When I got into this business, I had just finished my CFP education and was eager to apply all my new knowledge.
I would present all sorts of different scenarios.
I would try all sorts of new strategies.
I would “customize” everything.
But a decade and a half in and I can tell you that was newbie thinking.
It might shock you to know, I now make very, VERY few decisions.
After 16 years, there are very few financial situations I haven’t seen. That means I’ve charted the right path 100’s of times.
We might customize the trim, but our recommendations have already been formed.
– Max out your long-term disability
– Funny Money shouldn’t be more than 10% of your liquid assets
– You need an estate plan if you’re in California
– Always get a 30-year mortgage
– Keep 6 months of living expenses liquid for an emergency fund
– Diversify all of your company stock as soon as it’s yours
The list goes on and it’s long.
Those heuristics are the baseline recommendations and when we “customize” our advice it still rhymes with those baselines.
The fun part about working from rules-based financial planning is that most of our Members develop the same heuristics over time.
(Some of our Members are even considering getting into financial planning.)
As you make your own financial decisions, chart your own atlas and as it grows, you’ll be to ratchet up to higher levels of financial literacy because the basics will be so engrained you don’t need to think about them.
