Written by: Corey Janoff
In today’s episode of Financial Clarity for Doctors, Corey and Rachelle talk about one of the main reasons financial planning can be so challenging. Unfortunately, you have to wait a LONG time to find out if you made the best choices. When we are talking about long-term planning, the short-term success or failure of specific choices doesn’t matter quite as much. So how can you tell if you’re on the right track?
Examples of this challenge include:
- Short-term performance of investments. Doesn’t really matter if it’s retirement money! Only long-term performance matters.
- Consistent income from a rental property over time.
- College savings. How do you know you’re saving enough when you have no idea how much college will cost?
The bottom line is that we cannot always know that we are making the best or optimal choice for our financial plan. You CAN know that you are making GOOD choices. Good financial choices include things like saving more for retirement or putting extra toward debt. We can only know which one was the optimal choice with hindsight, but we can know that both are a good choice now.
For more financial planning tips from Corey and Rachelle, find them on social media!
LinkedIn: @CoreyJanoff and @RachelleVanderzanden; Instagram: @CoreyJanoff and @VanderzandenRachelle; and Twitter: @CoreyJanoffCFP and @RachelleFinance
Also Listen on Spotify!