Lego monster

Legos, Financial Planning, & the Markets

Our middle son Graham is obsessed with Legos these days. I began to sweat when we embarked on assembling the 3-in-1 Alligator/Snake/Frog 343-piece set he received. After opening the box and slowly reviewing the instruction manual, my anxiety started to melt. The manual contained all 272 steps with simple pictures to help with the construction. What began as overwhelming transitioned to almost therapeutic.

We spent 20 minutes a day building the alligator one piece at a time. The biggest concern was no longer the number of pieces but rather Graham’s little brother, Riggs, who wanted “in” on all the action. Graham affectionally coined Riggs a “Lego Monster.”

Kicking the Can vs. Getting Started

Building a financial plan can bring about the overwhelming feeling I experienced when opening the Lego kit.

  • Where do you start?
  • Which piece is most important?
  • How long will it take?
  • Is there a Lego Monster?
  • What if I lose a piece?

Start Small, Gain Momentum

I just finished reading “The Laws of Wealth” by Daniel Crosby. He thoughtfully articulates the importance of designing a systematic process to avoid known risks. The same process applies to the construction and maintenance of a financial plan. Keep the steps simple so you gain momentum, most importantly, but also meaningful change over time. Here are a few examples:

  • Budget – How much do you spend? Said differently, how much do you save?
  • Invest – Systematically invest in a taxable brokerage account, just as you do in an employer-sponsored retirement plan. Then, you’re not timing the market or consistently buying at a market high or low. Let’s take the emotion and decision out of it!
  • Time Horizon – Identify what you’re working towards and match the time horizon to your portfolio. For example, if your goal is 5-10 years out, tuning out the short-term noise is more doable.
  • Goals – What do you want to accomplish? Said differently, let’s explore what’s possible. Regardless, identify it!
  • Investments – Build a diversified portfolio, rebalance systematically, and avoid timing the market.

Embarking on this process will help you maintain composure and avoid costly mistakes when a “Lego Monster” visits. This may include, but certainly isn’t limited to:

  • Market correction – Defined as a 10%+ pullback from recent highs
  • Economic recession
  • Disruption in family cash flow – Job loss, medical expense, unforeseen home expenditure.
  • Global pandemic 😉

Who’s Your Lego Monster?

We’re committed to making the process approachable and straightforward when constructing a financial plan. We’re here to guide you down your path of achieving big results. Contact us when you’re ready. After all, you likely have “Lego Monsters” in multiple aspects of your life!