What Would Your Client Do if They Did Not Need To Work?

Financial planning can never get enough client attention. Some might think of it primarily as retirement planning. They rationalize retirement is a long way off. Others buy a lottery ticket and are despondent when they do not win. Some people like their jobs. Others do not. Some are concerned job security isn’t what it was in their parents’ or grandparents’ day. These concerns can lead into another aspect of financial planning.

No one wants to be miserable, yet many people are unhappy with their present situation. Years ago, I heard the expression “What would you do if it was guaranteed you would nor fail?” Inspirational as it sounds, it comes with unlimited downside. Your client might have always wanted to quit their job and open a restaurant. National statistics show about 30% of new restaurants close in the first year. (1) It might be better for your client to sit tight.

“Selling” retirement planning is difficult because retirement can seem so far away, especially if you are young. “selling” financial independence is much more attractive. The title implies it could happen earlier in life than retirement. A practical way to position the objective is to imagine a time when working becomes a choice, instead of a requirement.

Planning for financial freedom (or retirement) involves focusing in two areas: How much income do you need and how much income could your asset base and retirement income sources produce? The lower the first number, the more manageable it is to meet that need with a reasonably sized asset base.

Let us assume your client buys into the financial freedom idea, but this will not be happening anytime soon. There are external factors, but they are not always helpful. They might inherit substantial assets from their parents, but wishing them dead is more likely to get you cut out of the will. It is their money. It might get spent on expenses at a senior living facility.

How about today? Can your client indulge in their “What would I do if I did nor need to work” fantasy? My wife and I were on a transatlantic cruise recently. I found relaxing in a deck chair, reading in the shade, a delightful activity. I started to think about a world cruise! Wouldn’t that be great? Instead, I “disassembled the experience. What was I doing. Being in the open air. Sitting in a deck chair. Reading. We have deck chairs. We have outdoor space. We have books. This experience could easily be replicated at home, for an hour or two at a time. Can you drill down into your client’s dream, determining what they really want?

Your client might have an ideal “hobby business” or “retirement business” in mind. They might want to operate a bed and breakfast. Does your client have free time? Who do they know who owns a B&B? Could your client get a part time job there? They can get a taste of being in the business, without the expense of setting it up.

Does your client’s ideal activity involve further studying or licensing? It makes sense for them to learn if they can pursue this course of study through an adult education program. They would need the qualifications anyway. This might provide the opportunity to get some experience while working for someone else while holding down their primary career with it’s retirement planning and health care benefits.

There are a lot of dreams that don’t require waiting until you are retired and ready to embark on a second career. Some can be done on a small scale now. A key element to embrace is the focus on attaining financial independence.

Related: When Business Falls Into Your Lap ...

1. https://pos.toasttab.com/blog/on-the-line/restaurant-failure-rate?srsltid=AfmBOoq8w_zpycWOLRmK-BFdhgb27FHq0j3OWkugzs3LSEont2M6OOzY