My favorite group growing up was The Beatles. I remember
listening to (and loving) so many of their songs. Thinking back, it occurred to
me The Beatles wrote a few tunes about the topic of “money”. See, you thought
The Beatles had nothing to say about financial planning and this would be a
corny article. In fact, they said a lot about the topic.
“Money can’t get
everything, it’s true, but what it don’t get I can’t use”…..is a famous
line from the song “Money”, a Beatles cover written by Barrett Strong. So while
it is true that money can’t buy everything, good financial planning and sound
investing can help what you have go further and improve your lifetime financial
security. In fact, a study done a couple of years ago found that people who
work with a financial planner significantly improved the odds of achieving higher
income during retirement, potentially by as much as 40% higher income*. Doing a
financial plan has many benefits including better organization of your
financial affairs, better discipline and goals for savings, and a disciplined
investment strategy. All of these factors play an important role in improving the
odds of financial success and greater lifetime financial security.
“Taxman”, written by George, is a searing criticism of the
tax system in England in the 1960s (in which the top rate could reach 98%). Fortunately
for us in the U.S., we do not have to face tax rates they did in England in the
1960s. But taxes are very important from a financial planning standpoint. Good
tax management can have a significant impact on one’s life savings and the
success or failure of a financial plan. A comprehensive tax analysis is an
integral part of any financial plan we do for a client. A thorough tax analysis
provides us and the client with ideas and avenues for reducing taxes or
pursuing strategies that may preserve capital in an estate.
“When I’m Sixty Four” was a fun, (obviously) McCartney tune
written about an idealistic retirement some 40 years hence. Most people hold an
idealistic vision for a comfortable retirement. Financial planning can greatly
improve the odds of achieving a comfortable retirement. By analyzing one’s
expenses, income prospects, assets, and financial goals, we create
plans/projections that provide clients with a much clearer vision and improved
probability of achieving those goals. Like the song implies, it has to do with
looking forward in many cases multiple decades. The process best starts in the
30s and 40s and goes a long way in improving the odds of having more “money” in
retirement and greater peace of mind knowing one has a plan to improve the
odds.
* “Working With An Advisor Important To Retirement Savings”,
Financial Advisor Magazine, April 25, 2013
