Financial Security

“Financial Security” might mean different things to different people, but for nearly everyone, making sure that they achieve their own definition of security is the most important part of their retirement plan. So, how do you define financial security? On today’s show, we’ll cover some of the popular responses we hear from clients during the planning process.


John Stillman: You're listening to Rate Money Tips with Isaac Wright, Chartered financial consultant and the president of Financial Dynamics and Associates. He's the author of Navigate Your Way To A Secure Retirement and you can get in touch at any time by calling or texting, 804-777-9999. Again, that's 804-777-9999. Isaac, it's our last pod of the year. How excited are you?

Isaac Wright: That it is good sir. Looking forward to having some nice family time through the end of the year here. And things always seem to get a little slower before everything starts speeding back up with new year's resolutions and 2020 and of course there's many plays on words there as well. But it's been a great year John, it really has. Very happy with how things... our practice is growing, happy with just balancing personal and professional goals. So I hope you've been in a good spot yourself man. How do you feel about it?

John Stillman: Well, I would say somebody bragging an awful lot about how good his year was. But no, I think …

Isaac Wright: There are always set backs, man, don't give me a hard time. It's always a few things you always wish could have done better, but always try to stay grateful with it all to you, man.

John Stillman: I hear you. Well, has been a good year and hopefully it has been for you too on the other side of the microphone. Isaac, we're going to talk today about financial security. As we get ready to head into the new year, let's make sure that everybody is on good firm, secure financial footing. But when we say financial security, that can mean different things to different people. So let's quantify some of the things that people might be thinking or might mean when they say financial security.

Isaac Wright: I mean almost when you say it that way it's kind of almost setting up how people feel every year as far as, I would say, a new year's resolution. Having that sense of financial security is always front and center. So let's go and tackle that.

John Stillman: So one of the things, if somebody says, "Well, I just want financial security." For some people that simply means I don't want to be a burden on my kids. Regardless of my health situation, I don't want the kids to have to take care of me.

Isaac Wright: This is probably been something I've seen more of. Many people today, and as we all know, we're having more... we're living longer, we're having more success of being able to do things for a longer period of time. Maybe willing to travel, go out and visit, do and somewhat have that sense of independence for a lot longer in life that, let's call it, we didn't have 15, 20, 30, 50 years ago because we're all are living longer. That also comes part and parcel with not having the kids have to spoon feed you as you get older. So let me say financial security, I think if you can put yourself in a place that allows your children to have the capability to step back if you have a life changing event and not having them have to take time off of work, putting you in a place where you can feel at ease and centered that, your kids can live their life, I think it's A, selfless, but B, I think that's a great thing to discuss and think about as you try to figure out your financial security for the upcoming years.

John Stillman: So make sure you're not reliant on the kids. For some people, Isaac, when they say financial security, what they're thinking in their mind is, "Well, I want to be sure I never run out of money. I want to make sure that paycheck is always there for me."

Isaac Wright: Well, that's been the common denominator. If you ever hear and think about what's the number one goal for people that are entering retirement is to not run out of money, which obviously makes great sense when you run out of money, you run out of options. So I think financial security, if you're unfamiliar with, let's call it a financial plan to begin with, where somebody has never sat down with you to create a forward looking estimates and evaluating the probability of you having enough money to live to a certain age, from there you can even build in additional variables. That's probably been one of the centerpieces of our practice, is having this type of communication skills along with using software, along with using data to help map that out.

Isaac Wright: So again, if you have any concerns about whether or not you're going to have enough money to retire, or maybe on the flip side, maybe you feel like you're going to have plenty of money and that money's going to get inherited and you want to make sure that money is not put in a place where uncle Sam becomes the largest beneficiary of it, we can help you on both sides of those fence. So feel free to reach out, 804-777-9999, leave a message. You can ask for me or you can send a text even and we'll reach back out to you. So we want you to have that sense of financial security building this as kind of almost placing this in your mind as a new year's resolution if you don't have it already established proactively. So these are good things.

John Stillman: 804-777-9999. What does financial security mean to you? To some people it's not relying on the kids as we discussed to some people it means never running out of money. Last one, Isaac, when some people say, "I want financial security", what they mean is after I retire, I want to not be reliant on a job. I want to be able to work part time if I want to, but not because I have to.

Isaac Wright: Well, I'm glad this is the last one and I'm going to answer this in one sentence. What we've heard today is financial security equals independence. So the independence of being able to work part time, the independence of being able to go out and travel and do things discretionary wise without feeling to be a burden on your kids. The independence of not being stressed about running out of money. Financial security means a higher level of independence and staying on top of what is, let's call it you should be knowing about your financial affairs to feel this way. So we've had a great year, John. I know we've had a mini podcasts and covered many topics, but the continuation of being able to help people put themselves in a better place when it comes to their financial knowledge, their financial affairs, we're looking to do this going into 2020 and many years ahead.

Isaac Wright: Just know that's what Financial Dynamics, Isaac Wright, our team, this is what we're all about here at our office. If you have any concerns, if you live close to here in Richmond, if you're around this area, feel free to come to our office, give us a call. Again, that number is 777-9999. You also can reach back out in any format really that we have. You can email, text us, it doesn't really matter. We just want to be here if you have any concerns about these things because every year people come up with these new year's resolutions. I think this is a fan. If you don't have a new year's resolution, I will implore you to say, make this your new year's resolution is, "How do I establish a greater sense of financial security and independence?" John, I hope that really helps everybody today and I can't think of a better way to end the program.

John Stillman: Yeah, well that wraps it up for the year. We're not going anywhere. We'll be back after the holidays and bring you more great conversations in 2020. But Isaac, a Merry Christmas to you and yours, a happy new year. We'll talk with you on the other side.

Isaac Wright: Always a pleasure John. Thank you so much, same to you and 2020 here we come.

John Stillman: One more time as we depart, if you'd like to get in touch with the team at Financial Dynamics, that number to call is 804-777-9999. You can also text if that's easier for you. Have a great holiday season. We'll talk with you again next year.

Announcer: Information is for illustrative purposes only and does not constitute tax investment or legal advice. Always consult with a qualified investment, legal or tax professional before taking any action.

Announcer: Advisory services offered through J.W. Cole Advisors Inc, JWCA. Financial Dynamics and Associates Inc and JWCA are unaffiliated entities.