Published: January 11, 2007 05:46 pm            

Wealth Choices: Determine the true meaning of money in your life

Originally published in the January 12, 2007, print edition.

What is the purpose of money in your life?

Whether it is the newspapers, television or the investment industry in general, we have gotten caught up in the idea of believing the heart of financial planning is insurance, the stock market, retirement, long-term care, etc. While all of these things are important, they are really secondary to the true meaning of money.

The true meaning of money starts with what is most important to you.

What do you care about most? What are the things you stand for? In other words, what are your true values? Think about it; is there anything more important than your values? The places we live, the relationships we have, the areas in which we focus on are all affected by our values.

Values are intangible desires that describe who you are. Things such as freedom, security, happiness or the desire to make a difference in the world are evidence of your values. For example, to travel is a goal, but the reason you like to travel is to experience freedom and happiness, which are values.

Take a moment today to write down the values that are most important to you. Once you have a crystal clear picture of your values, you will be motivated to take action. It will be much easier to decide what types of things you want to accomplish and will help you stay on track when faced with buying decisions.

Money can be fulfilling only when you have connected it to what is most important to you. This will ultimately determine your financial happiness and satisfaction with your life’s work.

After you have determined what is important to you, you will need to organize and communicate your plan. To keep things simple, I suggest breaking your plan down into smaller plans that identify each area of importance. It may look something like this:

Professional plan

Ask yourself the question, “What do I want to accomplish in farming?” What are the services you want to have that will influence the farming industry? How can you bring value to the people in your community through farming? What are your plans for business succession?

Many people are structuring partnerships with their children to carry on the farming tradition within the family. Asking yourself these types of questions and writing them into your plan is important to your career.

Retirement plan

Someone once told me, “Don’t retire, refire!” This is the perfect time to set some exciting goals and regenerate yourself. How do you want to spend your time during these years? With whom do you wish to invest your time?

Maybe you have always wanted to join a club or volunteer for an important cause. This is a time when you can do more of what you want to do and less of what you don’t want to do. You can have the freedom to choose when you want to do something, with whom and where. Retirement will mean different things to different people. All of which can be identified with knowing what is most important to you, your values.

The next step would be to determine the best way to fund retirement. It may be saving more money now for later through various investments, staying in farming part time with the family, consider selling part of the business or a combination of all these. The options are many, but you must determine now what course of action you will take to achieve your retirement plan.

Care plan

Do you have a plan for taking care of yourself as you age? We all understand that aging is a natural process and as time goes on we will all need help. Who and how will that help be provided?

Long-term care is a viable option to consider. These policies are meant to provide you with assistance for daily activities that may be difficult to perform on your own. They typically will cover extended stays in a nursing home or an assisted-living facility.

If long-term care is not for you, what is your plan? Will you have your children take care of you? If so, be sure they are in agreement. If you are unsure about making a care plan, ask someone to help you take control.

Exit plan

When it is time for you to leave this Earth, will you have made arrangements for your family and friends? A legacy will be left on your life when you leave. Will people stand up and cheer for your life or will they have to clean up a mess that was left behind? When you die is there a plan for your estate?

Be sure as you coordinate your estate that you have an independent professional talking with the team of people who handle your finances. For example, you may have a Certified Public Accountant for your taxes, an attorney for your wills, trusts, powers of attorney, etc., an agent for your insurance and a broker for your investments.

Many times all these parties are never in contact with each other about an estate plan as a whole. You need to be sure all products in their own right are working toward the common goal. That goal being your estate plan. This is why a coordinator or administrator is essential.

Legacy plan

We were created to have an impact on people in our lives. What are the things we have done to create meaning with others? A legacy plan is like a treasure chest. Here are four things to include in your treasure chest:
• Memories
• Mementos
• Monuments of Faith and Character
• Money

All of these will provide evidence of what mattered most to you and what you stood for.

With the start of a new year many resolutions have been made. Have you been telling yourself that you need to get your life in order?

Determining the true meaning of your life and writing out a simple plan is a great way to take some action. May 2007 bring you a sense of peace as your life’s mission is laid out with clarity.

        

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