The Three Questions: Part II
by Gerald Townsend, Financial Editor

Last month I discussed the fact that the financial planning process starts with your individual, personal goals but truly knowing your goals – even yourself – is no easy task. How do we drill down deep into ourselves and discover what makes us tick?

The term “financial life planning” has been given to this approach of probing for the most heart-felt desires of a person and then implementing strategies designed to actualize those desires. George Kinder, a pioneer financial advisor and one of the key proponents of financial life planning, developed three key questions as part of the process of helping a client really drill down to their foundational truths.

Last month I introduced the first question, which was: Imagine that you are financially secure and have enough money to take care of your needs, now and in the future. How would you live your life? What would you do with the money or with your time? Would you change anything? Let yourself go and don’t hold back on your dreams as you describe a life that is complete and richly yours.

The instructions were to not just think about the question but to actually write your response. Also, if you are married, each spouse should have answered this question independently of the other. So, how did you answer the first question? What big dreams did you have? How about your spouse? How similar or different were your answers? Were there any surprises?

Many times, if spouses are totally honest with each other, there are some dreams that have either not been articulated before or at least have never been deeply explored with each other. Spouses should take some time to discuss their individual responses to the first question and also their spouse’s answers. If you are not married, consider sharing your response with a close friend or relative.

Let’s move on to the second question:  On a visit to your doctor, you learn that you only have five to ten years left to live. Fortunately, he tells you that you won’t ever feel sick, but that you will have no notice of the moment of your death. What will you do in your remaining time? Would you change anything in your life? How would you change it?

Again, spouses should answer this independently of the other and write their response. How does your answer to this second question differ from your answer to the first question?

Next month we will review both of the first two questions and then ask the third and final question.

Stay tuned...

Gerald A. Townsend, CPA/PFS, CFP®, CFA® is president of Townsend Asset Managment Corp., a registered investment advisory firm. Email: Gerald@AssetMgr.com.