25 Ways We Help Clients Build Better Relationships with Their Money
16.) We help clients visualize the power of compound growth with tables, graphs and projections.
We all have a deeply engrained psychological mindset regarding money that was learned or taught to us – often obtained via passive observation of our parents and role-models while growing up. A compound interest calculator on the internet telling you that you will be able to retire when you turn 60 often doesn’t change those deeply rooted fears or irrational anxieties you have towards money.
Sometimes, seeing is believing – not until you have seen something with your own eyes will you believe it is true or exists.
Having a financial planner show you that “it will be enough” can help break through that barrier and instill confidence in your plans and goals. Seeing the numbers in year-by-year tables and portrayed in graphs and diagrams can help cement your financial reality and bring about a more wholistic understanding of how compound interest and investment growth plays to your benefit when you have enough time for your money and investments to grow.
Even then, sometimes seeing something once isn’t enough, and that’s why we have often have similar information presented in different formats. We also gauge “success” and the strength of a plan using several different metrics, not just one. Having a strong Monte Carlo probability; having significant assets leftover at the end of a plan; having a low and safe withdrawal rate each year; seeing the future value of your money constantly increase or stay level across the bar chart of your future years; and reading the written-out conclusions and recommendations section are all different ways we can help you understand and internalize the likelihood that your financial future is secure.
Please contact us at: Contact Arrivity or 206.217.2583 or info@arrivity.com if we can assist you or someone you know with financial planning.
Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful.