As you’re reaching your financial goals and accumulating assets, the next step for many people is philanthropy. Here are a few things to think about as you sharpen your philanthropic focus.

A good first question to ask yourself when you’re thinking about giving is, “Is it more impactful for me to give time, money, or both?” This answer to this question is going to be different for everybody. Even if you’re in a stage of life where you don’t have the assets or income to give, you might still be able to give your time. The giving of time is very impactful for many nonprofits because they’re often shorthanded and have a bigger vision than the people currently involved can handle, so even just showing up can help.

For some people, on the other hand, the easiest thing to give is money. If you’ve already achieved your financial goals and have enough money saved for retirement, it’s easy to give above and beyond to causes you support. It might be worth considering whether you’re able to give money AND time so that you can see your money at work, because giving your time shows that you care about more than just writing a check. Nonprofits often do need money, but they almost always need time. As an added bonus, giving your time to nonprofits allows you to see the effect of your donations and the impact you have on your community.

Another thing you’ll want to consider is what you really care about. There are so many causes out there that you can get involved in, like animal shelters, your church, serving food to the hungry, volunteering with kids who’ve had a rough start, and many others. The question is, “what moves you on such a deep level that you’ll be able to fully give yourself to it when you get involved?” Where can you invest emotionally?

Once you’re financially set, it’s easy to just give money. But I challenge you to give your time as well, because then your cause of choice will see how much you really care, and you‘ll get to see the impact of your generosity in motion.

If you’d like to learn how to make your generosity more tax-efficient along the way, click below to schedule a meeting with one of our financial advisors.

Mike Tyson famously said, “Everybody’s got a plan until they get punched in the face.” So why plan when things are going to change anyway? Here’s our answer.

We don’t know what tomorrow’s going to hold, but it’s helpful to explore what you have to work with and what you want to shoot for. Even though unexpected medical events, family members passing away, sudden job changes, or other things of that nature are bound to happen, the planning process can help give you direction and solid foundation for when they do. Tax brackets and investment laws might even change, but having to recalibrate your plans is still better than not having any at all.

I’ve gone through the planning process with many clients whose life situations later changed, but the value I see them get out of the planning process can be really transformational for their families. Even when life does shift, they have confidence in the foundation than their plan gives them. Things may not go exactly the way they wanted them to, but they’re able to see what direction they can go instead.

There’s also a sense of gratitude that comes from looking at the resources and situation you have during the initial planning process. Lyndon has experienced this, too, with clients who were afraid of running out of money until they were able to look objectively at their financial picture. Financial planning can help you feel more secure in your financial future, which has allowed many of his clients to put their money toward living a more fulfilling life instead of holding onto it out of fear. Many people even learn during the financial planning process that they already have enough money for the rest of their lives if they manage it and invest it correctly.

Another benefit of financial planning, even though we can’t control what happens to us, is having a plan for what actions you can take over the course of your life. This sense of direction empowers us to make the most out of the life we’re given and live more intentionally. Even though we can’t actually predict what will happen in our lives and when, the sense of direction and feeling of control that financial planning gives is immeasurable.

The first step in our financial planning process is to get together and talk (for free) about your current situation and where you’d like to be, so schedule your introductory meeting below. Let’s get planning!

Once you’ve reached your financial goals—or when you’re tracking really, really well on the way to reaching them—what the next finish line for you? Let’s take a look at income- and asset-based finish lines and what you can do beyond them.

One book I’ve really enjoyed reading is God and Money by Gregory Baumer, which explains what two students learned while at Harvard about what to do with all they extra money they’d be making after graduation. In the book, the author lays out a simple matrix that I really appreciate.

The intention behind the matrix isn’t to tell you that you need to start giving all your money away once you reach a certain dollar amount; instead, it’s a framework for thinking about what’s next for you after you’ve met your needs, achieved your goals, and been generous to your family.

Is hoarding assets the name of the game for your family and future generations? For some people, it may be. But the rest of us know that hoarding money doesn’t help people as well as it could, and it keeps us from experiencing certain blessings as well as we could, too.

The matrix in the book is pretty simple:

What are investment objectives and why do they matter? 

Investment objectives range from being very conservative to very aggressive, and it’s a good idea to have one investment objective for some of your money and different investment objective for the rest. In this post, we’ll look at how these different investment objectives apply in different stages of life and in different situations. 

1. Capital Preservation

Capital Preservation is the most conservative investment objective and is used to prevent losing buying power due to inflation. This is a good approach when you plan to use your money soon, maybe for a house down payment or purchasing a car, because you wouldn’t have time to let your investment recover from potential losses.

2. Current Income

Current Income is an investment approach used to generate income for meeting day-to-day expenses instead of focusing on building long-term wealth. This is a good approach to use while in retirement.

3. Growth and Income

Growth and Income is an investment objective to utilize when you’ll need to use your money in the next 3 to 7 years. The focus in this approach is to generate current income while continuing to conservatively grow your portfolio.

4. Cautious Growth

Cautious Growth is a good objective for when you’ll need your money in the next 4 to 8 years. You’ll have enough time to let your portfolio grow and still recover from any potential losses.

5. Moderate Growth

Moderate Growth is a little riskier than Cautious Growth, which makes it best for when you don’t plan to use your money for another 7 to 10 years. This time frame allows for a higher risk tolerance because, again, you’ll have time to recoup any losses.

6. Aggressive Growth

Aggressive Growth is a riskier approach, but it can allow for much higher returns than the more conservative objectives. If you’re certain you won’t need to use your investment dollars until 7 or more years down the road, then this is a great approach for maximizing your growth. If you’re not planning to retire for another 30 years, you’ll be able to accept the full risk of market in a way others can’t.

7. Speculative Growth

Speculative Growth is the riskiest way to invest your money, and we wouldn’t recommend this approach until you already have enough money invested elsewhere to meet all your goals. Speculative investing can yield an extremely high return, but you’d have to be okay with never seeing this portion of your money again.

Overall, the biggest thing to keep in mind with investment objectives is that you shouldn’t have all your money working for you in the same way. You’ll have different goals as you go through different stages of life, and you’ll want to find the balance between meeting those goals and taking on the right amount of risk so that your money can work for you.

A lot goes into creating a financial plan that reaches your goals, and you don’t have to figure it out alone. Click below to schedule a meeting with one of our Certified Financial Planners today.

If you’ve ever said, “Don’t spend any more money until I get paid on Friday,” then you’ve been living to paycheck like 78% of Americans. Being broke is normal, but it doesn’t have to be. If you’re sick and tired of living that way, here are 5 steps to help you stop the cycle of living paycheck to paycheck.

1. Get on a Budget

A budget is simply you telling your money where to go instead of wondering it went. Each month, you figure out how much income you’re going to have that month, and then you plan for how you’re going to spend or save every dollar. Then, during the month, you track your spending and your income and make sure you’re staying on that plan.

2. Stop Borrowing Money

Borrowing money just makes your future more difficult. Basically, you’re borrowing from your future. And it makes it even more difficult to live within your means in the future months. If you struggle with credit card debt, then it might be time to get rid of your credit cards. Chop ‘em, shred ‘em, throw ‘em in the fire—whatever it takes, just get rid of them. And don’t forget to close the accounts, too.

3. Sell Some Stuff

That stuff you have laying around the house that you don’t need? That you don’t even want to have around anymore? Sell it, and use that money to create some emergency savings or to pay down that debt.

4.. Get a Temporary Job or Side Hustle

Sometimes, the problem isn’t that you’re spending too much money, but that you just don’t have enough income. So while you’re trying to get a promotion and a salary increase, find a temporary job to get some immediate income. Remember, it’s just temporary. It’s not like you’re going to be working two jobs forever. 

5. Live Below Your Means

The underlying problem for you might be that you’re overspending by living above your means. Stop trying to keep up with the Joneses—they’re broke, and you don’t like them anyway. Stop spending money on things you don’t really need just to look good on the outside.

You don’t have to live paycheck to paycheck. Breaking the cycle can be difficult, but it will help you regain control of your finances and your life. My name is Lyndon and I’m a Ramsey Solutions Master Financial Coach. If you want help working through this process, give me a call at 316-535-0750 or schedule an appointment with me below.