Hindsight is 2020

Hindsight is 2020

With two months remaining in 2020, you may be thinking, “I can’t wait for this year to come to an end.”  An unrelenting streak of craziness – health, weather, economy, politics – has already made this year one for the record books.

But we have also observed some positive changes, and that’s what I want to focus on here.

Looking at life through our financial-planning glasses, we have seen an intentional shift to a simpler and slower version of life as a theme for many of our clients.

Current trends include an interest in identifying how to create a less complicated life going forward, shifting goals and priorities, and a genuine desire to help others through philanthropy.

Some of the questions we hear are:

Liquidity has become very important as clients seek the peace of mind that comes from having sufficient cash reserves, especially in retirement when you’re living off your assets.

Liquidity of time has also become important. Many who have been thrust into working from home have discovered that they actually prefer it – no more time-wasting commutes, an opportunity to eat lunch with family, the enjoyment of simply being at home. The biggest adjustment seems to be knowing how or when to shut off the day.

Many of our business-owner clients have said that they plan on streamlining operations, developing longer term, hybrid work models that allow reduced workspace and overhead costs for the company, while still allowing for collaboration and human interaction.

Business owners have shared how the pandemic is sparking American ingenuity, forcing adaptation and rethinking of how, when and with whom they do business.

At the same time, families have seen a major impact as they have had to adapt their homes to new uses as office, school and sanctuary.

Here is an example from my own life. 

When the world as we knew it shut down in March, my family was forced to spend the next six or so months together. My college senior had to leave NYC and rejoin the family’s daily life.  Thwarted in his push to become an adult, my college sophomore found himself back home with his parents. At the same time, my high school junior was relieved that he was no longer the focus of Mom and Dad’s undivided attention.

At first, we were uncomfortable being back together with so much uncertainty. But as days turned to weeks and then to months, we became a pared-down version of the family that had always been on the run.

Things we had to make time for in the past became our new normal – taking walks, reading, solving puzzles, playing board games, and of course, watching Netflix. We were energized as we reconnected with each other.

As of this writing, my oldest is finishing her senior year in college at home; my middle child is in-person at his college in a hybrid model; and my high school senior is attending class 5 days a week. I am following a hybrid model, and my wife says she actually misses me when I do go into the office.

Across the country, our views of philanthropy have also changed as a result of this crisis. With so many in our own communities needing help, I see more interest in local giving. For some, it’s giving a 20% tip for takeout service; for others, it’s donating to local community support groups that target your own neighbors. A true sense of community has emerged.

Organizations have had to rethink how they deliver services to the community, but they have also had to reinvent the way they raise the funds to support them.

Who had ever heard of virtual marathons, 5k’s, or bike races? Or streaming a night at the theater? And what about a new favorite, the virtual cocktail party?

In light of all this, now may be the time to reevaluate your current financial plan or maybe create the plan you have been avoiding.

The world has changed as have all of us. We can help you simplify, organize and manage your path forward.

I am looking forward to the end of 2020, but there are parts of it I will cherish forever.