Create the Ultimate Vision

We’ve all heard it.  The all-too-common phrase, “A picture is worth a thousand words.” When you look at a picture, clarity and meaning without words are there for all to see. Whether the picture is a gleaming child, a peaceful sunset, or a dream home, these images have a way of springing emotions to life.  We feel it. So if this is true, then is it possible that a picture can propel our goals, dreams, and aspirations into reality? People who have created vision boards for themselves say, “Yes!”     

Chase and Create

A vision board is a collection of pictures depicting the things which you long to achieve or acquire. It’s a collection of your goals, dreams and aspirations, the very things I have been encouraging you to “chase” and “create.”  In place of a list written only in black ink, creating a poster board covered with images and inspirational messages, will inject colour and meaning into your dreams.  At a quick glance, you’ll see your life’s plans on display as a daily reminder.  With mustard-seed faith, your dreams will magically transform into reality when you believe they are possible. 

To support this theory, the book, The Secret, explains the powerful process of visualization in this way.

“The reason visualization is so powerful is because as you create pictures in your mind of seeing yourself with what it is you want, you are generating thoughts and feelings of having it now. Visualization is simply powerfully focused thought in pictures, and it causes equally powerful feelings. When you are visualizing, you are emitting that powerful frequency out into the Universe.  The law of attraction will take hold of that powerful signal and return those pictures back to you, just as you saw them in your mind.”  

The Vision Board as a Remedy

Creating a vision board for your goals and dreams might go one step further.  I sense this process as a remedy to cure specific ailments.

1.     Overcome the FOMO epidemic.

Until recently, I had never heard of FOMO. Perhaps I had but didn’t realize the epidemic had a different name than the one that I knew.   FOMO, “the Fear of Missing Out”, is equal to what I’ve always known as “keeping up with the Joneses”. Marissa Sollows, Senior Education Coordinator, with Financial and Consumer Services Commission of New Brunswick, wrote an excellent article, Conquer Your Fears of Missing Out to Get on Top of your Finances. 

Marissa explains that FOMO, the Fear of Missing Out, is the physical and emotional reaction we have when we feel that we are missing out on an opportunity. FOMO can provoke strong emotions ranging from sadness to full blown anxiety. It can also make us feel unsatisfied with the experiences we have had and things we own.   Marissa goes on to explain that these strong emotions are heightened with the posts viewed on social media of our friends’ dazzling lives. 

The cure for FOMO would be to determine what you want and then create your vision board.  Here’s the underlying truth. “You can have ANYTHING you want. You just can’t have EVERYTHING you want.”  You have to figure it out.  A vision board will provide focus and clarity.  You will no longer be chasing someone else’s dream.  You will chase your own dream.

2.     A Change in Direction.  

Life has a way of steering us in the opposite direction we ever intended to travel. A painful relationship, an unsuccessful business venture, and a sudden illness can send us spinning.   We aren’t given any clear explanations how this happens but when it does, we feel totally helpless and frustrated, leading us to believe that we may never be happy.  It’s at this junction that we have a choice.  Don’t you love choices?  We can choose to believe the worst that we were destined to live unhappily ever after, or we can choose to believe that the best is coming our way.  We can choose to believe that it’s our turn to have the very things our family, friends, and neighbors have.   And it all starts with believing and creating the ultimate vision both in our minds and on a vision board. 

Permission to Play and Create

Now that you have permission to play with glue, scissors, and paper, capturing and creating images of your life with pictures, you may feel lost. Don’t fear. Click here for a quick four-step guide to help create your vision board.   Don’t stop here. This is one opportunity you don’t want to miss out on.  A Google search will lead you to plenty of information on vision boards and its benefits.  I would love to hear the results of your creation. I invite you to share your thoughts, successes, and yes, even your frustrations with your vision board masterpiece.

Rebuilding Life One Step at a Time

 



No amount of financial planning can prepare you for the tragedies life can dole out.  Whether it’s the death of a loved one, an end to a relationship or marriage, your status can unexpectedly change from “We” to “I”. 

Friends of mine recently experienced a tragedy with the unexpected death of Paulette’s husband, Dick.   The day of his heart attack, the couple was preparing to celebrate their 50^th wedding anniversary and Paulette’s 70^th birthday with family and friends. A joyous celebration changed in a moment’s notice to grief.  The least expected happened suddenly without any warning.  In mere seconds, grief shattered plans and dreams of a life together.

I am not a grief counsellor so I can only speak from experience that you need time to mourn before you can move on. Time will be a friend allowing faith to heal the pain and rebuild a life with new dreams.

Ruth, a dear friend who lost her husband on the threshold of her 51st birthday, shared this quote.  “Grief never ends but it changes.  It’s not a place to stay. The sense of loss must give way if we’re to value the life that was lived.” {~~Lois Wyse}  Eventually, on your own terms, you will find new ground to map your path. You need to go on living because there’s still so much good you can do. 

In the interim, you have to be careful not to make sudden changes. Some changes can result in everlasting regrets, both financially and emotionally. A client remarried within a year of his spouse’s death only to realize that he wasn’t ready to build a new life with another person.

During times of grief, your vision may be clouded so be extremely cautious of well-intended advice. A client entrusted her deceased spouse’s insurance money to an advisor. The investment was inappropriate, resulting in a financial loss.  She felt devastated by both losses, the death of her husband and the demise of her investment.         

In the life-changing days of your new “I” status, move ever so slowly and cautiously. Muster strength to get through one hour and one day at a time surrounding yourself with family and friends for support.  Build a network of trusted professionals as discussed in last week’s blog, Building Your Dream Team. AND only when you are ready, use the worksheet below to define new goals for yourself.

There aren’t enough bandages to cover the wounds created by death or a divorce.  The healing begins as one pushes through the pain and sadness in those raw moments. I came across the message below which provided hope for a brighter tomorrow during my darkness days.  These same words may comfort others afflicted with life’s tragedies.    

“Faith, at the very least asks us to believe this.  The path to heaven runs through suffering.  Through the sorrow of the world, through that certain fog of doubt and pain, we have faith, sure of what we hope for, certain of what we do not see.  God is love. God is in control. God will wipe away every tear and replace it with a river of joy.” {~~Deforia Lane}

 



Building Your “Dream” Team

 

Do you have a dream team working to build your dreams?  You may assume you can do things on your own with a little help “here and there”.  If you think you don’t need a dream team, you may choose to re-think your strategy.  With help from professionals, you can move your dreams forward effectively and perhaps more quickly. 

 

A CERTIFIED FINANCIAL PLANNER^® professional acts as your GPS system to guide you in the right direction and identify areas which require attention.  Only by working together as a team with other professionals do big and little things get accomplished.  Someone once said that when Mother Teresa spoke, everyone listened. Even today, her profound messages ring true.  One of my fondest quotes from Mother Teresa paraphrased is “I can do things you cannot, you can do things I cannot; together we can do great things.”

 

Why is it important to rely on professional help?  Here are some reasons.

 

1.               Discovering effective strategies to accomplish our dreams may be identified by someone else other than ourselves. You’ve heard the common advice about getting a second opinion. When one effective strategy is put in place, we trigger a ripple effect for others. For example, when you can find ways to reduce your taxes, you redirect money to fund other dream ambitions.

 

2.               Knowing all the features and benefits of every financial product would be impossible.  We simply don’t know what we don’t know. Matching specific products to our needs is best discussed with an expert. For example, the most recent challenge is when it is suitable to use a Tax Free Saving Accounts (TFSA) versus a Registered Retirement Savings Account (RRSP)?  Again, the usual response is “it depends.” 

 

3.               Creating a smarter “you” happens when you seek advice from professionals.  A favorite proverb says, “As iron sharpens iron, so one person sharpens another.” We learn from each other.  “Book knowledge” is different when applied to real-life experiences.  Professed professionals learn from their clients’ circumstances and then pass on their experiences.

 

 

Financial Planning Wheel

 

With all the different aspects in the development of your financial plan, you need to engage others’ expertise.

q    A tax advisor needs to know the total amount held in registered investments in order to withdraw the money effectively. 

q    Having one investment advisor ensures investments are diversified so you do not face unnecessary market risk. 

q    An insurance representative determines whether you have adequate insurance to cover gaps in your coverage.

q    A lawyer designs your Last Will and Testament to safeguard your final wishes. 

q    A financial planner creates a picture with financial numbers to ensure you can retire with your desired income.

These illustrations are a sampling of the importance of hiring the “right people” to work with you to uncover the loopholes in your financial plan. When you engage the right professionals, you are in essence building your dream team to move your dreams forward both effectively and efficiently. 

Time for Review

I am certain you don’t need someone telling you how quickly time is passing.  One peek at the calendar shows just how close we are to the end of June which is a sign that half of 2016 has disappeared before our eyes. 

Like many corporate employees face mid-year performance reviews, this is a good time to review your New Year’s Resolutions. Remember the personal goals, dreams and aspirations you made at the beginning of the year.  Go ahead. Blow the dust off the list.  It’s time for review. 

It’s possible you didn’t get started or simply stalled on moving forward.  Now is the best time to reignite the spark. If you can’t find your list or can’t remember the things on your list, create a new one. If a corporation can set a different fiscal year-end so can you! Your personal fiscal year may run from July 1^st to June 30^th.  “New Year’s Resolutions” can be created any time.

Here are three ways to help motivate you into keeping your commitments. 

1.     Watch the video below, Start Saving Now.  You may recognize some do’s and don’ts to ensure you achieve your desired plans.

 

2.    Refer to the blog, The Five Strategies for Sticking with Your Financial New Year’s Resolutions for additional ideas.

 

3.    Lastly, repeat Step One and Two as necessary to charge your human battery so that you can create an everlasting commitment to follow through with your plans.
 

When the time comes for the next review, you will feel confident that you did your best.  You had a list; you created sound strategies; and you overcame obstacles. The best part will be that you achieved your dream, goal, or aspiration.  You can then expect the best performance review of your life.

 



Let’s Talk About Money

I grew up hearing many quirky sayings, “Children should be seen and not heard,” “Money doesn’t grow on trees,” and another one that sticks out is "God gave you two ears and one mouth, so you ought to listen twice as much as you speak."  Well, maybe that last one is not so quirky.  When you need to have the talk about money with your spouse and family, you need to do both, listen and speak, so that you are heard and understood.

I was privileged to be interviewed for an article published for Financial Planning Standards Council on this very topic.  Talking about money with family members is not easy but “not talking” is by far worse.  Without the important conversations, misunderstandings are bound to occur.  Dropping subtle hints about your goals and dreams or expecting others to read your mind are only wishful strategies on your part. It’s okay to be afraid but don’t let fear stop you from starting the conversation. Take charge. I hope you can glean some valuable information from the following article.

How to have “that talk” about money with your spouse and family

Is it time for ‘the talk’ about money?

Money is the last taboo – or so seems. It’s a sticky subject we just don’t like to talk about. But there comes a time when there’s simply no option left but to jump in and hash it out.

It may be asking for a raise, reining in an overspending partner, estate planning with aging parents, or teaching children about debt. Delores Moskal, a CERTIFIED FINANCIAL PLANNER® professional with Cornerstone Credit Union in Yorkton, Sask. cautions that no matter the situation, leaving ‘the talk’ for too long brings consequences:

• unrealized goals
• creditors at the door
• delayed retirement
• marital friction                                                                     

When a couple has different spending and saving habits, it can jeopardize financial security, leave dreams unfulfilled, and cause marital tension. Failing to discuss estate plans with parents can cause sibling strife and mounting legal fees after their deaths. And, allowing children to run up credit card debt and cell phone bills starts them on a negative footing before they even begin to face the many other challenges of adulthood.

So just how do you start a conversation about money?

It’s not personal, it’s business

When it comes to asking for a raise or negotiating a contract, check your ego at the door and take emotion out of the equation. You may have done a great job and deserve a raise, but you have to be able to back it up. Outline accomplishments and how they’ve contributed to the bottom line by saving money or generating revenue. Taking a business approach is more likely to bring positive results.

It’s all in the family

For families, it’s about having a reality check and discussing what-ifs, says Ms. Moskal. Most people don’t plan for the unexpected like job loss, the arrival of twins or a serious illness. Others haven’t talked about buying a home or sending children to university. These are all issues that need to be discussed and planned for early.

“A neutral, non-judgmental third party can help start the conversation,” she says. “Having a referee in your corner can help prevent arguments from escalating and help uncover the path forward together.”

A financial planner, for example, can take a holistic look at the situation and help families gain a better understanding of income and expenditures, establish mutually agreed upon goals, and identify areas where actions can be taken to achieve those goals.

The upside of having ‘the talk’?

• Relationships are more harmonious.
• Dreams are achieved faster.
• A career is more rewarding.
• And, you’re setting a great example for your children.

If you need a qualified professional to help open a conversation about money, FPSC’s Find a Planner or Certificant tool can help put you in touch with someone in your area. Access additional resources.

Top Six Reasons Business Owners Should Meet With A Financial Planner

 

 

“I take you … to have and to hold, from this day forward, for better, for worse, for richer, for poorer, in sickness and in health, until death do us part.”

This marriage vow can be easily confused with the verbal commitment many entrepreneurs make to their business.  I know how important your business is to you. After all, I am married to a farmer.  Whether you are looking to become engaged to a new business or are exiting a present business relationship, you face a huge undertaking.  When I heard Alison Anderson share her story about her newly-formed business, I was intrigued by her intuitive need to help others buy or sell theirs. I can confidently say that if you know someone who is looking to do either, buy or sell, you will want to point them to SuccessionMatching, a “dating service” which matches buyers and sellers.  Alison has graciously allowed her story to be reprinted at my blog website.

~ ~ ~

 

Six years ago I had a client at Community Futures who was looking for a way to sell his plumbing business without disrupting it in the process.  He knew it was going to be difficult to find a buyer while maintaining the strong working relationships he had with his suppliers, staff and customers. It occurred to me then that this was a problem many business owners were going to face in the near future. Eventually, it is a problem every business owner will face.

I decided then to take an economic development approach to succession planning and built www.SuccessionMatching.com to address this problem. We are an online platform that allows business owners to actively search for buyers while maintaining control over privacy. We also connect site members with economic development officers who can provide resources and advice on where to start their transition plans.

There are three types of succession plans: family transition, employee share ownership programs and third party sales. Over the past five years, I have facilitated many succession plans, gone on speaking tours, and worked directly with clients within all three types of succession plans. From these experiences I have documented trends and pain-points familiar to thousands of business owners who are going through the succession planning process. SuccessionMatching and Community Futures Saskatchewan have partnered to put together a free step by step road map for business and farm transitions:

http://cfguide.successionmatching.com/

It is important to involve the right professionals throughout the succession planning process to help ensure the transition goes smoothly and maximize retirement funds from the sale. One of the key advisors that all business and farm owners need to meet with is their Financial Planner.

Here are six top reasons business owners should meet with a Financial Planner before selling their business:

 

1. Evaluation of their current financial situation.

 

2. Identification of retirement goals, places you want to travel and how much to put away (if any) for inheritances.

 

3. Calculating how much you will need in retirement.

 

4. Mapping out retirement goals. You have worked hard to build up your business, now is the time to do what you have always wanted to do.

 

5. Understanding your cash flow and expenses during retirement years.

 

6. Designing an investment strategy around your changing needs and bringing in necessary experts to accomplish these milestones.

 

 

Alison Anderson

CEO, SuccessionMatching

~ ~ ~

 

Alison gladly welcomes feedback on her six points why business owners should talk to a financial planner before they look for a buyer. 

 

 

 

 

 

One Step at a Time Towards Financial Literary

 

In case you haven’t noticed, “Financial Literacy” has become big news in the last few years. One of the greatest outcomes was the appointment of Jane Rooney as  Canada’s first Financial Literacy Leader.   Her role is to bring organizations together to discuss the need for education on the subject of money as well as to create awareness around the importance of financial literacy to Canadians.   

Wikipedia defines “Financial Literacy” as the ability to understand how money works in the world: how someone manages to earn or make it, how that person manages it, how he/she invests it (turns it into more) and how that person donates it to help others. That’s a fairly broad explanation for good reason. Money means different things to different people. Being financially literate may not come easily for everyone.

I’d be the first to admit I am not an expert about anatomy.  I can tell you I have ten fingers and toes but please don’t ask me where my liver is or any hidden organs for that matter.  All I need to know is I am grateful I have organs even if I don’t know their exact location.  Because of my lack of knowledge in the field of health science, I empathize with people when they tell me they are clueless about their finances. 

Generally, we have a tendency to focus on the things we are good at or so-called experts.  Our attention is given to the matters that earn us “a living”.  Whether you are a truck driver, operating room nurse, or fire fighter, you are an expert in your occupation.  In some cases, being an expert in every aspect of money isn’t vital but having the basic knowledge is. You still need to have “some” knowledge about managing it and using it to make your life enjoyable. While you know food is essential to create a well-balanced and healthy body, you don’t have to be an expert to develop good eating habits. Much the same can be true about money.  You don’t have to be an expert to know the basic fundamentals about saving and spending.

Thomas A. Edison said, "Our greatest weakness lies in giving up. The most certain way to succeed is always to try just one more time."  This deep-rooted message speaks to the person who makes every effort to save but feels they just can’t; to the one who feels he will be in debt forever; and to the couple who believe they can’t afford to retire.  The overwhelming feelings of defeat and fear make taking steps to learn more about money management difficult. The answer lies in learning more, asking for help when you don’t understand AND knowing it’s okay not to know everything. Additional education and resources for financial literary became a reality to help you become smarter about money.   The end result, when you put forth your best efforts, is that you will feel more in control of your money and your life.  

In order to move forward in our lives, I read that there are three questions we need to ask ourselves.  This exercise can apply to other aspects of your life, not just money management.

What do you need to start doing?

What do you need to stop doing?

What do you need to keep on doing? 

The answers do not have to be “over-the-top”.  You can focus on taking small steps toward making small changes.  Learning something is far better than simply giving up in defeat.  Take the time today to examine and mull over your present circumstances.  What are your answers to these questions?

When We Have So Much

Imagine going without food, clean water to drink or bathe, and medication to treat a curable ailment. I would find these conditions difficult and unbearable because I have never had to live a life without these bare necessities.

 

As I listened to my fellow Toastmaster, Terry Aberhart, share his visit to Ethiopia, I caught myself thinking “Why as a society are we so selfish when we have so much to be grateful for?”  When I asked Terry’s permission to share his story, my intentions were to quote only pieces of his inspirational talk but there was very little I could omit without robbing you of hearing his entire message.  

Terry, CEO of Aberhart Farms Inc. and Sure Growth Technologies Inc. (an agronomic consulting company), was on a ten-day Food Study tour in Ethiopia. He shared his story. 

“Our guide tried to explain that cultures that live in poverty suffer from what he described as aspiration failure.    When you have nothing, means to survive or a meal for the day is good enough.   The people in this culture cannot aspire to things beyond or above basic survival needs.  This concept was hard to fathom coming from our American way of be all you can be, the sky’s the limit.  The only thing standing between you and your goals is yourself.   In a place where aspirations are driven by models, movie stars, musicians, mansions and money, it’s not a surprise to see how many struggle with depression and anxiety when we use meaningless stuff as a benchmark of fulfilment and success.

All the people of Ethiopia were always extremely happy and proud no matter how much or little they had. Most housing was made of sticks, straw, and cattle manure. Women and children would have to walk as far a mile or two to find water that we would not consider bathing in, let alone using to drink.”

Terry describes, “When you hear these stories, it may move you, it may strike a chord in your heart, or cause a lump in your throat…but when you live it with all your senses, something much more powerful and dramatic happens.    When you smell the air, animals, and homes, taste the dust from dirt roads in the village, look into the eyes of a thirteen year old orphan and her four year old brother who are living homeless, hoping for another tomorrow, your heart is torn. Your inner core and everything you thought you believed is ripped open and changed forever.”  

The dramatic change in this experience was to see people who have so little wealth in the metrics we would measure, you feel challenged.   At the same time these people are the richest I have ever seen in happiness, family, friendships and matters of meaning.    

It was said that when our journey was over, that we will leave Ethiopia, but Ethiopia will never leave us.  

 I think about that experience almost on a daily basis.  That experience has effected the biggest change in my life and continues to effect change in me to this day.  

Coming back home, ironically was the biggest culture shock of this experience. To see how many of us feel that our life is not as good as our Facebook friend who went on a sunny beach holiday during a winter break.   When our day is ruined because the hot water heater quit and we had to have a cold shower in the morning.   When we open the fridge and feel like there is nothing to eat, while our fridge, freezer and cupboards are full of food. 

Yet on the other side of the world a day was ruined because a family member was lost as they could not afford proper food or medication.  

Change is to challenge the boundaries that our society has placed upon us, to reach deep inside for the true meaning of happiness and fulfillment.  

The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little.” 

Listening to Terry’s story made me think about our perspectives. We don’t have to travel to Ethiopia to see poverty. Whether we choose to ignore it or not, poverty exists within our communities and country.  The challenge is whether or not we can live without what Terry called “meaningless stuff” so others can have “basic life-sustaining stuff”?  Can we boldly sacrifice a small portion of our fortune to benefit others?   A change in our perspectives to the things that matter most can make a world of difference and the world a different place.

When You Aren’t Able to Stomach the Ride

 

When the market value of your investments is falling, do you feel skittish?  Do you question your motives for investing in the markets?  Do you believe you can handle the volatility yet in reality are unable to stomach the turbulences?  You want to earn a higher return than the amount paid on GIC investments but at the same time know you can’t afford or are unwilling to take the risk.  What are other options?

In the previous blog, Investing in the Rise and Fall of the Markets, mutual funds were introduced as an option for participating in the markets.  The notion of combining your investment dollars with others to invest jointly and diversify broadly into different asset classes and sectors of the world’s economy certainly has its appeal but nevertheless still comes with potential market risk.  If you are still feeling skittish, you may be consoled knowing a layer of protection can be added to guard the value of your capital investment.   You must determine if the cost that comes with this protection is worth having in exchange for peace of mind.

A segregated fund policy has all the similarities of a mutual fund with an important exception.  Because these investment products are offered by insurance companies, they include built-in guarantees to protect either 75% or 100% of the capital in the event of an upheaval in the markets at the time of maturity or death. The two values, both the current market value and guaranteed value, are compared to ensure the higher amount is paid.

For example: Let’s assume five years ago you invested $100,000 into a segregated fund policy which offers 75% maturity and 100% death benefit guarantees. Today, the current market value may be $125,000; the maturity value remains at $75,000, and the death benefit is $100,000.  Because of the opportunities in the markets, you are optimistic that your investment will be lucrative but you feel comfortable with the guarantees in case the trend changes.        

Generally, the guarantee is determined on a 10-year holding period.  Some segregated fund policies may allow the option to lock in any market gains. Once you accept the higher value, you reset the market value as well as establish a new guarantee.

Segregated funds have been around forever. Perhaps “forever” may appear as a bit of an exaggeration but more than thirty years can seem like an eternity. In other words, segregated funds are not new.  Most likely, mutual funds may have stolen the limelight from segregated funds because mutual funds’ management expense ratios (MERs) are lower.  The higher MER fee (upwards of 1%) with segregated funds is the cost for the added insurance protection.  If this allows you to feel at ease, then the extra cost may be worth it.  You honestly do not see the fee since this insurance premium is included with the other management expenses associated with the normal operation of the funds.  The total MER costs are subtracted from the rate of return of the investment.

When considering investments options, determining the right strategy for you may require some investigation.    Whether you are choosing GIC investments, mutual funds, or a segregated fund policy, you are looking for the best alternative built with your intentions in mind (not someone else’s.)   

• If the value of your estate is significant, one consideration may be to bypass the probate process using segregated funds to distribute a portion of its value directly to beneficiaries. 

•  If you know that inflation is currently at 2.00%, you may not be satisfied with earning an average interest rate of 1.60% in GICs (Guaranteed Investment Certificates) even though these investments offer principal protection. 

• If you can’t ride the market’s roller coaster and tolerate investment fluctuations, you may desire the guaranteed protection of principal offered by a segregated fund policy.

Endorsing one product over another is only an appropriate strategy if it’s appropriate for you.  Just because one product is right for one person doesn’t necessarily mean it fits the needs of another.  Be informed about the investment options available so you are able to make the best decision for your circumstances.  

To read more about the difference between segregated fund policies versus mutual funds, you may click here to read Canada Life’s brochure, Intelligent Investing Design Your Future or Advocis® publication, Segregated Funds Come with a Guarantee. Other helpful information on segregated funds can be found at Get Smarter About Money.