Let’s start at the 30,000 ft. level and provide a very broad overview of the three steps we’ll use throughout the process. So this is truly foundational.
Let’s start at the 30,000 ft. level and provide a very broad overview of the three steps we’ll use throughout the process. So this is truly foundational.
Here are the three, simple steps I want you to commit to memory: Plan, Prepare, and Review. Let’s keep our focus on the big picture and the underlying philosophy of these three steps by adding a simple phrase to each one:
Step 1: Plan – for your preferred future
Step 2: Prepare – for what might go wrong
Step 3: Review – and adjust on a regular basis
Step 1: Plan – for your preferred future
My wife, Diane, always says it best: She prays daily for every member of our family to have a long, healthy life, and a quick, painless death. That’s what we all want, right?
That’s what makes step one so much fun. We’re preparing for our preferred future.
Step 2: Prepare – for what might go wrong
This is where we consider what would happen if we experience a premature death or disability, or a stock market crash, or major changes in tax rates or inflation – things like that. Some of these issues apply to everyone. And some may be very unique to your own personal situation. It does us no good to have an exceptional plan for our preferred future, but then we completely ignore what might happen to derail that plan.
We need to know that, if life throws us a curve, our entire plan won’t implode.
Step 3: Review – and adjust on a regular basis
Of course, we don’t want to create a plan once and then just forget it. We always tell our clients that the planning process itself is really just the beginning. Any good plan should be highly flexible and should be reviewed and adjusted regularly to ensure it continues to be as effective as possible over time, because over time, things will change in your personal circumstances and also in the world at large. So think of your plan as a living, dynamic thing. Here’s the spoiler alert – we’re going to review and adjust our plan annually. No more, no less. None of this crazy weekly or monthly or even quarterly stuff. You’ll not only drive yourself crazy, but you’ll actually reduce the effectiveness of your plan.
So there you go:
You’re Planning – for your preferred future
You’re Preparing – for what might go wrong
You’re Reviewing – and adjusting on a regular basis (annually – no more, no less)
So you see, at that 30,000ft level, it’s super simple – but extremely important to understand and commit to the process. Three simple steps- Plan, Prepare, and Review.