Understanding Goals in Financial Planning

Time To Set That Goal?

Have you been to the gym in January? It is always packed this time of year. But, if you give it a few weeks, the gym is generally just as empty as it was in December. Why is that? 

In our society, goals, accomplishments, and success are glorified. Is that a bad thing? No. But, sometimes, we idolize the wrong things regarding goals. We focus more on the concept than the substance. 

I am a proponent of achieving goals and always have been. They are essential for progress and the advancement of organizations and society. The problem isn't with setting them; the problem is that people don't always understand them. They often confuse them with dreams and sometimes simply the desire to follow social norms.

Is It Your Goal?

Let's keep on going with this gym membership example. Something else has to happen before the rush to the gym in January. Countless people feel they need to lose weight, have a better and healthier lifestyle, or follow the crowd in their ambitions. But why does this happen in January?

There is nothing magical about January 1st. At any given second, the earth has just completed a full rotation around the sun one year ago from that moment. Yet, everyone seems to feel compelled to follow the crowd. 

So, what changes? 

There is a common practice of creating goals to start the year off right. And one of the most common goals is to improve health. Some people want to make positive changes for their health. But many others jump in half-heartedly because of the culture of goal setting. 

A similar thing happens when we talk to people about retirement planning. The question arises, "What would you like to do during retirement?" Like the predictability of gym-goers in January, one of the most common answers to this question is, "I'd like to travel." 

Is it wrong for people to want to travel? No. But all too often, the underlying reason for this answer is the same as why many people start working out in January. The point is not about travel. 

The point is that people often decide to follow the crowd, even if that is not what they want. It is tough to visualize the future. It is easy to follow what everyone else enjoys when one doesn't know what they desire.

What Do You Want?

Striving to accomplish goals is a very noteworthy endeavor. My belief in setting and achieving goals led me into this profession in the first place. The problem is many people fail to complete a step. 

Many people look at society and feel there are expectations about what they should want. 

You don't have to feel like you need to hold hands with your significant other at the beach, looking across the horizon to have a successful retirement. You don't have to set a goal to lose weight just because the first day of the new year is a day away. 

There's something that rings true with everything you consciously do in life. You decided you wanted to do it more than the alternatives. Eating a donut instead of a salad doesn't mean you don't want to be healthy. You wanted the donut more than the alternative.

A key aspect of retirement preparation is assessing what you value in life. It is essential to take the time to consider what truly matters to you. Putting off retirement savings until you have fully identified your values is unnecessary. However, understanding what is important can give you a stronger sense of direction and purpose.

How Does This Relate to Financial Planning?

If you decide to retire, you will wake up on the day of your retirement, and the sun will come up just as it did the day before. You will be the same person you were the night before. 

No retirement fairy changes your life overnight. You will be living a continuation of the life you lived before retirement. Retirement is generally a phase of life rather than the end goal. You simply move into that new phase of life. 

Life changes over time, priorities change, and goals change, too. Core beliefs and values generally don't change as often. Pay attention to what you value, what is important, and what you want from life. Financial planning can help you fund your goals and fulfill your unique desires in life. 

You should plan your life, set your goals based on your desires, and save the needed capital to fund the life you want. And, if you desire to hold hands with your significant other and look into the distance on a beach for retirement, I won't judge. 

I am driven to help people accomplish their goals through effective goal-setting practices. As a professional in the industry, I specialize in providing education and investment management services to retirement plans. 

I have found it's natural to have questions about the specific details of retirement planning, like whether to go with a Roth 401(k) vs. pre-tax savings. But taking a step back and evaluating the bigger picture before diving into specifics is crucial.

People would be more motivated to contribute to their employer-sponsored retirement plan if they had a clear picture of what it provides them in the future. People would be less motivated to withdraw money from their 401(k) plan early if they could see what they are giving up.

Know Your Destination

Let me use a hiking analogy to make one final point. 

Imagine walking up a trail; you must know where you are going. What's the point of your journey if you don't have a destination? If you wander from the path, you can still reach your destination if you know your destination and have a map. 

Regarding retirement planning, defining your values, beliefs, and the causes you wish to support is crucial. Retirement is only one aspect of our lives. Many goals in life require money to accomplish them. Finding ways to fund your life goals is essential.

Conclusion

Ultimately, how you spend your life is your choice. But remember, you are funding your retirement, not someone else's. 

Retirement planning is not just about the destination but also about enjoying the journey. So, focus on your outcome and create a plan that aligns with your values, beliefs, and goals. You can constantly adjust your plan as you get closer to your destination.

Financial planning is about being able to fund your goals and aspirations. It is tough to support goals and aspirations when you haven't determined what is truly important to you. Doing so can motivate you and inspire you to save today.

Talking to a wealth management professional can significantly impact your success. CUI Wealth Management can help you define your goals and create a custom financial plan to reach those goals. We can assess your investment options and help you create a strategy to achieve your goals efficiently. 

Our financial advisors based in Salt Lake City, Utah can help. Please click the scheduling link below to set up a time to meet with one of our advisors.