Working Together for Financial Success was originally published in the Knoxville News Sentinel
As the year-end approaches, I asked my wife to join me at the kitchen table to review our money history and current financial plan. We discussed the following questions:
What is your “grade” for the 2015 Fain Financial Plan?
(Tina): “A” because I’ve been a very thrifty shopper — I never pay full price for anything.
(Paul): “B” because I feel that we overspent, but we did manage to save, to reduce debt, and to replace our health insurance.
What is our family’s biggest financial challenge?
(Tina): The cost of health care — our family’s out-of-pocket costs have skyrocketed. I’m trying to get over my anger about paying more for less.
(Paul): Tightening up a spending plan that balances living life with the increased costs of health care and aiding several family members.
What is the best way to teach children financial responsibility?
(Tina): Make them pay for their own crap! But seriously, they need to learn from my example.
(Paul): Talk. Throughout the year, I talk to them about our family’s finances, decisions and changes.
What did your parents teach you about money?
(Tina): Money doesn’t grow on trees.
(Paul): Money doesn’t grow on trees.
What is your philosophy about using and managing debt?
(Tina): Debt is inevitable for the majority of Americans. You just can’t allow yourself to get in a hole. The housing bubble was ridiculous.
(Paul): Responsible debt can be leveraged to great things such as homeownership or career education.
Do you have a budgeting “Achilles’ heel?”
(Tina): I don’t like to budget.
(Paul): Travel. With our family’s hectic calendar we struggle to schedule our travel and sometimes it disrupts our budget.
What is your investment philosophy?
(Tina): Resist the urge to play big. Now and then it is OK to take some additional risk but only with money, you can afford to lose. I don’t like to lose.
(Paul): Patience, discipline, and simplicity lead to success. Too many investors are swayed by headlines and advertisements that manipulate fear and greed.
What is your vision of retirement?
(Tina): Travel.
(Paul): In my 60s or 70s, I would love to gradually transition into retirement assuming that my health holds and I remain relevant as a financial adviser.
How do you feel about our estate plan?
(Tina): Because my children will read this article, I’m leaving everything to Mabel my dog.
(Paul): My folks worked hard and saved responsibly. I hope to pass on those values.
What is the best approach for us to work together on our finances?
(Tina): Have one person write down the questions and the nonfinancial planner spouse answer them.
(Paul): Ha.
Financial goals for 2016?
(Tina): Be healthier and assist my family.
(Paul): Save. Give. Live.
