It took hours to assemble the tube slide for our backyard swingset. The sounds of my girls laughing and picturing them sliding down again and again made the task more than worth it. Imagine my surprise when our oldest daughter refused to go down the tube slide for about six months because she said it was “too scary.” Even watching her mom bravely go down wasn’t enough to persuade her. Financial issues can bring the same types of emotions. When unknown factors scare us, we can react by avoiding them all together.
Having a plan that specifically addresses some of the common fears or sources of worry, can help put you at ease and know that you will be okay. Most of these worries are far beyond our control, but we do have the ability to plan for them and see what position you and your family are in should they occur. A plan can give you an idea of would your portfolio be able to withstand a severe bear market? What if Social Security or pension benefits are cut? What happens if there is an untimely death or unexpected medical expense? Having a plan that runs through these simulations and gives a confidence score is invaluable for ensuring you are ready for the unexpected.
I was shocked this winter when we had a warm sunny day and my daughter climbed up the ladder and went down the tube slide for the first time. Now the biggest problem is addressing the common “one more time” negotiation when it is time to go inside. We can overcome our fears when they are properly addressed whether they are on the playground or pertaining to your financial security.
For a specific example of addressing fears in a financial plan, watch this one minute video below.
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