From The Desk of Andrew Hammond

Voices in this industry, wealth management, encourage you to save as much as possible and never spend. It is predicated on getting investors to believe a narrative that you’ll never have enough. But so many of my clients, once they save enough for retirement and legacy plans, don’t give themselves permission to enjoy it. It’s ingrained to just keep saving.

I often consult clients on: What is it all for? What’s the number? And once you have enough, is there anything you’d like to do but have been holding back?

I talk to people all the time who won’t spend money on themselves and have decided to leave all of the excess to their kids. They’ve paid for daycare, college, perhaps a wedding, and might even help their kids buy a house. They have worked their entire lives to provide for their kids. But when do they allow themselves to enjoy the fruits of their labor?

I want clients to balance today and tomorrow because tomorrow is never promised. Likewise, I’m a big proponent of milestones. When you reach a milestone—say you want to accumulate $2 million or put your kids through college—splurge. Reward yourself. Go on a vacation somewhere you’ve never been. Buy the Tesla! Give yourself permission.

Reflect on your financial plan and ask yourself: When is enough enough? Then, when enough is enough, think about how you can use your excess reserves. What are you doing to reward yourself for all of that hard work and adherence to the financial plan? We’ve worked together to form a sound plan that you have confidence in. Now, let’s use your periodic financial review meetings as an opportunity to check on your milestones. This should include both short- and long-term goals.

For Becky and me, a short-term goal was buying a third car. Our twins are going to drive in the fall (watch out world!), and we will need the extra vehicle. So, we bought a Jeep. It’s not a new Jeep. But we’re very excited. We didn’t have to buy a new car for them. But we are hitting our savings milestone. So we did it!

Retirement should be a time to enjoy the fruits of your labor while also exploring new horizons. This in mind, I’m sharing the summer/winter 2024 In-Person and Online Course Catalog from the Osher Lifelong Learning Institute (OLLI) at UMass Boston. It includes educational, cultural, and social programs specifically for adult learners ages 50+. This catalog was shared with me by a client and is just one example of ways retirees may stay intellectually engaged and socially connected to ensure a well-rounded and fulfilling retirement.

As always, please reach out if you have questions or if you’d like to revisit your goals and milestones. I look forward to meeting with you.

AAF Wealth Management is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where AAF Wealth Management and its representatives are properly licensed or exempt from licensure. This blog is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by AAF Wealth Management unless a client service agreement is in place.