Finish lines are important—in races and in our finances. No one keeps running after crossing the finish line, yet many of us haven’t considered how this concept applies to our financial lives. Why? Setting your financial—or retirement—finish line isn’t easy! Many people we encounter have their resources planned out but haven’t thought intentionally about why they want to retire, what they want to do, how they’ll spend their time, and what will bring them joy in this next phase of life. But both aspects are crucial, much like both wings of an airplane are essential for flight. This is a topic I care deeply about, as I’ve seen the benefits of doing this well and the disappointment of not giving it the time it deserves. The amount of wealth we accumulate isn’t as important as defining the right lifestyle and financial goals. So, let’s explore lifestyle and accumulation to help define your purpose and preparedness.
These ideas and principles will serve as your compass. When we begin with the end in mind, we create a hopeful path. And ideally, this journey will be both enjoyable and life-giving.
How Do You Decide How Much Is Enough?
This is not a “one-size-fits-all” question. What does enough look like for you? We don’t need to be the lifestyle police for others, so let’s focus on our own financial goals.
Here are some steps to help you define your “enough”:
- Reflect on Your Needs and Desires: What do you truly need and want from your money?
- Balance Contentment with Desire: Paul Sullivan’s book, The Thin Green Line, suggests that true wealth is about learning to be content. If you constantly chase more, you’ll never be satisfied.
- Use Your Wealth Intentionally: Recognize both the positive and negative impacts of your resources. Money can create security, but it should also be used in ways that encourage a positive legacy.
The Importance of Contentment
Learning to be content is critical. More doesn’t necessarily mean better. Revisit your plan and your “why,” but resist the urge to constantly seek new desires. Break the connection between income and consumption.
For some, this means setting a “lifestyle finish line.” For others, it means intentionally deciding when and why to scale up or down. The key is to keep your financial goals aligned with your life goals.
The Process of Planning for Financial Contentment
Finding your financial “enough” involves intentional steps:
- Find a Mentor: Look for someone who has traveled the path you’re on and has wise counsel to share.
- Imagine Your Perfect Day: What does a “perfect day” look like for you? What resources would you need to make it happen?
- Define Your Life Portfolio: (Consider reading: 4 Parts of a Joy-Filled Retirement Life Portfolio for guidance.)
- Plan With Your Spouse: If applicable, outline your lifestyle and financial goals together. Different perspectives can help create a more comprehensive plan.
- Determine Your Impact: How do you want to impact family, friends, and causes you care about? Once you define what you need, the rest can be shared generously.
Converting Goals into Numbers:
- Create a Life-Giving Budget: Determine how much you need to live on, ensuring you spend less than you earn.
- Plan for Key Areas: Think about your retirement, healthcare, travel, and legacy goals.
- Assess Your Current Assets: Are you on track? If not, what changes do you need to make? If so, you can think creatively about what to do with the rest.
Tip: Build a support team—you don’t have to go it alone. My wife and I have shared our lifestyle and asset “finish lines” with trusted friends and they’ve done the same with us!
How Do You Decide When to Stop Working?
Here’s the principle: think about what you need and want from your time. Being financially prepared doesn’t mean you’re fully prepared. Now is the time to build your “what” and “why” for how you’ll spend your time.
Options to Consider:
- Slowing Down: You might continue working in your field at a slower pace. If you own a business, often that means selling and working as a consultant.
- Shifting Focus: Perhaps you stop working entirely to focus on family or charitable causes.
- Pursuing New Ventures: This could involve ticking off those trips that have been on your to-do list for decades.
The Goal: Freedom to focus more on people and experiences rather than possessions.
My Personal Journey
My wife and I set a lifestyle finish line early, which allowed me to reduce my hours in financial services and coach college tennis. What began as a one-year experiment turned into over 20 years! I was even able to “retire” for a season to do volunteer work. Now, I’m back working part-time at Alterra. I often joke that I still don’t know what I want to be when I grow up, but I love having the childlike excitement of exploring what’s next.
The Path to Your Financial Finish Line
The journey to your finish line should be meaningful and enjoyable. Seek advice from those who are a step ahead to learn what to do—and what not to do. Remember to write your plan in pencil, not pen; you can try something for a while and change it if it doesn’t fit. Some of my best lessons came from trying new things and then adjusting when they didn’t provide the right life-giving fit.
Why Are We Talking About This as a Wealth Management Company?
We talk about this because we care about helping people live fulfilling lives and leave lasting legacies. We also know that a truly fulfilling retirement requires far more than simply having enough money in the bank. It’s about a building a life and legacy you love, then using your wealth to help achieve that goal!
Ready to Start Planning? If you’re unsure where to begin, consider reaching out to learn more about How We Work! Let’s work together to find your financial “enough” and design a path to a fulfilling life.
Craig Hamilton
Strategic Advisor
About the Author
With over 30 years of experience as a Certified Financial Planner, Craig Hamilton joins Alterra as a sort of paternal figure and has a position of respected “special counsel” to the firm. This role is likely familiar to Craig as one of his four children is also a financial advisor. Mr. Hamilton is also a Certified Public Accountant with a degree in Business from Pacific Lutheran University in Tacoma, where he graduated magna cum laude.
Craig was born and raised in the Pacific NW and built a family here that now includes seven grandchildren. In Craig’s words, “coaching, counseling, and mentoring are in my DNA.” This approach also characterized Craig’s financial career for 20-plus years as an Investment Officer for Russell Investment Services and their later incarnation as The Threshold Group. Throughout that time, Craig approached financial planning as “a critical tool to manage financial priorities and achieve a client’s dreams,” a philosophy perfectly aligned with the Alterra approach.
Craig took an early interest in all things financial — purchasing his first security while still in elementary school. Given his history, it’s not surprising multi-generation investing and legacy planning are his special interest. Listening to the stories of his clients and then helping them along the path to their goals brings Craig personal joy. So, it will likely come as no surprise that Craig was also a college tennis coach for over 20 years. To repeat Craig’s catchphrase, “coaching, counseling, and mentoring are assets” that he will invest in Alterra Advisors.
The “Alterra” name was coined by joining the Latin roots “alter”, the origin of the word “altruism” with “terra” meaning earth or land. This name reflects the company philosophy of “clients before profits” and providing firmly grounded advice.