Hello, I’ve felt like a kid my whole life, but I think that may have changed last week. I turned the big 4-0! Somehow in my head I feel like I can’t be accused of being a kid anymore. Time will tell. I feel fortunate because in my adult life I’ve felt that my life gets better and better with each passing year. One of the best things with age is the clarity you gain about circumstances, perspectives, and situations. Looking back, I see areas where I had come to believe things as fact that weren’t always so for me. Sometimes I trusted the person who told me what they thought to be truth, but in practice it played out differently. We went on a walk in the woods in between the rain last weekend. Amelia believes in being "prepared" for our walks with her backpack and water bottle etc.

Here’s a quick example. Financial advisors talk to other financial advisors. A common conversation goes like this: “Oh, you know December. We have the holidays and things just get slow.” This is normally followed by a justification about taking time off work, which is totally fine. We should take time off work and enjoy the fruits of our labor. But over the last three years we’ve kept the accelerator down just like we do in other months and we are just as busy as other times of the year. It’s easy to allow someone else’s justification to become our own excuses. I didn’t even realize it at first, because the other advisors I listened to had more experience than me. It’s only courteous to defer to the more seasoned pro. After all, I was just a kid, right? Amelia stopped below to make a map.

This recent lesson has reminded me of the importance of being discerning about who we listen to and how much stock we put in the source. Life has nuance and I realize the above example is silly but it was top of mind given the time of year we are in. Another area or reason things play out differently than we anticipated is sometimes the person telling us the information truly believed it to be accurate based on the information they were working with at the time. You may be able to see that this can happen with financial planning. Sometimes people’s lives change and they have a liquidity need or sometimes the markets turn south faster than anticipated or the markets may react differently than expected. Ansley stayed inside to do some painting.

We understand the sensitivity many people can have when it comes to their finances. Most of our clients have worked for 30, 40, or sometimes even 50 years to accumulate the funds that they have. Part of our mission statement and core values we have developed at our company is, “We value the trust our clients place in us to help them meet their financial planning needs, and we vow to never lose sight of always doing the right thing.” Part of doing the right thing is being realistic in our projections. Some advisors are interested in “beating the market” or outperforming the stock market. We don’t suggest this being the primary focus for most folks who are transitioning into retirement or who are retired. When we are trying to beat the market we have to be okay with the lowest dips of the market too. That can be heartburn inducing, especially when it’s time for distributions out of our accounts. Amelia's school had a Christmas tree lighting last week. She said she couldn't smile for the picture because she had to use the restroom... :)

One of the ways we honor the trust our clients place in us is by being judicious in our projections for how their accounts will perform. We often underestimate how their account should perform over time so that if things don’t go as we had planned we are not in as precarious circumstances. Why this matters is primarily for income planning purposes. We want to under predict and base our income numbers on lower than expected returns. Then if we overachieve it’s like the cherry on top. Thanks for reading. If you have any questions feel free to reach out at 864.641.7955. Until next week, David C. Treece, Financial Planner

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Clients Excel, LLC is an independent financial services firm that utilizes a variety of investment and insurance products. Investment advisory services offered only by duly registered individuals through Creative One Wealth. Creative One Wealth and Clients Excel, LLC are not affiliated companies. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified tax professional for guidance before making any purchasing decisions. Clients Excel, LLC is not affiliated with or endorsed by the U.S. Government or any governmental agency. Clients Excel, LLC has a strategic partnership with tax professionals and attorneys who can provide tax and/or legal advice. Published on 12.13.2023.