Financial Planning Perspective on Life Milestones | Money is important


My daughter recently graduated from a master’s program at a university in Texas. My wife and I attended the ceremony and took a road trip, visiting the Grand Canyon and other national parks along the way.

Her graduation was a big milestone for both her and us. The trip got me thinking about planning, how my daughter planned it, and the importance of planning in successfully reaching life’s milestones.

For a person to graduate from any learning program, there needs to be planning on the part of both the student and, in many cases, the parent or guardian. Many planning questions and assumptions go into making the decision to embark on an intensive program of study. On the part of the student, of course, the questions focus on the desirability of a career, personal strengths, which school may have the optimal program or which resources and course of study are best to achieve the desired result.

For parents or guardians, some key questions could be: What advice can I give my child to choose this path? How might we best house financial and non-financial resources to support the person in this endeavor?

Is there a relationship with financial planning in this type of planning? I would say very much yes.

In financial planning, we take everything we know about an individual or family’s finances and financial resources and help them develop the best road map for achieving their financial goals. As planners, we often do educational analysis for our clients with young children. Advanced preparation to estimate the cost of a child’s future education and establish a savings program to fund those expenses is not only a critical part of a younger family’s financial goals, but also helps reduce the ‘stress and worries of funding future education. expenses.

Successfully achieving important milestones in life requires planning. Take retirement for example. Isn’t being prepared the best and least stressful way to reach this milestone? There is no better way in my mind to be prepared for any major life goal than to plan it well.

From a planning perspective, I would see these “milestones” as goals that, in many cases, require financial resources to achieve. A comprehensive financial plan takes into account a multitude of elements necessary to achieve many important life milestones and, most importantly, provides the client with important information about the best ways to achieve the goal or multiple goals.

Whether for education, retirement, estate planning, or other life goals, there is usually a financial component involved that can be analyzed and understood in a way that not only increases the likelihood of success, but it also reduces risk and stress in achieving the desired result.

Robert Toomey, CFA/CFP, is vice president of research at SR Schill & Associates in Mercer Island.



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Jennifer Ahdout

Jennifer Ahdout

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