The Best Laid Plans

I have been thinking a lot lately about the plans we make and unforeseen events that throw a wrench in those plans.

This played out recently in my family. My son recently turned 4 and I had spent weeks planning his Super Hero themed birthday party. I ordered the invitations, mailed them, secured the location, planned the food, cake, and assembled the treat bags.

We were all so excited.

Then the night before the party I came down with a virus that had been making its way around preschool. I was too sick to go to the party.

While I was extremely disappointed, all of the advance planning I had done allowed the party to go off without a hitch and the only last minute instructions I had to give my husband were to bring the treat bags and the camera. All of the advance planning I had done allowed everyone else to still enjoy the party while I stayed home to rest.

Obviously a child’s birthday party is small potatoes compared to planning for retirement or a college education, but the lesson is the same. The more advance planning you can do, the less you leave up to chance at the last minute.

Adjusting When Changes Happen

When constructing financial plans we try to make recommendations that will give you the best long term odds of success because we know that nothing is certain.

Life is going to change.

People are going to get sick, you may need to retire earlier than planned; caring for children or aging parents may reduce your income potential. These life events can either implode your financial plan or be a minor setback depending on how well and how long you have been planning, saving and investing.

Getting started early, living below your means, and implementing a prudent savings and investment strategy give you the best odds of success that you will achieve your goals over the long term.

Better Than Expected

Of course so far I have only mentioned things that can go wrong.

There may also be pleasant surprises along the way that will improve your long term picture such as promotions, investment gains or inheritance.

Having your financial house in order when one of those things happens allows for much greater flexibility and options than relying on them to make your plan work.