Don’t Let These 'Ghosts' Haunt Your Financial Plan

As Halloween approaches, it’s not just ghosts, goblins, and things that go bump in the night that can give us a scare. For many, the real fright comes from the financial worries, including whether they’re saving enough, how market swings might impact their future, or what unexpected costs could creep in.

However, there is good news! With the right planning, these financial “ghosts” don’t have to haunt you. Let’s shine a light on a few common fears and how to keep them from lurking in the shadows of your financial plan.

Ghosts That Commonly Haunt Financial Plans

The Fear of Outliving Your Money

As life expectancies increase, so does the need for sustainable retirement income. Many clients wonder if their savings will last. When running future projections, we’re making assumptions about things we don’t know for certain. At Woodward, when we run your Financial Independence Analysis, we lean on the conservative side of assumptions: projecting longer-than-average lifespans, inflating medical costs more aggressively than general inflation, and growing Social Security income more slowly.

We revisit these projections regularly (especially when there are big decisions to be made) to help narrow in on our projections and make any needed adjustments ahead of time. This process helps clients weigh options, prepare for the unexpected, and feel confident in the long-term planning we’ve built together.

The Phantom of Market Volatility

As everyone who’s invested funds in the stock market knows, in the short term, markets rise and fall unpredictably. Our job at Woodward isn’t to try to predict the market, but to build portfolios that can withstand its ups and downs while still supporting your goals.

We look at your investment portfolio through two lenses:

1. What allocation do you need to reach your goals?

2. What allocation lets you sleep at night?

If a 100% stock portfolio leaves you wanting to sell at the first downturn, it’s not the right fit. Our goal is to strike the right balance of reaching all your goals while keeping you invested, comfortable, and confident, adjusting as needed along the way.

The Estate Planning Apparition

While we aren’t attorneys, estate planning is a key part of financial planning. We review your documents and confirm that the assets we manage align with your wishes. Regular updates are essential, since incomplete or outdated plans can leave families in a difficult position.

We also make sure your beneficiary designations are current, helping ensure your intentions are carried out. Sadly, we often assist with settling estates when a client passes away, and having an updated plan in place can make a very difficult time a bit smoother for loved ones. If you think your estate documents could use a refresh, reach out to our team. We can review your plan together and, if needed, recommend attorneys who can help draft or update documents.

Turning Nightmares into Peace of Mind

Unlike haunted houses, these fears are all real and can keep people up worrying at night. However, all of these fears are manageable with a strong financial plan. Proactive planning shines a light on the unknown, which can help give you peace of mind. If any of these worries hit home for you, reach out to your team at Woodward so we can help address them together. We want haunted houses, ghosts, and goblins to be the only things that scare you this season!