One of the things that younger clients always ask me: why should I do X?
X generally is an action, whether it is starting the financial planning process itself, purchasing a specific product, or allocating a certain amount to savings of some form or another. I would say that 90% of the questions I get from Millenial clients fall in this arena.
And there are always a myriad of answers. But there is one that seems to apply to essentially every single one, and is an underlying theme in the planning I do. This theme is of “Flexibility”.
Now as a martial artist I was taught early on that flexibility is one of the keys to power, in that it allows you to accelerate over a greater distance, and actually at a greater rate. It also helps prevent injury.
Financially it is very similar. Having flexibility in your planning allows you to have multiple options at any given decision point, so you are not forced along a single track (which is probably not where you want to be). It allows you to take the “less bad option”, or even have good ones to chose from.
Furthermore, it can allow you to take advantage of The Golden Rule (those who have the gold make the rules), because flexibility can give you access to capital to do things like buy when the market is in the toilet, or start a company, or other things that require quickly getting your hands on money when others can’t. It also allows you to literally pick up and change scenery too if need be, because you can.
And that is the reason to do many of the things I and other financial advisers suggest: because you can now. Later you might not be able to. Better to have the option though, because having a choice is always better than having the choice made for you because there is no other course.