• Skip to main content
cornerstone wealth logo
  • About us
  • Our team
  • Services
  • Articles
  • Contact us
×
  • About us
  • Our team
  • Services
  • Articles
  • Contact us
Book a chat

Admin

Are You Living Your Life On Purpose?

Admin · Nov 18, 2020 ·

Why, day in and day out, do you do the things that you do? Because you have to? Because you want to? Because you’ve had the same routine for years and you’re used to it?

If you feel like your life is something that just happens to you, it’s time to reassess how you’re spending your time. Financial security, stability, and creature comforts are all important. But feeling that your life has purpose will become more and more critical to your emotional and physical well-being as you age — especially when you finally retire.

A healthy sense of purpose.

Research into the area of human well-being draws a distinction between happiness (experiencing pleasure and avoiding pain) and the feelings of meaning and self-worth that we derive from our lives (1).

Too often, we focus on the former and neglect the latter. This is why the sheen wears off so quickly from a big-ticket purchase. Buying a new car or big-screen TV gives us a quick hit of pleasure. But sooner rather than later, new things become just more things that we’ve accumulated. Once that initial happiness evaporates, we find there’s no additional layer – no purpose – to improve our well-being.

Researchers have also found that people who feel like their lives have purpose live longer and show decreased risk of cardiovascular problems (2). And as you age and prepare for retirement, living with purpose helps to limit your risk of cognitive problems, such as Alzheimer’s (3).

The purpose of work and family.

Most of us tie purpose to the things that we spend the majority of our time doing: working and raising our families. Again, it’s important to draw a distinction between simple happiness and purpose.

A doctor who has to deal with ill people and mortality might not consider her job “happy” all the time. But helping people gives her that critical sense of purpose that rounds out her feelings of well-being.

Taking care of children will, at times, make even the most patient parents want to pull their own hair out. But feelings of love, connection, and responsibility make both happy family vacations and frustrating afternoons in timeout purposeful.

If you feel like your life is lacking purpose, start by looking for misalignment in these two areas. Is your job “just a job” that pays the bills? How could you pivot to a career that uses your unique gifts and skills to create purpose? Or are you working so hard that you’re missing key family events, which are also critical to your sense of purpose? Are there ways to improve your work-life balance?

It’s never too late.

Many people believe that living and giving generously with their time, talents, and/or finances is a luxury they can’t afford, especially once children, mortgage payments, and college tuition enter the picture. However, research indicates that senior citizens frequently cite “dying with their music still in them” as one of the biggest areas of regret when they look back on their lives, meaning, chances they didn’t take, ideas they never pursued, or opportunities they watched pass by. It’s not money they’re regretting, it’s the sense of purpose they missed out on that would have improved their Return on Life.

Of course, not everybody can have that “perfect” job. But even in those situations, think of it not so much about the work you do, but “who you bring” to the work you do. Find ways to bring purpose to even the most mundane jobs and how that work is helping others.

And it’s never to late to find that purpose. Even seniors can discover new passions that will give their golden years purpose if they approach retirement with an active, enthusiastic mindset.

If you’re having trouble getting started, try asking yourself, “Why do I get out of bed in the morning?”

Is it to take care of your family? If so, then consider planning a family vacation for the summer. Coaching your child’s youth sports team. Turning dinner time into a group cooking activity. Or setting a regular monthly date night with your spouse.

If you find purpose in helping those in need, consider finding a volunteer position for a few hours a week.
Do you like to express yourself? Then perhaps start a blog or a digital photography website that you can work on in your free time. Turn that spare bedroom into a craft room.

And if you think your purpose is simply to make more money? Well, then maybe you need to start asking yourself better questions. Remember, money is a means, not an end.

We encourage you to come in and talk to us so that we can start a new dialogue about how your financial plan can help you get the best, most purposeful life possible with the money you have.

Sources:

1. https://www.ncbi.nlm.nih.gov/pubmed/11148302
2. https://www.ncbi.nlm.nih.gov/pubmed/26630073
3. https://jamanetwork.com/journals/jamapsychiatry/fullarticle/210648

What is Your “Philosophy” on Insurance? Here’s What You Should Consider

Admin · Nov 18, 2020 ·

Forming an insurance philosophy requires you to think about the people and possessions that matter the most to you. How do you want to protect them? What are the risks involved? Are monthly premiums or out-of-pocket payments more in line with your philosophy and your financial means?

Here are four important questions that will help you crystalize your insurance philosophy and make sure it is well-integrated in your financial plan.

1. Do you currently have some level of insurance to cover the most important things in your life?

Life, health, auto, and homeowner’s insurance are the big four. Having some level of coverage in these areas should be considered the baseline for most people.

But what about other special considerations? Are you partners in a small business? Are you insured against your partner dying or leaving the company? Are your business assets protected in case you get sued? Do you own a classic car, art, or jewelry that you want to protect?

Take a moment to list the important things beyond the “big four” that you should consider insuring. Are there reasons you haven’t insured them already?

2. What are your risk levels?

Your health and your spouse’s health are probably the two biggest factors to consider when thinking about your risk levels. Depending on your ages, this isn’t just a matter of life and death. Be mindful of any ongoing conditions or family medical history that could impact the main income earner’s ability to keep working until retirement.

Do you work in a volatile industry? You might benefit from supplemental income insurance if you’re at-risk for sudden unemployment.

If your job is dangerous, or if you have any thrill-seeking hobbies you just can’t give up, you might want to buy more life insurance.

Do you live in a part of the country that’s prone to natural disasters? Is your home’s safety at risk?

What other things in your life affect your risk levels?

3. Do you have the financial capacity to pay out-of-pocket when trouble hits?

The more you pay monthly in premiums, the lower your out-of-pocket costs will be. And the higher your risk levels, the more you probably should be paying in premiums every month.

But people who choose to self-insure don’t always see insurance that way. They would rather pay minimal premiums and cover the rest out of pocket as necessary.

Things can get expensive at either extreme. After a fender bender, you’ll love your tip-top auto insurance as you drive away from the body shop with paying just a small deductible … but those premiums won’t be dropping any time soon. On the other hand, you might forgo an umbrella insurance policy and save the money … until you get sued for creating property damage.

Interestingly, we’ve seen people with substantial means, people who have the ability to self-insure things like long-term care insurance, yet still choose to get it. Why? Because they’d rather spend their money on an insurance premium than possibly spend much more of their hard-earned money on healthcare costs. Or they just like the security of having that potential big expense covered.

Each one of us is different and that’s why it’s important to intentionally consider your insurance philosophy.

4. If something happens to you, is your family provided for?

Life insurance isn’t as exciting as investing in the stock market or watching your super nest egg grow. Thinking about it doesn’t make us happy. It’s not an asset that you will look forward to cashing in one day. It’s simply there for your family when they will need it the most.

Some people rely on life insurance that’s in their work super fund. But in most cases, this insurance only provides one or two times the insured’s annual salary. A term life insurance plan can provide years of assistance to your family should the worst happen.

What is your insurance philosophy?

As you’ve gone through this list and considered these questions, you may have felt your insurance philosophy settling at one end of the scale. Or maybe you felt your philosophy sliding between wanting to pay higher premiums for some things and wanting to pay out of pocket for others. Remember, one size doesn’t fit all. You may decide to buy a two-million-dollar life insurance policy. You might also decide to leave your classic car underinsured and under a tarp in your garage. Maybe grandma’s pearls just need a fireproof lockbox until your daughter grows up.

Ultimately, the particulars of your insurance plan aren’t as important as having a plan in place for each of the things you want to protect. If you need help getting that plan in motion, please make an appointment to come in and discuss your insurance philosophy with our team.

3 Ways to Know When You Are Ready to Retire

Admin · Nov 18, 2020 ·

There’s a pretty good chance that your parents and grandparents retired just because they turned 65. Today’s retirement is a bit more complicated than that. While age is still an important factor, your ability to connect your financial resources to your lifestyle goals is what will truly determine if you’re ready to retire.
Here are three important markers to cross before you crack open your nest egg:

1. You’re financially ready.

The most common question we field from our clients is, “How much do I need to retire?” While there’s no magic number to hit, a few key checkpoints are:

  • You have a budget. Many clients who are preparing to retire tell us they’ve never kept a budget before. Time to start! If you have any big plans for early in your retirement, like remodeling your home or a dream vacation, let us know so we can discuss front-loading your annual withdrawal rate.
  • Your debts are paid. No, you don’t necessarily need to pay off a fixed-rate mortgage before you retire. But try to reduce or eliminate credit card balances and any other loans that are charging you interest.
  • Your age, retirement accounts, and Social Security plan are all in-sync. If you’re planning on retiring early, be sure that your retirement accounts won’t charge you any early withdrawal penalties for which you’re not prepared. Also keep in mind that the earlier you take Social Security the smaller your payments will be. Can you afford to live without Social Security until age 70 to maximize your benefits?
  • You and your spouse have a health care plan. Medicare insures individuals, not families. If only the retiree is 65, the younger spouse will need to buy health care elsewhere.

2. You’re emotionally ready.

We spend so much of our lives working that our jobs become a large part of our identities. Rediscovering who we are once we stop working can be a major retirement challenge. To prepare for this emotional transition:

  • Talk to your spouse ahead of time. Don’t wait until your last day of work to discuss how both of you feel about retirement. What do each of you imagine life will be like? What are the things you’re excited to do? What are you afraid of? What can each of you do to make this new phase of life as fulfilling as possible?
  • Make a list. What are the things you’re passionate about? Something you’ve always wished you knew more about? A skill you’d like to develop? A cause that’s important to you? An ambitious business idea that was too ambitious for your former employer?
  • Check that your estate plan is in order. It’s understandable that many people avoid this part of their retirement planning. But putting together a legacy that could impact your family and community for generations can have tremendous emotional benefits. The peace of mind that comes from knowing the people you care about are taken care of can empower you to worry a little less and enjoy your retirement more.

3. You’re ready to do new things.

Ideally, the financial piece of this conversation should make you feel free enough to create a new retirement schedule based on the emotional piece. Plan your days around the people and passions that get you out of bed in the morning. Some ideas:

  • Work at something you love. Take a part-time job at a company that interests you. Turn that crazy idea you couldn’t sell to your old boss into your own business. Consult. Teach. Volunteer.
  • Keep learning. Brush up your high school French by enrolling in an online course. Learn some basic web design so you can showcase your photography portfolio or create an online store for your crafts. Sign up for cooking classes and get some new meals in your weekly rotation.
  • Get better at having fun. What’s the best way to lower your handicap or perfect your backhand? Take lessons from a pro. The second best? Organize weekly games with friends and family.
  • Travel. Planning out a big vacation can be a fun project for couples to do to together. And while you’re looking forward to that dream trip, take a few weekend jaunts out of town. Stay at the new bed and breakfast you keep hearing about. Visit your grandkids. Go on the road with a favorite sports team and enjoy the local flavor in a different city.

If you’re nearing retirement and struggling with these issues, working through the Return on Life tools with us might provide some clarity. Let’s discuss how we can help get you ready for the best retirement possible with the money you have.

  • Important information

Cornerstone Wealth Solutions Pty Ltd
ABN 57644823218
AFSL 537488

Information on this site may be regarded as general advice. That is, your personal objectives, needs or financial situations were not taken into account when preparing this information. Accordingly, you should consider the appropriateness of any general advice we have given you, having regard to your own objectives, financial situation and needs before acting on it. Where the information relates to a particular financial product, you should obtain and consider the relevant product disclosure statement before making any decision to purchase that financial product.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsAccept
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are as essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
SAVE & ACCEPT