Why Everyone Needs a Financial Quarterback

Why Everyone Needs a Financial Quarterback

I’ve always loved sports – playing, watching, and understanding sports has always been a hobby. From my earliest memories, our family journeyed to various sporting events. One of my treasured memories was going to Atlanta to see Dale Murphy play for the Braves. He was my favorite player, and he did not disappoint in live view as he hit two home runs.

I’d argue that few things teach more about life than sports. You learn submission to authority, how to play as a team and work with people you like (and don’t like) to accomplish a greater goal. One of my greatest joys has been transitioning from being a player to being a coach. It’s a total gamechanger: who plays where, who bats when, and who attempts to explain the win or loss. It’s a blast, but being a coach comes with an enormous burden.

Think of your finances: Who is the overseer? Is it you? If so, that’s okay for now, but what about when (not if) you’re gone? How can you best care for those you love most with your finances? By having a financial quarterback.

Learning to Delegate

I distinctly remember a watershed moment early in my career. As my client base grew, I found it harder and harder to proactively manage 1) their investments and 2) their overall financial plan. I needed to choose: Do I want to manage investments, or do I want to do financial planning? I chose the latter and have not looked back.

Part of my growth was learning to let go and delegate, not just within my business but with my own personal finances. For example, I used to prepare my own tax return. And, it used to be fun. But was that the best use of my time and resources? No. I freed myself by handing that task over to a CPA.

Think of head coaches. They love to coach players and positions. But as a head coach, you’re now in charge of the overall game plan. You must delegate tasks to your coaches. It’s not easy, but the great coaches learn to let go and chime in during the game only when needed (insert: Nick Saban).

What gives me great peace of mind is knowing my wife and family will be cared for when I’m gone. They’ll have a team of experts surrounding them to hold their hands throughout the process. What a blessing!

So, reader, do you have a financial quarterback to care for those you love most when you’re gone? I know… It’s hard to let go. But you must for the sake of a greater goal.

We’d love to talk with you about being that quarterback for you and your family. Schedule a meeting today.

Scott is the founder and a partner at Rivertree Financial Planning. Scott and his wife Helen currently reside in Jackson, MS with their three children Artur, Taylor, and Molly. They are members of Redeemer Church, PCA in Jackson.

Three Things You Can Do to Start Planning for Retirement

Three Things You Can Do to Start Planning for Retirement

To prepare for this writing, I just spent about 30 minutes updating my personal retirement and education savings plan. All the basic facts were there — it just needed some minor tweaking. As a nerd, it’s fun to track progress towards meeting our goals. But, being married to a sweet lady who defines “fun” differently from me, I understand we are all wired differently.

Maybe you or someone you know would like to start planning for retirement, but they don’t know where to start. Whether you’re a nerd or a free spirit, here are three things you can do to start planning for retirement.

1. Take Inventory

There’s no way around organizing what you have. For many, this step is the greatest fear. Why? It’s a reality check. Start with your most recent bank statements and other account statements. Soon to follow would be your tax return and other financial records. We have a one-page checklist that’s extremely helpful. Let us know if you would like to receive it.

2. Know Your Number

No, it’s not the balance of your overall retirement nest egg. I’m talking about the number it takes you to live each month. We have to use certain assumptions when developing retirement plans, such as inflation, rates of return, monthly savings, etc. But we would argue no assumption impacts the success of your plan more than minimizing this number. How do you reduce it? Have a plan to be totally debt-free when you reach your retirement age. We can help.

3. Work with a Professional

I know…but what about online retirement estimators? Sure. You can try it. But know that all aspects needed to develop a sufficient retirement plan are rarely included in these tools. For example, does the online calculator factor in social security maximization strategies, tax-efficient withdrawals strategies, realistic growth rates, etc. You may enjoy managing your own investments and do well with it. So maybe you need a fee-based financial plan to make sure you’re not missing any critical pieces to your plan.

I often say that there is only one guarantee when presenting a retirement plan: It won’t look exactly this way. Life happens, and goals can change. So then why plan? Managed money goes farther….period. As the late Zig Ziglar said, “If you aim at nothing, you’ll hit it every time!” Let’s aim at something. You might be surprised. Schedule a call today so we can help you plan for tomorrow.

Scott is the founder and a partner at Rivertree Financial Planning. Scott and his wife Helen currently reside in Jackson, MS with their three children Artur, Taylor, and Molly. They are members of Redeemer Church, PCA in Jackson.

Say “No” to Instant Gratification

Say “No” to Instant Gratification

I remember it like it was yesterday. When I was in high school, I worked all summer to save up enough money to purchase a brand-new Sharp VCR from Wal-Mart. I remember how I felt when I finally walked into the store and laid down my hard-earned cash to make the purchase. I can still smell the fresh Styrofoam as I opened the box. I had zero regrets because it was worth the wait.

I also remember the times I’ve made impulsive purchases. Something would catch my eye that I wasn’t looking for (perhaps an infomercial??). After making the impulsive purchase, the product or service didn’t satisfy the same and guilt would eventually follow.

The Missing Word

There’s a word that’s missing from many of our vocabularies in America. That word is “No.” Saying “No” has become increasingly more difficult as we are now the most marketed to culture in the history of the world. That’s a fact. What’s more amazing is how much more effective (and less expensive) advertising is. The ads are more targeted now. They know what you want, or might want, based on your web and social media activity.

And what if you don’t have the money to make the purchase? No problem! It’s just 49 easy monthly payments of $1.99. Wait…what the heck did I purchase? A pair of running shoes?? And how much interest will I pay over these four years? Who cares…it’s just $1.99 a month. I can do it (although often the interest on an annual basis is anywhere from 39% – 400%). And no, that’s not a typo.

My old boss Dave Ramsey is often pleaded to by his listeners to run for public office. He responds with his classic shotgun laugh. But for fun, they came up with some slogans. One was, “Change…You’re Not Going to Like.” Another was simply, “No.” These were in reference to our government’s out of control spending habits.

Insert “No” Moving Forward

I read a time.com article just this morning regarding debt levels in America at every age group. The article opens with “Americans have fallen back in love with debt.” The statistics are staggering. We’ve exceeded debt levels prior to the Great Recession…just by a little. Below is from newyorkfed.org:

Aggregate household debt balances increased in the fourth quarter of 2017, for the 14th consecutive quarter, and are now $473 billion higher than the previous (2008: Q3) peak of $12.68 trillion. As of December 31, 2017, total household indebtedness was $13.15 trillion, a $193 billion (1.5 percent) increase from the third quarter of 2017. Overall household debt is now 17.9 percent above the 2013Q2 trough.

So how can we appropriately respond to this? Take a look at your budget and spending habits. Where do you see “No” inserted? Perhaps ridding yourself of credit cards would be a tremendous step. And what about that tax refund being applied to debt payoff or savings rather than a car down payment? Small steps like this go a long way.

Think about people from just a few generations ago. Could they finance a couch? Of course not. If they wanted a sofa, they were forced to save for it and delay pleasure. Today, we can stretch payments over five years. And no, I’m not buying the “Same as Cash” deals. It’s not the same as cash. Over 80% of these arrangements result in interest payments of up to 39% going back to day one. They win. You’re not beating the system. That’s why they keep on doing it and stretching out payments for even more years.

Saying “No” is healthy vocabulary. We need it in all areas of life. Prayerfully consider where you need to say “No.” Your freedom awaits.

Scott is the founder and a partner at Rivertree Financial Planning. Scott and his wife Helen currently reside in Jackson, MS with their three children Artur, Taylor, and Molly. They are members of Redeemer Church, PCA in Jackson.

Giving Freely vs. Suffering Want

Giving Freely vs. Suffering Want

There’s a story about a rich man whose land produced an abundant harvest. He was posed with a dilemma as he already had more than enough, but he didn’t have a place to store these additional crops. His solution was to tear down his existing barns and build bigger ones. He even imagined what he’d say to himself once done with this work: “Self, you’ve done well! You’ve got it made and can now retire. Take it easy and have the time of your life!”

So how do think this story ends?

“God showed up and said, ‘Fool! Tonight you die. And your barnful of goods – who gets it?’ That’s what happens when you fill your barn with Self and not with God.”

If you’re a Christian, this story may be familiar as it’s found in Jesus’ parable in Luke 12:16-21. If not a Christian, you may wonder what does this story have to do with you? A lot, I’d say.

We’re often asked at Rivertree, “What do y’all (or “you all” for my northerners) actually help people do?” We may answer that we help plan for their retirement. Isn’t that contradictory to the story above? It could be if we left out some essential pieces of the full process.

One of these “essential pieces” is us asking, “When you retire, what are you planning to do with your time?” A myth is the joy of the “couch potato retirement.” Now there’s nothing wrong with relaxing more and catching up on some shows. But is that your full-time plan?

I’ve read a book about those who bought into this plan. Their main purpose became themselves. Sound familiar? (Reference paragraph 1). What does the book say happens to these folks? They die sooner than statistically expected. Why is that? They lost purpose. Is there a better way to “retire,” you might ask? We’d say so. Insert “generous living.”

“One gives freely, yet grows all the richer; another withholds what he should give, and only suffers want.”  (Proverbs 11:24)

Listen to Tim Keller’s reflection on this verse:

“The more you scatter your wealth, the more you gather it, and the more you try to keep it for yourself, the more it dissipates. How could that be? Think of farmers. The more they scatter seed, the more they will reap. And keep in mind that the seed comes back in better form, as harvest you can eat and sell. In the same way, spiritually wise people realize their money is seed, and the only way for them to turn it into real riches is by giving it away in remarkable proportions (cf. 2 Corinthians 9:6).

This is not a promise that the more you give away, the more money you will make. Rather the more you give away wisely to ministries and programs that help people spiritually and physically, the more your money becomes the real wealth of changed lives in others and of spiritual health in yourself. And you will be walking in footsteps of the one who was literally broken and scattered so he could gather us to himself.”

See the difference in self-living vs. generous living? It’s suffering want vs. gaining more. That “more” isn’t money. It’s joy.

There’s a quote from Randy Alcorn that has stuck with me: “The only antidote to greed is giving.” When we are tempted to clinch our fists around money (or build bigger barns), give it away. This breaks greed’s power, whether you’re a Christian or non-Christian.

Scott is the founder and a partner at Rivertree Financial Planning. Scott and his wife Helen currently reside in Jackson, MS with their three children Artur, Taylor, and Molly. They are members of Redeemer Church, PCA in Jackson.

What Can You Do

What Can You Do

I hope you had a nice February. If you live in Mississippi, we had our usual volatile whether. You may need snow gear one day and a swimsuit the next (slight exaggeration but you get the point).

Personally, this February is certainly one to remember as I had hip surgery. Fast forward to today, I’m doing well thankfully. I still have a journey of recovery ahead of me. But, to say it has been a joy ride would not be honest of me.

I had a close friend stop by recently to check on me. He was gracious to listen to me share how hard things have been. We all need folks to just listen sometimes, right? And sometimes, we need a friend to challenge us.

After hearing me share about the things I couldn’t do right now, he asked, “What are things you can do?” I paused. That had certainly not been my focus. I reflected on his question that night and the next morning. I started thinking about not just things I can still do, but what are new things I can do? I mentally came up with a long list and took action on some immediately. My spirits were lifted and some contentment returned.

I’m not writing a message about the “power of positive thinking,” but I am challenging myself, and you, to reflect on this question: “What are things you can do?” More specifically, “What are things you can do to make progress financially?”

With financial planning, there are many aspects that we can’t control and are forced to use some assumptions: inflation, rates of return, life longevity, etc. However, there are many aspects of financial planning that we can control.

What are steps that you can take TODAY to-

  • Begin a debt elimination plan?
  • Implement a budget?
  • Call the lawyer to get your will completed?
  • Increase your life insurance coverage?
  • Increase your charitable giving?

Don’t be overwhelmed by this list. Prioritize. Need help taking steps and prioritizing? That’s exactly what we do. Give us a call. We’d love to help.

Spring is just a few weeks away which I always welcome (well, minus the pollen). Spring is a time of new life, and it can be a time of new hope and purpose.

Take a few new steps and see what happens.

Scott is the founder and a partner at Rivertree Financial Planning. Scott and his wife Helen currently reside in Jackson, MS with their three children Artur, Taylor, and Molly. They are members of Redeemer Church, PCA in Jackson.