I love to garden in the summertime. After careful planning, watering, fertilizing and tending, I’m rewarded with a bountiful harvest. But whether cultivating rhubarb or retirement planning, the steps aren’t that different.
Assessing Your Resources
Even before the first seeds go in the ground, my planning begins months earlier. I carefully select a site that is well-drained and will receive sufficient sunlight.
It’s the same with preparing for life’s important goals. College planning shouldn’t start the day your child walks across the stage and receives his or her high school diploma; it should begin years, or even decades, earlier by setting aside funds along the way. Likewise, retirement planning shouldn’t begin when you receive that gold watch. It, too, should start decades prior to retirement, as you put away a portion of your paycheck.
Planning With the End in Mind
With the site selected, I determine what flowers and crops I want to plant. I usually select a variety of flowers and vegetables to add color to the backyard and sustenance to my table.
Similarly, when planning for a college education or an enjoyable retirement, you want to start with the end in mind. What is it you’re wanting to accomplish? For college, is it a state school or a private college? Four years? A graduate degree? For retirement, ask yourself what you’re retiring to. Is it travel? Hobbies? Spending time with family? Or is it volunteering, starting a second career or consulting? Money is a tool to accomplish important life goals – it shouldn’t be the goal.
See more: Ready, Set, Retire: Prepare Your Finances for Retirement
Watering and Fertilizing Your Plan
Consistent water and nutrients for your garden can help produce vibrant colors and bountiful crops. Similarly, adding funds on a regular basis can help your accounts grow in value and make it more likely that you’ll accomplish your goals.
Just like in the garden where you plan to have a series of plantings and harvests, you’ll be targeting both shorter-term savings as well as longer-term investing. Shorter-term savings may be targeted at an emergency fund, a dream vacation or a down payment for a house. Longer-term investing may be aimed at accumulating enough for retirement, sending children to college or saving for a second home.
Build a Fence
You wouldn’t lay out a vegetable garden, carefully select plants, water and fertilize it regularly, then leave it to pests and animals to ravage. A carefully constructed fence and pest control can help ensure your hard work won’t be eaten by unintended guests.
Your assets need protection as well. A property policy can provide physical coverage to your home, farm or business operations, while robust liability coverages can provide a wide barrier around some of your financial assets, protecting them in the event of a claim. Don’t forget your biggest asset: your ability to earn an income. Lost wages due to death or disability can be replaced with life insurance and disability income protection.
See more: 4 Essentials for Your Estate Plan
The Value of a Master Gardener
To a weekend gardener like myself, speaking with a Master Gardener can be invaluable, as they have the expertise to point out varieties best for local zones and soils, and identify disease and pests.
Working with a trusted professional can help your financial resources thrive as well. Their knowledge and access to tools can help you develop a plan to meet your important life goals. As with many things in life, the most important step is the first one: Just start. The garden doesn’t grow itself – and it doesn’t grow overnight. Make the first step to improve your financial security so that you can one day reap the rewards of your diligent efforts.
Joe Buhrmann is a Certified Financial Planner™ and is Manager of Financial Planning Support for COUNTRY Financial.
“COUNTRY Financial®” is the marketing name for the COUNTRY Financial family of affiliated companies (collectively, “COUNTRY”), which include COUNTRY Life Insurance Company®, COUNTRY Mutual Insurance Company®, and their respective subsidiaries, located in Bloomington, IL. These companies issue policies mentioned within.
Investment management, retirement, trust, and planning services provided by COUNTRY Trust Bank®.
Registered Broker/Dealer, offering securities products and services: COUNTRY® Capital Management Company, 1705 Towanda Avenue, P.O. Box 2222Bloomington, IL 61702-2222, tel (866) 551-0060. Member FINRA.
