Skip to main content

New announcement. Learn more

Blog Articles

Mining70 is the new 50CashflowHaving enoughIFSOComplaintsNZ Super FundModern slaveryHuman rights violationsReal rates of returnRetirement planningTechnologyTech brosConsumptionBriberyCorruptionBubbleAustralian SuperAutomationSarvananPathfinderGlobal WarmingDeposit compensation schemeRates rebatesCommunityU3ARatesTariffsJonathon PainRon TempleDr pippaPortfolio constructionInvestment ReportingDisclosuresClimateEconomistMoneyworks ActivitiesS&P 500SmartphoneTech investingPodcastObliviaBenedictBurningRainforestsUsaTrumpOffsetting emissionsEmissionsDjiaIndexGabrielleDowns SyndromeAnalysisStock intersectionsHealthFitnessEducation seminarEvsTeslaTaylor swiftPharmaHealth careExerciseNvidiaMillieAIRPAAgingJewelleryScam investmentInvestment fraudInvestment fraudsScamsCyclonesFloodingInsurance premiumsInvestment managerArtesianOrgans on a chipManaging household moneyCouplesTravel insuranceTravel cardTravelPlastic WasteStewartCollaborative engagementBest Ethical Financial AdviserAwardHuman skinCrash test dummyAkzo NobelBieresdorfUnileverThe 3 R'sAnimal crueltyAnimal testingSyndicated propertyWholesale investorBreast cancer, mammogramGender diversityDiversity40:40 vision30% clubFemale leadersOutlookIndicatorsRecessionFossil FuelsWomenChildrenCyberVisaMagellanDEIDiversity, equality and inclusionGHG emissionsNet ZeroNorway Oil FundEngagementActive EngagementWealth protectionPasswordsBank of mum and dadBank loansBull marketReparationsVolunteeringB-corpGarden festivalCompensationClimate changeBuilding portfolioPortfolioBusiness as a force for goodB corpFinologyNanukPlasticPackagingEsg investingFear of missing outConfirmation biasBehavioural financeRetirement villageEsg ratingsSustainableWalking the talkProxy votingVotingAwardsBear marketEthical preferencesIndependent informationGreenwashingNastiesGMODonationsMindful MoneyRIAAWarEthicsAuctionImpact InvestingCyber securitySustainable InvestingResponsible InvestingMarketTimingCoronavirusCovidAiaCignaEthical investingEsgEnvironmentMoneyworksActivePassiveEPAProperty Relationship ActTax returnWearable DeviceArtificial IntelligenceUnderwritingDNA TestingGenetic TestDe Minimis ExemptionFair Dividend TaxForeign Investment FundTax ratesKiwiSaver feesChinaBrightline TestEQCAdvice FeesInvestment feesJunk InsuranceWarrantiesConsumer Guarantees ActRetirement IncomeNew Zealand SuperannuationBridgesFitness CoachingWellnessSally MellorInvestment PropertyTenantLandlordRental PropertyCar RentalCar InsuranceRelationship BreakupProvisional TaxBeanyAccountingTrust DeedBeneficiaryTrust ActTrustSkin cancerProstate cancerMelanomaLung cancerCervical cancerCancer mythsFirst home buyerOpinionFactsSwindlerScamTreasuryVolatilityDollar cost averagingFamily trustsResearchMilfordInvestor confidenceFMAInvestment assumptionsTerm depositsKiwisaver monitoringKiwisaver comparisonStress freeHolidaySecurityBanksTax refundRiskReturnInvestingGreedFinance companiesContents insuranceOwing moneyCredit cardCredit cardsPropertyExpertsBubblesBorrowingLendingFloatFixMortgageLoansInterest ratesFinanceBrokingLegislationForeign superWordingOmbudsmanHouseCoverContentsBalanced fundSchooling costsEducationCredit ratingsTradingSecondary marketTerminologyFixed interest investmentFixed InterestLegalGuarantorUk pensionPension transferSpendingChristmasConsumer behaviourUK Pension TransfersQROPsInvesmtentWays to dieInsurance claimsWinz#residential care#assetsTrustsResidential care subsidy#residentialcaresubsidy#gifting#familytrustsSavingsLottery#bonusbondsSpecific injuryCase stuffyTrust expensesEstate planningAsset protection#trust#family Trust#incomeprotectioninsurance#incomeAdriennes storyQuizLife expectancyLVR ratioHouse depositBorrowing to buy a house#firsthomebuyerKiwisaver returns#kiwisaver feesReitrement savingsFirst home buyersUncategorized#financialplanningPersonal financesFinancial management#personalfinances#mortgages#finances#fidelity#kiwisaverperformance#redundancy insurance#incomeinsuranceRetirement ageJohn KeyFirst home buyer withdrawalKiwisaver rulesFirst home buyer grantUnclaimed moneyMoney refundsPortability superBringing home KiwiSaver#australia KiwiSaver#liability#insurance claim. Insurance claim#income insurance protectionFirst home grantDumb ways to dieUnder 18 years oldTax creditTrans-tasmanPortabilityAustraliaAsteronRisk profilesMoving funds#changing kiwisaver managersInvestment returnsTibTerminal illness benefit#claim#sil#kiwisaver analysis#shares#mighty river power#electricity#partners lifeTrusteeSafety of KiwiSaverFunBeerCredit ratingBad debtTax rebateInvestment advice#retirement planningLapseExpensesFighting fundEmergency cashRipping off elderlyFinancial planingPass backUnit pricingGareth morgan#Medical Assurance Society#MAS#investment analysis#travel insurance#insurance claimFinancial planningBudgettingReporting#insurance commissionInsurance commissions#commissions#career in insuranceSouthern crossClaimingInsurance excessesRussiaJohn clarkeHumourGfcCyprusHome insuranceEarthquakesCrisisStand down periodPolicy wordingChurningContributions holidayTaxesPayrollEmployer contributionsEsctEmployee contributionContribution holidaySil kiwisaver. westpacKwiisaverBitAsset allocationAsbAnzAwarenessReturnsPerformanceProstate canerWillsRelationship PropertyPlanningLegal AgreementsLawyersDivorcePremiumsTowerFund ManagersFisherKiwibankDefault schemesBnzAMPPetsPet insuranceMoney managementBudgetsHouse insuranceFire and general insuranceAccChilds trauma insuranceChilds traumaProtectionFund managerClaim trauma insuranceTotal and Permanent Disablement InsuranceOnePath LifeClaimsSmokingSmokers ratesInsurance researchInsurance analysisImageFree quotesSavingMoneyInfographicInflationVideoTpd insuranceTPDSovereignDisabilityCase StudyAxaHeart attackLoveIncome protectionCancer insuranceBreast cancerTerranovaMinimum wageEmployer contributionTraumaIncome protection insuranceCancerSortedRisk profileRetirementOnepathInvestmentsWestpacBTWho can joinRetirement savingsFuneral plannerFuneralDyingDeathTrauma insuranceLife InsuranceInsurance News & ViewsInsuranceIncome insuranceHealth insuranceDisability insuranceUS citizenRetiring to live in new zealandInvestmentFATCAReturning to new zealandRetiring in new zealandMember tax creditKickstartTransitional residentTaxationRetiring to new zealandNew migratnFifFdrDe minimisSuperannuationRetiringNZ superannuationNew zealandEligibility for NZ SuperMorningstarInvestment ReturnInvestment performanceFund sizeFeesTaxPIRPIEMoney News & ViewsIrdMinimum contributionKiwiSaver News & ViewsKiwiSaverContributions1 April 2013
TAGS

What Do You Actually Want?

Most people start a financial planning conversation with a number in mind. A retirement age. A target balance. An income they think they will need. These starting points are useful, but they are rarely the whole story.

What you are usually working out, beneath the number, is whether you are free to live the life you want. Can you leave work you no longer enjoy? Can you stop when you choose to, rather than when you finally have no option? Can you spend on things that matter without a background sense of being irresponsible? Can you help people you care about without putting your own security at risk?

A good financial plan does not tell you what to want. Most people already know what they want at some level. What they need is help getting clear on it, someone to test whether the numbers support it, and the confidence to act on what they have decided.

The most common pattern: reluctance to stop

By far the most common thing we see is a person or couple who have done the work, built the position, and are privately wondering whether they can actually act on the decision they are already considering.

An engineer in his early sixties, no longer enjoying his work. He and his wife wanted to know whether he could stop before NZ Superannuation began. The modelling showed they could, with room to absorb ordinary variability. He left as planned. He also picked up some contract work he found interesting, but at no point did the household need that income to make the plan work.

A man in his late fifties, unhappy at work, considerably younger than the traditional stopping point. The plan showed the household would be fine without his current income. A year later he was doing work he enjoyed, which covered living costs and left room to keep saving. The move worked better on almost every measure than he had expected before the plan was written.

The consistent lesson is that the confidence to stop rarely comes from thinking harder about the numbers alone. It comes from having someone pull the numbers together properly and confirm what you are already sensing.

When the plan says not yet

Not every plan produces the answer people are hoping for. Some show that another period of work is required, or that spending needs to adjust, or that a comfortable outcome depends on decisions the couple have not yet made together. Being told that clearly is more useful than continuing without knowing.

One couple we work with thought they were close to being able to stop. The modelling showed the plan worked, but depended on the higher earner continuing for several more years and on spending staying within the pattern of the previous twelve months. The larger value of the plan turned out to be elsewhere. It revealed how much was going out on family support without either of them fully seeing the shape of it. They are now looking at that spending together and making joint decisions about it, which was not the case before.

The reluctance to spend

There is another pattern we see repeatedly, and it gets less attention. Many people find it very difficult to start spending the money they have carefully built up, particularly to take a lump sum from a portfolio for something specific.

The maths is not the barrier, because the plan has already confirmed the purchase fits. The barrier is thirty or forty years of saving discipline, which does not switch off the day the pay cheques stop. Part of what an adviser does at that point is walk people through the mechanics and remind them, more than once if it takes that, that the money was saved for exactly this.

Starting earlier

The value of financial planning does not begin close to retirement. It begins much earlier, and the earlier it starts, the more it can do.

For someone in their mid-thirties, a plan is about the shape of the next thirty years and the small choices that compound over time: contribution rates, portfolio structure, how debt is used. For someone in their forties, the questions sharpen: is the trajectory on track, where are the levers, how far do they need to move? For someone in their fifties, the horizon is close enough to plan against specifically and far enough away to allow real adjustment.

Clarity earlier is worth more than clarity later. Flexibility is far easier to preserve than to recover once it is gone.

The white paper

Our white paper, What Do You Actually Want?, goes through all of this in depth: the three forms of unease we see repeatedly, the situations where the plan says yes and those where it says not yet, what values-based investing looks like as part of a plan, and how financial clarity changes what people feel free to do now, not just at retirement.

If you have found yourself running a private cost-benefit exercise about whether you could stop, slow down, or make a change, it is probably time to put the numbers on paper properly.

Download the white paper at the link below.



 

This product has been added to your cart

CHECKOUT