When you make a financial decision, does it start with looking at the numbers or asking the question, “How do you feel about that?” When should your feelings overrule the numbers, and what areas of your plan are most likely swayed by feelings and emotions?
(Click the featured times below to jump forward in the episode)
Let’s talk about our feelings! Believe it or not, financial planning is not always about math and logic. Your feelings come into play, especially in regards to specific topics.
If you have a family home that you’ve lived in for the past few decades, do you downsize once the kids are out of the house? Or do you want to fix it up for when family comes to stay? Do you have land that has been in the family for a few generations? Sometimes the financial figures don’t make as much sense, but you need to ask, “How does it make me feel?”
What does your financial legacy look like and how important is it to you to leave money behind? Do you want to pass money to your children and grandchildren or to charities? With some of these decisions you’ll need to also consider the tax planning accordingly.
Depending on how you feel about your financial advisor, you may want to know every fine detail of the plan. Or, you may just want them to make the plans so you can be more carefree. Then, when it comes to market volatility, you’ll want to understand the true risks instead of just basing your decisions on feelings and knee-jerk reactions to a statement.
Listen to the entire episode or click on the segments below to hear more about a particular topic.
[1:06] – Feelings get tied up in the family home.
[3:36] – Make sure you can age in place and have the proper support around you.
[4:06] – How important is it to you to leave a financial legacy?
[6:25] – Do you want to know the fine details of your financial plan?
[8:41] – How you feel about the market volatility can impact your decisions.
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