36 minutes | Aug 28th 2020

83 – The Life Stages of Financial Planning Part 1

Click below to listen to Episode 83 – The Life Stages of Financial Planning Part 1 The Life Stages of Financial Planning Part 1

Discover the 4 life stages of financial planning.

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We all have different phases of our lives that demand unique financial requirements. Financial planning is definitely not a “one size fits all” or even a “one size fits most” type of solution. We each fall into separate categories when it comes to income, expenditures, debt, and savings. However, most of us can divide our lives up into 4 different stages, which Bob and Bailey discuss in part 1 of our episode on “The Life Stages of Financial Planning”.

Phase 1: Beginner – Normal age 20-39 (19 Years) – graduate college and debt, first real job, marriage, start having children, purchase first home, starting to pay off college debt, rising incomes

Phase 2: Intermediate – Normal age 40- 62 (22 years) – most expensive time of life, second or third child, larger homes and cars, major career advancement, teenagers, college cost, kids get married, accumulation years for retirement, possible early retirement in later years

Phase 3: Graduate – Normal age is 62-87 (25 years) – retirement years, downsizing to smaller home, no longer accumulating but withdrawing, Recreational vehicle and travel, grandkids, and possible loss of spouse and health issues in later years as well.

Phase 4: Handoff to Next Generation – Normal age 88-100 (12 Years) – thinking about the next generation, great grandchildren, and selling of all assets including home and giving to children; very expensive health care costs.

HOSTED BY: Bob Barber, CWS®, CKA®

Mentioned In This Episode CIS Wealth Management Group Website Bob Barber, CWS®, CKA® Bailey Theaker Ep 82 – Are Rental Homes a Good Investment? Website Ep 16 – Procrastination Website Ep 56 – The Loss of a Spouse Website Ep 76 – Inheritolatry Website

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EPISODE TRANSCRIPT

[INTRODUCTION]

Welcome to “Christian Financial Perspectives”, where you’re invited to gain insight, wisdom and knowledge about how Christians integrate their faith, life and finances with a Biblical Worldview. Here’s your host Christian Investment Advisor, Financial Planner, and Coach, Bob Barber.

Bob:
Welcome to today’s podcast. This is Bob Barber, along with my helper,

Bailey:
Bailey Theaker.

Bob:
Alright. Hi, Bailey. How are you today?

Bailey:
Doing well. How are you, Bob?

Bob:
Well, it was fun. This is the second podcast you’re going to help me with. I’m trying to figure out exactly what we call you. You’re like the person that is listening and thinking, “Okay, I got this question I want to ask.” So we do we call you the question person?

Bailey:
I’m a professional question asker.

Bob:
And so again, if you didn’t hear the last podcast, I’d invite you to go back and listen to that one. By the way, that was a really interesting podcast I made that was on residential real estate and is it really the great investment we all think it is. I want you to say what you did in the last one because somebody might not have heard that. What was the reason you thought that we ought to just make them right here instead of me always interviewing somebody else?

Bailey:
Yeah. Well, since coming onto the team, I’ve had the chance to listen to several of your podcasts. I mean, you have what, over 80 out now. And so I’ve listened to a lot of them. And after listening to them, there’s so much good content on there, but then just being around the office with you, I hear you come up with ideas all the time. I hear you talk about things and I feel like I’m just a sponge, just absorbing all this information and things I didn’t know.

Bob:
Don’t absorb too much cause there’s a lot of craziness up here too.

Bailey:
And so yeah, take it with a grain of salt, but as I was listening when we were trying to schedule some more people, I just thought, “Bob, why are you asking so many people all these questions? Why isn’t somebody sitting down and asking you these questions?” I mean, you’ve been in the finance business for how long now?

Bob:
Over 30 years.

Bailey:
For 30 years.

Bob:
I mean, I started with real estate investing from 1984 to 1992. And then entered into the full financial services in 1992 because, quite frankly, I got bored with real estate. So, I love the finance side of things. And it’s really interesting, before we get into today’s topic, which this has to do with today’s topic. Learning about money and how money operates is kind of a game and learning how to play that game properly because money is a tool. Like a game or a tool, you’ve gotta learn how to use money. As a kid, can you guess what my favorite game was? It was monopoly. I loved monopoly. I would usually just whip up on my competition. People were like, what are you doing to me? But I guess it was just a knack I had. I always understood how money worked, even from the time I was 14 to 15 years old. My brother and I were buying a few homes and fixing them up back then. We didn’t realize fixer uppers were big back then. This is before HGTV or anything. So, I’ve always been of the entrepreneurial spirit, and I believe strongly in free enterprise and understanding how money works. That’s what this podcast is about. It’s teaching people how money works. And today we’re going to talk about all the phases, the life phases, of financial planning, which is really taking the tools, because there’s a lot of tools available, to see how that works, and how does that apply to these different phases of life? You know me, I love God’s Word. Most people don’t realize that Jesus spoke more on stewardship and how we handle money than he did on heaven and hell combined. And all you gotta do is just open up and just start looking at from how the widow gave her last mite, that’d be maybe pennies today, but it was everything she had and how that meant more than a rich ruler just giving a small percentage, to the parable of the talents to the way you hire somebody. He hired the three people, and the guy that came in at the end of the day got the same pay as the guy at the beginning of the day. So, there’s just so much in God’s word. I am a Proverbs nut, as you know, too. I love the book of Proverbs.

Bailey:
Yeah. And I think that that’s something that makes us really unique is that I’ve heard a lot of people talk about money throughout the years, but you bring in this perspective of not only having been in the financial business for 30 plus years, but having done it from the wisdom of God’s word, and that’s a really unique place to look at the world around us and look at money and our finances. I mean, I don’t feel like most of us that’s the approach we take, and so I’m just excited to learn from that perspective.

Bob:
The book of Proverbs, if you just follow the book of Proverbs, and do everything that says, your financial world will be in order. I’m not a big prosperity theologist guy. Okay. I mean, I don’t claim it and speak it and all that, but if you follow it, you will be financially secure and safe because it has given us wisdom and how to operate our finances. It’s just all through Proverbs. “Consider the ant. It stores its provisions in summer and he gathers his food at harvest.” That’s what it says in Proverbs. By the way, it says, “Consider the ant you sluggard.” It’s kind of funny how it says that, but it’s really about building cash reserves. In Genesis 41, when Joseph came to Pharaoh and Pharoah said, ̶