FEE-ONLY financial advisers and CPAs play an important role in helping people achieve their financial goals, but what happens when those goals are unrealistic? In these situations, it is not only important that clients understand why certain goals may be unrealistic, but it is also important for professionals to help them understand the realities of their financial situation and explore alternatives.
One example of an unrealistic financial goal is the desire to retire at age 30 with a million dollars in savings while living in New York City and taking vacations around the world. While this may be possible for some people, it's important for the client in this situation to understand the implications of such an early retirement, including the potential for a longer retirement period and the need for a larger nest egg. They may also explore alternatives such as working part-time during retirement or downsizing to a smaller home.
Another example of an unrealistic financial goal is the desire to purchase a luxury home in Los Angeles with no down payment. A FEE-ONLY financial advisor or CPA can help the client understand the risks of this type of purchase, including the possibility of foreclosure, and explore alternatives such as saving for a down payment or purchasing a more modest home.
It is important for the financial advisor or CPA to be honest with their clients and help them understand the implications of their financial goals. However, it is also important for them to work with the client to create a plan that will best achieve what the person wants. This may involve exploring alternatives and adjusting the client's expectations. For example, if the client's goal is to retire early, the advisor or CPA may help them understand that they may need to save more or invest differently.
In short, FEE-ONLY financial advisers and CPAs play an important role in helping people achieve their financial goals. When those goals are unrealistic, it's important for these professionals to work with their clients to help them understand the realities of their financial situation and explore alternatives. By being honest and working with their clients to create a plan that will best achieve their goals, these professionals can help their clients achieve financial success.
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