February 2025 Blog Newsletter

February Captain’s Log

The Benefits of Advisors Understanding the Purpose of Your Money

Understanding the purpose of a client’s money offers two key benefits:

1. Personalized Financial Planning – By understanding a client’s goals and values, advisors can create tailored financial plans that align with their priorities and aspirations.
2. Enhanced Client Relationships – A deeper understanding of a client’s financial purpose allows advisors to help clients clarify their goals. By asking thoughtful, open-ended questions, advisors can encourage clients to reflect on their values, aspirations, and priorities.

Below is a list of questions that can guide meaningful conversations to help uncover the purpose behind a client’s financial decisions.

Key Questions to Understand a Client’s Financial Purpose

Personal Goals and Aspirations
What are the most important financial goals you want to achieve in your lifetime?
Are there specific milestones (e.g., buying a home, funding education, traveling) that you envision for yourself or your family?
What dreams or aspirations do you have that require financial resources to achieve?

Values and Priorities
What values or principles are most important to you when managing your finances?
How do your personal beliefs influence your financial decisions?
Are there causes or organizations you feel passionate about supporting financially?

Family Considerations
How do your family members influence your financial goals and priorities?
What legacy do you want to leave for your children or loved ones?
How do you want to provide for your family’s future needs?

Risk Tolerance and Time Horizon
How comfortable are you with taking risks in your investments?
What is your time horizon for achieving your financial goals?
Are there specific deadlines you have in mind? How do you feel about market fluctuations and potential short-term losses?

Liquidity and Access
Do you have specific short-term needs or expenses you want to ensure are covered? How important is it for you to have immediate access to your money?
Are there upcoming expenses you are planning for (e.g., education, medical needs)?

Philanthropic Goals
Are there charitable organizations or causes you would like to support? If so, how do you envision contributing?
What impact do you hope your philanthropy will have on your community or the world?
How do you want to balance your personal financial goals with your desire to give back?

Retirement and Future Planning
What does a successful retirement look like for you?
At what age do you envision retiring, and what activities do you hope to pursue?
How do you want to spend your time and resources during your retirement years?

Reflection on Past Experiences
Can you share a financial decision you made in the past that you are particularly proud of? What made it significant?
Have there been any financial mistakes or lessons learned that have shaped your current approach to money?
How did your upbringing influence your views on money and financial success?

Future Planning and Vision
If you could look into the future and see your financial situation in 10, 20, or 30 years, what would you want to see?
What lifestyle changes do you hope to make as your financial situation evolves?
How do you envision your financial life changing in the next few years?

Balancing Financial and Personal Life
How do you balance your financial goals with your personal life and relationships?
What sacrifices, if any, are you willing to make to achieve your financial goals?
How important is work-life balance to you, and how does that influence your financial planning?

Support and Guidance
What kind of support or guidance do you feel you need to achieve your financial goals?
How involved do you want to be in the day-to-day management of your investments?
Are there specific financial topics or areas where you would like to increase your knowledge?

These questions foster open dialogue and help clients articulate their financial objectives, values, and priorities. By exploring these areas, clients can gain greater clarity for the purpose of their money, leading to more effective financial planning and investment strategies.

Advisors can use these insights to create customized financial plans that align with each client’s unique aspirations, ultimately resulting in a more fulfilling and meaningful financial journey.

Best,
Adam

Are You a Financial Match? The Money Talk Before Tying the Knot

So, you’ve found your person—the one you want to build a life with. Congrats! But before you say “I do,” there’s one important (and slightly unromantic) topic to cover: money. The “financial talk” might not give you butterflies, but it’s the secret to a stress-free, happy future together. Here’s how to make it simple and effective—and maybe even a little fun.

Start with Transparency: Numbers and Priorities

What’s in the bank? How much do you owe—student loans, credit cards, car payments? What assets do you have, like savings or investments? And what’s your actual income? Think of this as creating a financial treasure map, showing where you’re starting as a team. Transparency now avoids surprises later and ensures trust from the beginning.

Once you’ve shared the numbers, dive into what matters most to each of you. Is saving for a house your dream, or do you prefer to focus on travel or paying off debt? Aligning your financial priorities early helps you set shared goals and prevent future misunderstandings.

Build a Budget and Plan for the Future

With a clear understanding of your finances, it’s time to create a budget together. Combine your incomes, debts, and expenses to see the big picture. Tools like EveryDollar.com are great for building a mock budget for life after marriage. Include essentials like rent and utilities, but don’t forget fun items like vacations or date nights.

As you plan, think long-term. If kids are in your future, how will you budget for childcare or potentially living on a single income? Would you prefer a big house or a smaller one with more savings? Planning ahead ensures your lifestyle reflects what you both value most and gives you financial peace of mind.

Communication is Key

Money conversations are easier with clear communication. Decide how you’ll handle daily expenses: Will you combine accounts, keep them separate, or do a mix? If one of you has debt, will you tackle it together or individually? Set spending limits for big purchases and decide how you’ll make those decisions as a team. Communication minimizes stress and keeps you both on the same page.

Focus on Understanding, Not Judging

It’s not about agreeing on every financial decision but understanding each other’s choices. Why does your partner love saving every penny, or why are they loyal to their coffee habit? Knowing the “why” behind financial preferences builds trust and strengthens your partnership.

While money talk is not as exciting as picking out wedding cake, it’s just as important. Love is the foundation, but financial harmony is the key to building a strong, happy life together. With honesty, planning, and flexibility, you’ll be ready to tackle the future as a team. Let Anchor Wealth help you plan for you and your partner’s shared goals and dreams.

By Rianna Caswell, Wealth Advisor

Meet Malik Coleman

Malik is the newest member of the AWM team. He began his journey to Anchor earlier this month as a paraplanner, a role that is crucial to our team’s success.

In his position, Malik will attend client meetings, take notes, and assist with any transactions that need to occur after the meetings.

During his free time, Malik enjoys spending time with is family and listening to music.

The next time you visit the Rockford office be sure to stop by his office and say hello!