easy to accomplish this on your own or with a spouse, the input and feedback from a friend can go a long way. Financial plans lose relevance after they are created and require ongoing conversations to stay relevant. Looking back over the years can highlight where you’ve been, what you’ve managed through/over/under/around and how you’ve arrived at where you are today.  Are you happy, do you have regrets, are you making the most of what you have?

Your answers will arrive through better questions from a friend. This will help you figure out what next steps, if any, are necessary. Our strategy sessions support better financial decisions which inevitably spill over to better life decisions. There is so much to gain beyond financials by following a process and talking with a friend.

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