Why is money important to you?

Falcon Wealth Advisors?Co-Founder and Wealth Advisor?Cory Bittner, CRPC?, recently joined me on?Upticks?to discuss why money is important to our clients, how we can all align our spending and our values, and much more. A summary of my conversation with Cory is below.

Jake:?“Why is money important to you?” – is one of the most important questions we ask clients, because we know they choose to work with us to enhance their financial literacy and explain exactly what?their?financial plan means to?them. We build customized financial plans for all our clients and these plans align with why money is important to the client. Today, I want to share some common responses we hear from clients about why money is important to them and encourage readers to think about it as well. I find it interesting that many?Falcon Wealth Advisors?clients default to the “Maslow’s Hierarchy of Needs” when asked why money is important to them. The base level of our needs as humans includes necessities, survival, shelter and the ability to pay our bills. There’s of course nothing wrong with this answer, as these base level needs are critical to happiness.

Cory:?Wouldn’t these physiological needs make money important to anyone, though?

Jake:?Yes, for some people I think these basic human needs carry a lot of weight, while for other people they are obvious.?

Cory:?And for many, it probably is related to their upbringing and what they’ve had or haven’t had in their life.

Let’s continue to explore Maslow’s Hierarchy of Needs. Next up are safety needs.

Jake:?Some of the safety-level answers we hear from clients include maintaining their lifestyle, security, living comfortably, becoming debt free and having continued stability. I know one of your clients said safety-level needs are a “ticket to the ride.” What did they mean by that?

Cory:?I think what this client was trying to stress is that money is required to ride the ride of life. Without money, you’re not able to enjoy life as much.

Jake:?That’s interesting. I often hear?Falcon Wealth Advisors?clients talk about the importance of maintaining their lifestyle. If a new client meets with us and isn’t sure how much income they will need in retirement, I will suggest we plan for them to need as much income in retirement as they had while working. This helps ensure they can maintain their lifestyle and continue to live a comfortable life.

Next up on the ladder of Maslow’s Hierarchy of Needs is love and belonging. For many?Falcon Wealth Advisors?clients, this includes being taken care of, having experiences and making memories with family and friends, helping their children and others, volunteering and more.

Money is important to many clients because it offers them an opportunity to volunteer in retirement. And many clients want to know their spouse will be taken care of should anything happen to them, which highlights the importance of having a financial plan in place. Travel is an interest for many clients in retirement, which certainly falls under experiences.

Many people who are retired worked hard for decades and weren’t able to spend as much time with family as they would have liked. Money provides them the opportunity to enjoy love, relationships and community. It’s been proven that having a community leads to a healthier life—most people aren’t built to be isolated.

Cory:?Indeed. Most answers I receive about why money is important fall under either “safety needs” or “love and belonging.”

Jake, where in this hierarchy of needs do you think people sometimes go astray?

Jake:?I think people often get tripped up when they compare themselves with others. If your neighbor tells you they’re earning a 30% rate of return on their portfolio, it’s tempting to wonder why you’re not. First of all, people can exaggerate when they talk about money, or only talk about when they make money—not when they lose it. Second, your financial plan is customized just for?you. We invest your money to align with your financial plan, and that plan reflects why money is important to you.

I think people also should try to avoid allowing the media to impact their investment strategy. Whether it’s meme stocks, cryptocurrencies or the media sowing fear, it’s important to try to tune it out and focus on your financial plan, which we build for the long haul at?Falcon Wealth Advisors.

Cory:?Well said. In addition, I think people often lose sight of why they’re saving and accumulating. It’s not to see how large you can grow an account and tie your identity and self-worth to that account. Instead, it’s to have money to use to meet your own hierarchy of needs. That’s why it’s important to think about why money is important to you, no matter your age or life stage.

Jake:?When I meet with a?Falcon Wealth Advisors?client, I make sure to check in and ask them why money is important to them?right now. I do this because someone’s hierarchy of needs will likely change over the course of their life. That’s why I stress that the financial plans we build for clients can and should change as your life does.

Next up on Maslow’s Hierarchy of Needs is esteem, which for our clients includes traveling, being stress free, independence, not being a burden, retiring early, staying retired and more. Money is important to self-esteem and confidence; we’re likely to feel more content when we know we not only have enough money to cover the necessities, but can also spend it on things that make life enjoyable, like traveling. Money doesn’t make you happy, but having it can make your life less stressful.

And the top rung on the hierarchy is self-actualization. For?Falcon Wealth Advisors?clients, this means maximizing their time, providing a legacy, taking advantage of opportunities, continuing to improve, having lifestyle options and exploring different cultures.

I really love the idea of exploring different cultures and being aware that our society is different from others around the globe. And I think having lifestyle options is important, as many clients want to buy a second or third home, for example, so they can enjoy what they worked so hard for. In regards to leaving a legacy, a lot of?Falcon Wealth Advisors?clients leave assets to their children, grandchildren, charities and others.

The idea of money offering the ability to maximize time really hit home for me. Personally, money is important to me because it allows me to leverage my time and spend my time in areas where I can have the greatest impact. For example, growing up, I often cut the grass at my family’s house. But today, I don’t mow the grass at our house—I hire someone to do it.?This isn’t because I’m lazy. Rather, it’s because I choose to spend my time in other ways, whether it’s meeting with clients in the late afternoon and evening, spending time with my wife, or pursuing passions, like playing golf.

Why’s money important to you, Cory?

Cory:?My answer is similar, Jake. Which makes sense, considering we share a profession and a business. I think we can have more of an impact meeting with clients instead of rushing out the door at 4:30 p.m. to get home and cut the grass. Money can’t buy happiness, but it can buy time.

In the book?The Psychology of Money, someone said independence is not having a mortgage and not using an alarm clock. If you don’t have a mortgage or use an alarm clock, you’re probably not in debt and are able to do what you want on your own time.

Jake:?That’s well said, Cory. If you’re reading this, we would love to hear why money is important to you. Write it down, share it with loved ones and send it to us. We can help you make sure your financial plan is aligned with your priorities and values. If you would like to learn about how we can help, please contact?Falcon Wealth Advisors?today. You can reach me directly at?[email protected].

Clients choose to work with us to enhance their financial literacy and explain exactly what?their?financial plan means to?them.

Hightower Advisors, LLC is an SEC registered investment adviser. Securities are offered through Hightower Securities, LLC member FINRA and SIPC. Hightower Advisors, LLC or any of its affiliates do not provide tax or legal advice. This material is not intended or written to provide and should not be relied upon or used as a substitute for tax or legal advice. Information contained herein does not consider an individual’s or entity’s specific circumstances or applicable governing law, which may vary from jurisdiction to jurisdiction and be subject to change. Clients are urged to consult their tax or legal advisor for related questions.