June, 2019 | Live a Life By Design

Disruption: Is It The New Way of Life?

Posted on June 24, 2019June 13, 2019 by Jimmy J. Williams, CPA/PFS, CFP®

In the past 50 years, our world has seen exponential change that affects all aspects of life. We now have more than 4 billion people using the internet for some purpose – work, purchasing, medical, research, etc. Have you found a pay phone in your community? Whereas, these devices were found on each corner, now cannot be found within most cities!

Some areas of life have benefited from disruption: orthopedic and other complicated surgeries are now performed with robotics, ordering food on an app on your smartphone that delivers to your location within minutes or safety in our vehicles is so advanced that emergency services are automatically called if in an accident. These benefits are simply the ideas of ten years ago. If that is truly the case, what does it look like 10 years from now?

Stress is created on individuals when their environment changes and the individuals seem to be simply blown about by the winds of change. To combat this feeling, we work with our clients to find a benchmark in their lives that is stable and within their control. For example, we create a Family Index for them to clearly and simply see their progress achieved in their investment portfolios.

These three steps will help you mitigate stress from change.

Acknowledge that certain activities in life are beyond your control. As an individual, you do possess a certain amount of control in your world. You should develop and maintain your residence in a manner that is relaxing, soothing and calm. If you wish to reduce stress in the home, turn off the TV! You have no control of the actions of politicians or can you impact the next international war that is brewing somewhere on the globe.
Create and follow routines in life that require less decision-making energy. Personally, I have written, and follow, a morning routine and evening routine that helps me stay focused and keep my world intact. This sounds a little different, right? Think about the confidence level you would generate if you could control your environment and start you day with such positive thoughts!
Adopt a mindset that limits the amount of change allowed in your life. You do not have to own the “latest and greatest” of gadgets: phones, television, automobiles, kitchen appliances, etc. The great news today is that you can adapt to change at your pace. You are in control of you!

In our profession, we are blessed with the most cutting-edge technologies to help us serve our clients’ needs and communicate with them in a more efficient manner. The goals and desires of retirees have become more complex and our role is to reduce the complexity to a simple, implementable process to bring confidence, not stress, to our clients. Markets change, health changes and other areas of life will not impact your mental state if you implement the above three strategies.

Do you feel more stress today than 10 years ago? If so, seek out someone that can provide far more than simply investment advice. You are far more than money. If you are concerned about the world changing around you, do me a favor this week. Turn off the TV, read a great book and look in the mirror. You are in charge of your world!

Related Podcasts

Planning for Disasters is Good Business

Posted on June 17, 2019June 6, 2019 by Jimmy J. Williams, CPA/PFS, CFP®

Recently, many American citizens have been subjected to tornadoes, flooding and other natural disasters. During these times of stress, it is critical to possess a plan that helps you stay focused and prevent panic. We believe the best time to prepare for inclement weather is during the time of sunny days.

The first item on your Disaster Plan should be the accountability of all family members (including our beloved pets). Communicate where and what should be the actions of each family member should a fire, flood or a tornado strikes the residence. Educate children on the location of preparedness kits (I hope you have one!) and the safest shelter area within your home or at a local FEMA-Certified Safe Area. It is during these frenetic times that we often overlook simple steps that could mitigate or prevent significant loss of family and/or assets.

A properly designed Preparedness Kit should contain, at least, the following items:

Weather radio
Blankets
Prescriptions and other medical equipment
Flashlights with extra batteries
Water and non-perishable food for at least a couple of days
Pet food and treats (keeping our pets stress-free is important to their health)
First Aid Kit
Cellphone and/or tablet
Clothing and coats/jackets
List of important numbers (i.e., doctor, veterinarian, insurance company, other family members, etc.)

Next, place the preparedness kit in the safe area or in a known location that is readily available for a quick trip out the door. Designate someone in the family to be responsible for the kit including its contents along with its placement in the safe area.

If the disaster is fire-related, discuss the plan of each family member meeting at a specific location away from the home to account for everyone. This could be a tree, a neighbor’s house, etc. Again, don’t forget your beloved pets. However, if it is a decision to save your family or your pets, we respectfully understand the love of our pets, but believe it is in the family’s best interest to focus on the human family members first. If your home is designed with more than one floor, an escape rope ladder should be stored in a convenient location upstairs to allow for family members to easily descend the upper floors to reach safety.

Lastly, inform the local fire and police departments that your family has a safe area and may need to be checked on in the event of a disaster. This piece of communication could be critical if your safe area is within the home and the structure is razed to the ground by tornado.

To help our clients during these tumultuous times, we have developed a Preparedness Kit Checklist which includes review dates to determine the kit is maintained properly. To request this complimentary checklist, simply go to www.compasscapitalmgt .com and look under the “Resources” tab. While you are on the site, you may wish to look at other helpful videos and white papers to improve your family’s lifestyle.

Don’t let Mother Nature dictate your future, take charge of your life by being prepared. You will be glad you did!

Related Podcasts

Father’s Role in Financial Planning

Posted on June 14, 2019June 13, 2019 by Jimmy J. Williams, CPA/PFS, CFP®

Happy Father’s Day to all fathers reading this column! This is your special day. You may be wondering what a financial column and Father’s Day have in common. From the days of the founding of our country, fathers have played a special role in the family unit. In the past, fathers were the breadwinners of the family while mothers were responsible for the household and children. Being a father myself, I now see the inequity in this allocation of duties, but I digress.

Father’s Day is not simply a time of celebration but also a recommitment of our priorities and dedication to our loved ones. If your family is not experiencing the joy it once did, it is time to evaluate your role and contribute in a different manner to the family’s benefit. It is not the making of money that brings happiness to your children. It is the investment of time, your time with them that creates lasting memories and provides a platform for your children to learn valuable lessons that will serve them well in life.

Lesson 1: Find something you are passionate about in life and choose it as a career.

In most cases, your passion will provide the courage and defiance to failure that is needed to reach success. Water collected in a puddle does not produce much energy. However, water heated to 212 degrees produces such force that it can power an locomotive! Fathers should teach their children to be resilient in the face of challenges and think creatively to become the next Steve Jobs or Thomas Edison.

Lesson 2: Giving your time to those in need is a wonderful use of one’s day.

In today’s environment, the “me” attitude has created a selfish mode within our country. Most Americans are generous with their money. However, to forsake one’s personal goals to contribute to a needy cause does not inspire some people. I have been a member of McAlester Lions Club for most of my career. The most memorable times in my volunteer career have been those days spent helping less fortunate individuals reclaim their lives and rebuild families. By helping these individuals capture a second chance at a productive life, I received a feeling of accomplishment that can’t be measured in money or net worth.

Lesson 3: Saving for the future should be a habit.

Fathers teach their children many habits during their lifetime – some good, some bad. However, the habit of saving for the future should be a family legacy that each generation continues. By creating a habit of saving each pay period, each month, whatever frequency your cash flow creates, you will grow in confidence, security and capability. Typically, you need to save in three “buckets” in this order:

Emergency Fund (next 90 days)
Lifestyle Fund (cars, homes, education, vacation, etc.)
Lifetime Fund (retirement and legacy)

Focus one hundred percent of your initial savings on the first bucket, Emergency Fund. After saving sufficiently to cover 90-days’ living expenses, then start saving in the other two buckets.

Becoming a father is a simple act. Being a dad takes commitment, time and resources. You have the capability of all three of these characteristics. Take action and hug your kids today. The gifts you receive on Father’s Day are your children’s respect, love and admiration!

Related Podcasts

Maximizing Your Day

Posted on June 10, 2019June 6, 2019 by Jimmy J. Williams, CPA/PFS, CFP®

Have you looked at your calendar lately? If many of you are like me, the days seem to be passing quicker than I experienced in my younger days. Now, I am not focusing on the topic of aging. I am, however, focusing on the more important aspect of time – maximizing the enjoyment of time’s passing.

When was the last time you sat down and simply wrote about the day’s events and documented the memories of the day? I highly recommend journaling to my clients, friends and family as a means of storing memories, working through difficult decisions, dispensing of emotional feelings without the fear of reprisal and, most importantly, to provide yourself the time needed to remove thoughts from your mind for complete and total rest. For many years, I have kept journals that are private and will not be reviewed by my family until my passing. The hope is that the stories will inspire my heirs to contribute to their communities, provide for those neighbors in need, seek a spiritual solution to many of life’s challenging times and to simply live a life by their design that leaves the world in a better place than they found it.

During my daily interaction with people, I often seek times to help others see the world for more than a harried existence where one day looks the same as all the others. We have three important facts of life to be thankful:

We were born as human
We were born or live in the United States of America
We can change our future by making decisions against nature

To be born human is vital in that we can utilize a highly sophisticated brain to change our futures for better. We can form or build our environment to our own liking. Unlike some reptiles, we can place warm clothing on our bodies and brave the frigid temperatures to accomplish our goals for the day. Unlike other mammals, we can elect our leaders in a formal election versus a duel or fight to the death to be the alpha male.

Living in the United States of America is one right, and privilege, many of us take for granted. Watch CNN, Fox News or any other news channel and watch the turmoil that is thrust upon the citizens of other countries by tyrants and other factions who wish to impose their will. Despite the sometimes disruptive nature of our freedoms and rights, the USA is the most sought after country for personal freedom, opportunity and a brighter future by those who are under despotism, tyranny and socialism. We are not a perfect country; however, our citizens have the right to participate in the development of the country’s future.

Changing our future is easily performed by writing down our desired outcomes and formulating the steps to achieve them. This is the reason for a semi-annual review of our goals. We, as humans, can change course today and seek a better outcome than we have experienced the first half of the year. Don’t simply allow your life to be drifting in the proverbial winds of chance. You have an opportunity to close the chapter of last month, last week or yesterday and form a brighter future.

Seek out positive, impactful and complimentary information by listening to podcasts, reading good books and associating with people that have kindness as a personal trait. One such podcast we recommend is “Live a Life by Design”. This podcast can be found on iTunes, SoundCloud, and right here on livealifeby.design.

Remember the words of Zig Ziglar, the renowned motivational speaker and author, “You were designed for accomplishment, engineered for success and endowed with the seeds of greatness.” The secret to success on this planet is to make tomorrow your best day ever! Then simply repeat this step everyday.