This article is reprinted with permission from Esq. Wealth Management, Inc.
Recently, I met with a potential client who shared an eye-opening experience. For years, he had been working with a large financial services firm that managed his portfolio and charged him an annual fee. Despite this ongoing relationship, the firm made virtually no adjustments to his account over time. When he mentioned to them that he was considering speaking with EsqWealth about financial planning, their response was telling: “They have the same products that we have.” But that response missed the most important question: why? Why had nothing meaningful changed in his portfolio? Why was the focus on products instead of his unique goals? The answer: there was no plan they were following; there was only an account with some mutual fund investments and some insurance products that generated a commission.
This response also highlights a fundamental difference in approach. At EsqWealth, we don’t focus on selling products to earn a commission. We are curators of ideas and strategies. Financial planning shouldn’t be about selling a product to earn a commission; it should be about creating a tailored plan that aligns with your unique goals and values.
By asking why at every step (why this strategy, why this allocation, why this goal) we can ensure the plan truly reflects your priorities. The traditional model of financial planning—starting a plan with the product that earns the advisor the most in commissions—is flawed. Our approach starts with personal goals. The goals dictate the plan, and the plan dictates what products, if any, are necessary. The plan should focus on a variety of critical elements, such as cash flow analysis, estate planning, tax strategies, risk management, asset allocation, and asset protection. For high-net-worth clients, it’s rarely about needing a product; it’s about needing a plan and fresh ideas designed to achieve goals while minimizing taxes, growing assets, protecting wealth, and leaving a legacy.
The New Year’s Opportunity
The New Year is a time for fresh starts and ambitious resolutions. While many focus on health, relationships, or personal growth, it’s also an excellent opportunity to reflect on your financial goals. At EsqWealth, we believe that true financial success begins with clarity and intentionality. What drives your financial decisions? What does wealth mean to you? These are the questions that can transform a simple resolution into a meaningful and actionable plan for the year ahead.
With wealth comes an expansive list of financial opportunities: paying down debt, upgrading homes, maximizing retirement savings, or supporting future generations. The real question isn’t what’s possible, but what’s most important and why. This is where intentional financial planning becomes invaluable. Financial planning, done properly, helps you make choices in alignment with your values.
Establishing Your Financial “Why”
The foundation of meaningful financial planning lies in understanding your “why.” What does financial success mean to you? Is it about flexibility and independence? Generational legacy? Giving back to your community? Your “why” serves as your guidepost, helping you prioritize and sequence your financial goals.
For example, if leaving a legacy is what drives you, focus your resources on estate planning and financial education for your heirs. If freedom to travel and explore new experiences inspires you, prioritize savings and investments that support early retirement or sabbaticals. By rooting your decisions in your core values, every action you take aligns with the life you envision for yourself and your family.
The 5 Whys Technique
If you’re unsure where to start, consider the “5 Whys Technique.” This powerful exercise helps uncover the deeper motivations behind your financial goals. Begin with a specific goal (e.g., “Retire early”) and ask yourself “why” five times. Let me share one of my personal goals: to spend more time with my wife and children. Using the “5 Whys Technique,” I uncovered the deeper motivations behind this goal. For example:
- Why spend more time with my family? To strengthen my relationships with my wife and children.
- Why strengthen those relationships? Because I want them to feel supported, loved, and valued.
- Why is it important that they feel supported, loved, and valued? Because a strong family foundation brings happiness, security, and trust for everyone.
- Why do I want a strong family foundation? Because I want to create meaningful memories and leave a legacy of love and connection.
- Why do I want to leave a legacy of love and connection? Because it reflects my core values and ensures that my family carries forward a sense of unity and purpose.
This process transforms a simple desire into a powerful personal motivation. It not only clarifies my purpose but also guides financial decisions by ensuring resources are allocated effectively toward achieving this goal. For example, budgeting for family trips, saving for children’s education, or ensuring adequate life insurance coverage might be part of the plan. By digging deeper into your financial goals, whether they are to retire early, leave a legacy, or buy a vacation home, you can uncover the “why” behind your financial decisions, helping you approach planning with a deeper sense of purpose and clarity.
Envision Your Future
Take time this New Year to envision your future self—10, 20, or 30 years from now. What accomplishments do you want to celebrate? What regrets do you want to avoid? Write these things down with as much detail as you can muster. The clearer your vision, the more intentional your financial decisions will be, reducing stress and fostering peace of mind.
Why Resolutions Often Fail—And How to Succeed
New Year’s resolutions often falter because they lack specificity and a clear connection to what truly matters. Instead of generic resolutions like “Save more money” or “Spend less,” anchor your goals in your personal “why.”
For example, if your resolution is to “spend less,” consider what that means in the context of your values. Are you cutting back to invest more in your children’s education? To fund a long-awaited sabbatical? To donate to causes close to your heart? By tying your goals to a deeper purpose, you’re more likely to stick to them and enjoy the journey.
Resolve to Achieve Meaningful Progress
This coming year, resolve to approach your financial decisions with intentionality. Reconnect with what drives your financial goals, refine your plan with expert guidance, and take steps that move you closer to your vision. With a strong sense of purpose, this can be the year you achieve meaningful progress—and set the stage for an enduring legacy.
The information above is not intended to and should not be construed as specific advice or recommendations for any individual. The opinions voiced are for general information only and are not intended to provide, and should not be relied on for tax, legal, or accounting advice. To discuss specific recommendations for any unique situation, please feel free to contact us.