Saint Patrick's Day. Who doesn't love it. Big parades, festive happy hours, and the almighty Shamrock Shake (although there's a better chance you find a pot of gold than a McDonald's with a working ice cream machine).
When I was a kid I would always wake up on Saint Patrick's Day with some "prank" pulled on me by a "leprechaun". Socks all tied together. Toilet paper all over the playroom. You get the picture. Basically like if Santa Claus was having a bad Christmas and decided to destroy your house instead.
Thinking back, I really respect my parents for doing that every year. They purposely messed up their own house just to give me a laugh, and then they would have to clean it all up. Talk about dedication!
Anyways, there is one image that is synonymous with Saint Patrick's Day. The pot o'gold at the end of the rainbow. The thing those pesky leprechauns are all trying to catch (right after they sneak into my house and tie all my clothes together). Who hasn't looked at a rainbow and wondered if the myth could really be true?
I haven't been to the end of any rainbows recently so I can't confirm or deny. But I believe we each have our own "pot of gold" that we are trying to catch. Saving up for the next big vacation. Funding your children's college education. Ensuring you have sufficient assets to be able to retire at your desired age. These are the pots of gold that we see our client's trying to capture.
Now, if you're a leprechaun, thinking about that pot of gold is the easy part. Actually getting to the end of the rainbow and finding it is what is tough. Rainbows aren't popping up right at your feet. You would have to navigate mountains, rivers, and terrain to get to it. But if you had a plan and a roadmap to get to your desired location, it would probably be a lot easier. See where I'm going with this yet?
We can all rattle off financial goals that we want to accomplish, like the ones listed above. But without a financial plan in place, we are unlikely to be able to accomplish them efficiently and effectively. It is important that you sit down and develop a plan to get you to where you are going. The process isn't always easy! For example, if you want to determine how much you are able to save each month, you would need to start with mapping out your budget. This can be a difficult and emotional process. People often want to avoid addressing how much they spend and what they spend their money on, as it can make them feel embarrassed or even guilty. But it will give you peace of mind, and you can then determine what to do next to get that much closer to the pot of gold you are seeking.
Just like rainbows are always in different locations that require multiple roadmaps, each individual will have a unique financial situation that will need tailored to meet their goals. No two people, or plans, are the same. A financial plan needs to be designed so that you can meet your specific wants and needs. There are many different types of financial strategies that you hear about that will supposedly accomplish your goals. But just because it worked for neighbors Tom and Susy down the street, doesn't mean that it is the right fit for you! Your financial plan should answer questions on what YOU want to accomplish. How much should you save to your 401(k) Plan? Should you make Roth or Traditional IRA contributions? Should you use a 529 plan to save for your child's college education? Do you need more life insurance? These are only a few questions that will have different answers for different people. Your own financial plan will map out the correct answer for you.
As you prepare to celebrate Saint Patrick's Day (and see leprechauns chasing pots of gold), I encourage you to think about what you are doing to catch your pot of gold. Certified Financial Planners such as myself and my business partner Ben Montgomery can help design your plan so you can find the end of the rainbow that much easier. Slainte!