The Art of Goal Setting

Welcome to Wealth x Purpose!

I’m thrilled to embark on this journey with you as we dive into the world of wealth management and personal finance. My aim is for this quarterly newsletter to offer actionable insights that empower you to navigate the complexities of financial decision-making with confidence.

Allow me to introduce myself. I’m Patrick Merrill, your author and guide on this journey. I’m an experienced financial advisor and have had the privilege of working closely with executives, entrepreneurs, and institutions, helping them pursue their financial goals. I’ve spent the last 15 years growing and learning in the wealth management industry and helping clients along the way. My journey began during the 2007-2008 financial crisis in the heart of Southern California’s Commercial Real Estate scene. Since then, I’ve been on a wild ride, learning from clients and industry giants, all while balancing the challenges of family life. Early on in my career, a mentor told me I have two ears and one mouth for a reason (kind of stung, not going to lie) and that has stuck with me. I’ve listened and learned, and I am here to share.

Now, let’s jump into it:

The Art of Goal Setting

I remember a conversation with Alex like it was yesterday.

We were sitting outside a San Francisco coffee shop, and I hit him with the big question: “What are you trying to accomplish? Where are you trying to go, and what’s your purpose?” Alex was a tech executive with money flowing in, but he was spending it like it was going out of style, caught up in the frenzy of Silicon Valley.

“Why did you reach out to me?” I asked. His answer? “I need a game plan; a playbook. This isn’t what I want to do.” Alex was drifting, benchmarking his success against others, not against his own goals.

Too many of us are in the same boat, cruising through life without a clear destination. We earn, we save, we invest, but without defined goals, we’re just spinning our wheels. Think about the last time you sat down and wrote out your goals. Did you have a clear vision of what you were working toward? Or did you find yourself uncertain, unsure of where to begin or what you truly wanted to achieve? Goal setting is the compass that guides us through the maze of decisions and actions. By defining our objectives – whether they be short-term milestones or long-term aspirations – we gain clarity, focus, and purpose in our endeavors. The most effective goals are specific to you as a person and your purpose. It’s one thing to say I want to make a lot of money and live by the beach. It’s another to say I want to live in a beach town so I can surf every morning and have a career that affords me that flexibility. There’s no right or wrong answer, each goal is specific to each person. Sometimes, it’s scary to reflect authentically, and that fear can be what holds us back.

Fast forward a bit, and I’m knee-deep in Alex’s story. On paper, he was the ideal client, but success means different things to different people. For Alex, it was about spending more time outdoors with his family. Money wasn’t the endgame; it was a means to an end. He didn’t need the biggest house, he just wanted time back in nature. So, we began his journey.

Purpose

We started with purpose. Alex and his wife brainstormed, digging deep into what they wanted out of life. They wanted time in nature, so that’s where we started. What was going to give them a fulfilling life in their own words?

Alex and his wife spent time brainstorming what they were good at, what mattered most to them, and what they would do with their life if money was not an object. Once they had a vision for what they wanted out of their lives, we worked on setting and refining their goals.

Their purpose informed and shaped their financial goals, and we now had something tangible to work with. The most effective goals are the ones that are connected to your purpose and what gives them meaning, so when things go array, you can stay the course. The strategies we designed and implemented were built around pursuing these goals.

The Components of SMART Goal Setting

We got down to brass tacks with SMART goals:

Specific: Their goals needed to be clear and specific, leaving no room for ambiguity. No wishy-washy stuff. Alex’s goal? Save $200,000 for a down payment on a house in Denver.

Measurable: How do we know when we’ve hit the mark? We set concrete milestones and benchmarks to keep them on track and accountable at each of our check-ins.

Achievable: Dream big, but not too big. Goals need to be within reach. While it’s great to aim high, it’s crucial we set goals that are realistically attainable.

Relevant: Purpose should be at the center of goals, making sure everything aligns with your priorities and long-term aspirations. Goals should align with what matters most. For Alex, it was all about that mountain air.

Time-Bound: Deadlines keep us honest. Alex had a timeline, and we stuck to it.

For Alex, it wasn’t so much about wealth accumulation but rather leveraging the wealth to pursue his goals. He and his wife no longer felt the need to swing for the fence personally or professionally. If they could be systematic and thoughtful in their approach, they both could now see their progress over time. For them, that became a real super power – consistency and discipline.

Strategies to Pursue Success

It isn’t as simplistic as it may sound … find your purpose, set goals, rinse, and repeat. What happens at day 90, or year five, how can we set ourselves up in pursuing our goals.

Here’s where the rubber meets the road:

Reflecting on Your Motivations: What makes you tick? Figure that out first.

Breaking it Down: Big goals are daunting. Break them into bite-sized pieces.

Writing it Down: Alex put his goals on paper, front and center.

Visualizing Success: See it, feel it, believe it.

Staying Flexible: Life throws curveballs. Be ready to pivot.

And Lastly, Overcoming Obstacles…

Oh yeah, we’ve had a few. But Alex, like many of my clients, knows how to roll with the punches. Having someone in your corner helps – a coach, a mentor, someone to keep you on track. It’s not about waiting for a wave of motivation to overcome you, it’s about showing up each day and putting in the work.

Take Action Today

I’m throwing down the gauntlet. Take a long, hard look at your goals, and start making moves. Remember, it’s not about perfection; it’s about progress.

Until next time,

Patrick Merrill, CFA, MBA, CFP?

Vice President/Investments

This information is for educational and illustrative purposes only and does not reflect any client’s identifying information. This is not a recommendation or investment advice and is not indicative of future results. Individual results and circumstances will vary. Stifel does not provide legal or tax advice. You should consult with your legal and tax advisors regarding your particular situation.