Author: Caitie Leibman

What We Mean by “Plans and Planning”

Clients, when we say “plans” and “planning,” what exactly is it that we’re talking about? From Day 1, our conversations center on you: your goals, your concerns, and how your life and your money work together. So planning, we believe, includes any and all topics that affect your financial wellbeing. 

Our planning services are included as part of our process working with clients. Some investment advisory shops do bill separately for time spent selling “Financial Plans,” so it bears mentioning that we do not. 

Instead, we tend to use wide-ranging planning conversations throughout our relationship. They’re handy when we’re first meeting each other, and they give us useful talking points over time, like when we’re reconnecting at or in between our annual reviews. 

Not every client will bring up the same topics or concerns, but generally, people’s questions tend to focus on some similar desires. Maybe some of these statements resonate with you: 

  • “I want to figure out how to organize my finances.” 
  • “I want to feel like I’m financially secure, independent, or free.” 
  • “I want to be able to support the life I want to live.” 
  • “I want to be able to create the legacy I have in mind.’” 

These desires are not universal, and they’re not necessarily linear. Not everyone moves through them like one step to the next, and sometimes we loop back around to revisit them again and again. And they take some thoughtfulness to maintain. 

But you might notice these four items do capture some trends and progressions. They cover a range of chapters in our lives—from getting started, to getting a grip on things, and then to getting what we want out of the whole deal. Once we know where we are in the process, it can be easier to get down to the details. 

Consider some examples. 

“I want to figure out how to organize my finances.” Does my monthly cash flow comfortably cover my outlays? Where does my time and money go right now? How is my job or career outlook? What are some good first steps for me given where I am? 

“I want to feel like I’m financially secure, independent, or free.” Do I have what I need in terms of an emergency fund and a support network? What demands affect my cash flow now and in the near-future? What financial challenges and financial goals can I anticipate in the coming chapters of my life? 

“I want to be able to support the life I want to live.” Am I living where I’d like to live? Working how I’d like to work? Enjoying what I’d like to enjoy? How do my saving, spending, and investing align with what I want now and what I want later? 

“I want to be able to create the legacy I have in mind.” What’s on my heart? What estate or charitable considerations are on the horizon? What opportunities have presented themselves? What impact would I like to have? 

Clients, our operation is continuing to grow, and we need to be able to serve you not only in the months and years ahead—but for the decades ahead! Your beneficiaries and the generations to come will be better served if we’re thinking about how this work persists beyond any one of us. 

That’s why we’re taking the time here to try to define our terms.  

It’s important that we’re on a common mission here. Financial planning prompts like these aren’t a script, and they aren’t something that will be “one-size-fits-all.” Instead, they give us a jumping off point. They give us somewhere to start from or begin again—together. 

Are we due for a conversation? Call the shop or send us a message, anytime. 

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What We Mean by "Plans and Planning" – 228Main.com Presents: The Best of Leibman Financial Services

This text is available at https://228main.com/2023/06/21/what-we-mean-by-plans-and-planning/.

Waffles, Friends, Work
NBC / Getty Images

“We need to remember what’s important in life: friends, waffles, work. Or waffles, friends, work. Doesn’t matter, but work is third.” 

—Leslie Knope 

I think we all can relate to Leslie Knope from Parks and Recreation from time to time. This TV heroine’s persistent optimism and love for improving her community are things that resonate with us.  

Although our first instinct is to laugh when we read the above quote from Leslie, we do think there are some great takeaways in this phrase: we can remember to cherish our relationships and treat ourselves, even as we are working towards our goals. 

Life is short, so we love to spend time with friends and family while we can. Instead of staying late at work to finish up a project that can wait until tomorrow, we learn to call a friend instead and see if we can stop by. Some days, it’s a rush to get home to a beautiful family and cuddle our loved ones. Any moment can be precious. 

We take the time to treat ourselves and relish what comforts us. What’s that one dish that takes you back to your childhood or a great time in your life? Whether it’s a potato salad that reminds you of Grandma or a dish you had on your wedding day, food is a simple way to reconnect with ourselves or others. Our bodies should be nourished both physically and mentally, so don’t deprive yourself. 

While we need to work to provide for ourselves or our families, there is more to life than your career: work is just one part of our story. Not many of us will be looking back on life and thinking, “Gee, I should’ve spent more time at work!” Instead, we will reflect on the memories we’ve made with the people we love. We work so we can enjoy all of the wonderful things life has to offer, on or off the clock. 

How do we prioritize the people or things that are important in life? It’s up to each of us. Leslie Knope is a character who is passionate about her work—but even more passionate about her friends. (Does that sound like a friendly shop on Main Street you might know?) 

We hope that the work we do together will let you spend less time stressing about your financial plans, so you can have more time to spend on what matters, from friends and waffles to whatever else is precious to you. 

Call or email, anytime.

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Waffles, Friends, and Work – 228Main.com Presents: The Best of Leibman Financial Services

This text is available at https://www.228Main.com/.

Oh, the Prossibilities!
The human brain is amazing… except when it isn’t. How else do you think the world ended up with a Shark Week?! Low-probability events, fear, fixation, and how to clear things up—in this video.

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Whitney, for the Win!

You know her name from emails; maybe you’ve even had the pleasure of speaking with her on the phone. You may remember us announcing her arrival on the team just over one year ago, when she was lending us her talents part-time via LPL Financial’s Administrative Solutions program.

Today, we’re proud to announce that Whitney Engle of Floris, Iowa, is joining our team full-time! We are employing her directly as she continues to work remotely.

Whitney will serve as our new Client Services Coordinator, continuing to work closely with Larry and Patsy on the service team and also supporting the management team of Mark, Greg, Billy, and Caitie with their various duties in research, portfolio management, and communications.

We have staffed up from time to time in recent years to continue taking care of the business. This latest expansion will have a few important benefits: now that we are an SEC-facing organization, it’s more important than ever that we stay efficient in our processes and systems.

Having another team member onboard full-time also means one more friendly face is at the ready, getting you what you need, when you need it.

“I can’t wait to spend more time getting to know clients,” Whitney said. “They are the reason we’re here.”

As we’ve gotten to know her across these months, we’ve felt so fortunate. Whitney’s skills will continue to grow in her new role of course, but she has already shown many of those qualities that are tough to teach: enthusiasm, curiosity, tenacity.

Not only does she take pride in her work, Whitney is someone who clearly cares so deeply about her family—and the menagerie of animals they keep at home! Her proactive approach to things will no doubt continue to improve the experience for all of us and for all of you.

For the months and years ahead, we know that people are key to helping us help you. So, we hope you’ll help us offer a(nother) hearty welcome to Whitney! Thanks for being with us.

Above: Whitney (left) and Caitie (right) meet up in the office in Louisville.

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Whitney, for the Win! – 228Main.com Presents: The Best of Leibman Financial Services

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That Sinking Feeling… or a Sinking Fund?
photo shows a jar full of coins, a stack of cash, and a small card that says "PLAN"

Have you ever been faced with a large expense for which you were unprepared?  

I have. It gave me a sinking feeling. 

Sinking itself isn’t always a bad thing. The term “sinking fund” originally referred to a dedicated reserve a corporation would set up to repay a debt, contributing funds on a regular basis to build up the needed amount.  

Many individuals have adapted the idea to manage their personal finances: having a sinking fund may help us avoid that sinking feeling. 

This idea came in handy as I recently set out to see how well the sources for my retirement income were matching up with my expenses. My home has a new roof, won’t need another for many years. My vehicles are fairly new; they won’t need to be replaced for years, either. 

But the fact is, someday I will need to pay for a new roof. I will need to replace a car. Furniture and appliances wear out. More predictable but “lumpy” expenses happen, too, like property taxes and planned travel. 

If my budget fails to account for these items, my budget is not really covering all of my living expenses, is it? The answer is a sinking fund, as in these examples. 

  • Home maintenance. If I sink $200 for repairs and such into a sinking fund every month, I would have $12,000 every five years. That should cover a new roof ten or fifteen years from now… or deductibles on storm damage… or a chance to repaint when needed. Likewise, $100 monthly should cover whatever appliances or furniture need replacing: that’s $12,000 over ten years. 
  • Transportation. Piling $350 monthly toward vehicle replacement ought to pile up to enough to buy a car when needed, years down the road. 
  • Annual needs. By adding in one-twelfth of my property taxes and one-twelfth of the annual travel budget each month, my sinking fund should be able to handle most anticipated lumpy expenses, in general. 

I don’t know when the dryer will need replacing—or what else might break!—but I should have the funds to meet the need. And in any of these scenarios, if the balance gets way ahead of likely expenses, I could always pare back the monthly deposit, direct that money elsewhere as I see fit. 

There are different ways to do sinking funds. I set up a monthly automatic transfer into my LPL Financial brokerage account, where the funds will go into an insured cash account until needed. If you would like to set up a sinking fund for your lumpy expenses, email us or call. 

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Sinking Feeling or Sinking Fund? – 228Main.com Presents: The Best of Leibman Financial Services

This text is available at https://www.228Main.com/.

Time Machines or Time Capsules?

Both could serve their purpose, but which sounds more useful, more versatile: a time capsule or a time machine? Well, the two might have something to teach us about our investment vehicles. More on the blog.

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Are They SMART Goals in a Dumb Pond?
photo shows a ripple growing in a blue pond with green trees in the background

Use SMART goals.

Be smart about it.

Work smarter, not harder.

You’ve probably heard this advice at a juncture in life; maybe you’ve even said it to someone else. Goals don’t get us very far unless they are explicit, meaningful, and can be tracked. Without them, aren’t they just dreams? “Hope is not a plan,” I’ve heard it said.

None of this is meant to be cynical, but I’m thinking about an important distinction: having “smart” goals won’t matter if they’re pointed in a “dumb” direction. So let’s get out of that framework. Smart and dumb are relative anyway (not to mention judgmental!).

The fit of a goal matters. For those of us youngest children who ever wore hand-me-downs, you know that even the stuff in the best shape isn’t quite right if it wasn’t picked for you. Alignment of a goal matters too: the thing better fit into the big picture. Does achieving a big purchase now help me live the life I want, without side-tracking my long-term goals? Just an example.

And your goals stay yours. Then it’s part of our job to make sure our strategies stay aimed at those goals.

We, too, strive for good fit. We don’t splash around in “opportunities” that don’t align with our principles. We seek bargains, we focus on owning the orchard for the fruit crop, we avoid stampedes. If it’s not in alignment, it could be a distraction or a tangent.

Jane Fonda once put it nicely: “If I want to make ripples, I better be sure I’m throwing my pebbles into the right pond.”

“Right” is relative to your life, your vision. We’re just happy to be part of the effort. Time to check in on your goals and their direction? Call or email, anytime.

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SMART Goals in a Dumb Pond? – 228Main.com Presents: The Best of Leibman Financial Services

This text is available at https://www.228Main.com/.

When a Ripple Comes Full Circle
photo shows overlapping ripples expanding in a pool with blue and yellow tones of water

A rare thing happened recently, an event more than four decades in the making.

Early in my career, making loans was part of my job at Louisville State Savings. One of those loans helped a trade-school graduate buy tools. He was 19 years old and ready to go to work and live on the fruits of his labor. We completed the paperwork at 130 Main—just down the street from where I am now.

This week a 60-year-old man came in to see me at 228 Main. He wanted to get his 401(k) plan rolled over so he could retire and live on his capital.

It was that trade school graduate, back to visit me at the other end of his career.

I was honored to be there at the start, and the finish, of this fellow’s career. It was a greater honor to hear him talk about his experience.

“I’m glad you’re here,” he said, “when you might have moved to Florida. I don’t want to deal with an 800 number or a computer. I like to be able to come in and sit and talk.” It was about more than his preferred methods of doing business, though.

It was about having someone to be there with him as he navigated his goals. He continued, “I need somebody that understands what I’m trying to do. You were here when I was starting out, you’re here now, and I hope you’re here for a long time to come.”

I have long suspected that every interaction can make ripples that expand to the end of time. We leave tracks wherever we go. The seeds we plant with our words and deeds grow into things we could never imagine at the time. I had a small part in getting some tools into the right hands. That young man setting out no doubt changed many people’s lives throughout his career. And who knows what that help enabled them to do?

I guess what I am trying to say is, life compounds.

Satisfaction is not exactly the emotion I’m feeling, but it’s something like the deep contentment of knowing I’m in the place I’m supposed to be, making the difference I can. Isn’t that what people want out of life, more than anything? To know they make a difference?

Start to finish—it seems like a full circle. But really, one thing leads to another, and another, and another. I’ve been a lot of places, but now I’m in the one with the best view of life, compounding.

Clients, if you want to talk about the next thing to which your life is leading, email me or call.

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In Any Language, There’s One Simple Goal

Hope, optimism, belief, notion… In our line of work, it doesn’t matter how you say it. We’re banking on the idea that, overall, we’ll see more up than down.

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