I will retire on May 30th after 27 years at HTG. This was a bittersweet decision because I have greatly enjoyed my work and have had the most amazing group of colleagues and clients who have enriched my life beyond measure.
For those of you who know HTG, you already understand the value the firm brings in providing expert, unbiased advice in a straightforward manner with a talented, experienced, and caring staff.
As I have done with numerous clients over the years, I have also prepared my husband and myself for retirement. And I have learned valuable lessons along the way. Here are some of those lessons:
A financial plan is essential.
To quote Lewis Carroll, “If you don’t know where you’re going any road will get you there.” Do you want to leave your financial future to chance? I think few would say “yes.” A financial plan is a jumping off point for highlighting your values and understanding your goals, both long and short-term. I wasn’t sure how things looked long term for my husband and me until we engaged in the planning process. This helped us set savings goals and understand where our money goes.
HTG’s advisors are skilled at helping clients with the planning process including getting organized, illuminating their vision for the future, and collaborating with them to devise a comprehensive plan to help them realize their goals. As retirement nears, this includes considering when to begin Social Security, the ins and outs of applying for Medicare, and managing portfolio withdrawals for tax efficiency.
Saving and investing cannot start too soon.
My husband and I were both married previously. Divorce isn’t typically financially friendly, and we knew we had work to do to catch up on saving and investing. We adopted the pay yourself first concept and made sure to contribute the maximum to our company retirement savings plans, and to set aside as much as we could in non-retirement savings and college savings plans for our two kids. A good starting goal for savings is 15%-20% of your net income. If you can do more, so much the better. Compounded returns add up nicely over time!
Create an investment plan to fit your needs and risk tolerance (and stick with it).
Saving is important, but investing your savings is critical and key to a successful financial plan. A well-designed portfolio will consider your timeframe for needing your funds as well as your comfort with risk and will be well-diversified. Proper diversification reduces risk, improves performance, and will help you stay focused on your long-term goals, thereby avoiding reacting to short-term market movements. There have been several economic crises during my tenure at HTG, including the dotcom stock crash, the 9/11 terrorist attacks, the subprime mortgage crisis, and Covid-19. Thanks to my training at HTG, I knew not to react to any of these events by changing my portfolio (because we knew our portfolio matched our long-term goals), and I advised my clients to do the same. In each case by staying the course, we were rewarded. Markets will rise and fall, but do not think you can time these movements. Market timing requires getting two things right: when to get out of the market, and when to get back in. Few have ever done this successfully. Having a plan in place will give you the fortitude needed to stay the course during the challenging times.
Plan for after you are gone.
Often ignored or put off, estate planning is too important to overlook. My husband and I were guilty of procrastinating on this exercise for a few years after we were married. In the end, thinking about it was much worse than just getting it done! Put in place your clear intentions of what is to happen to your assets should you become incapacitated and when you pass on. In addition to being financially prudent, it will help your heirs tremendously and will ensure that no one must guess what your wishes are. Failure to plan will create a ripple effect of calamity and confusion that can and should be avoided.
Remember to have fun along the way.
All this planning sounds like a lot of work and, I won’t deny that it is. But it is also rewarding, and you don’t have to go it alone. Work with an advisor who will help you every step of the way. Also, remember that you don’t have to wait until retirement to enjoy yourself (or your money). Consider setting small goals along the way that can help you stay motivated and committed to your financial plan. A financial plan can ensure that you enjoy yourself down the road as well as today. The results will be worth the time and effort you invest.
When I joined HTG on a chilly winter morning in 1998, we were a three-person team. Over the years, HTG has evolved into a comprehensive wealth management firm with a 14-person team of SWANs – Smart, hard-Working, Ambitious, and Nice – colleagues, each of whom truly care about every client and offer exceptional service with a wealth of experience and empathy.
Whether you’re young and your career is taking off, or are deep into your working and earning years, or are approaching retirement, take the time to understand your finances and hire a financial advisor who will help you on this journey. Better yet, contact HTG. You’ll be glad you did.