By Sam Buchanan
Most people believe they are making progress with money because they are taking action.
They are saving.
They are investing.
They are doing what they were taught to do.
Yet there is a large disconnect between the amount of their progress and the assurance of their financial security. I have found that people are far better at growing their assets than crafting a plan that reflects what they care about.
This is what I’ve come to think of as The Accumulator’s Trap.
At some point, we got into the excellent habit of saving and investing. But then life got busy and we never stopped to question what we were saving exactly for. It is my true passion to help people design and implement a financial structure that reflects what they most care about.
Due to our instant gratification society, we are quick to move onto the next “hack” or to optimize the next thing. In turn, we miss the opportunity to allow our money to serve as an extension of our values. This happens when people start planning in the opposite sequence; they start with optimization (tax and investment strategy), move down into funding the optimal strategy, and then at the end, wedge that into their values. I firmly believe that all families would have more peace of mind if they started with values, then moved into funding, and lastly into optimization.
Accumulators can struggle with always deferring and never enjoying their money. As financial planners, we help accumulators work out the painful tension between saving for tomorrow and enjoying the now. A lighthearted, effective strategy I’ve seen work with clients navigating this tension is by giving them a fictitious “spending license.” By allowing us to do deep financial planning work, we can help clients balance overfunding future goals and under-enjoying their life.
By avoiding the accumulation trap, we become better spouses, parents, coworkers, and members of our local community. We create the space for our most important values to make their way to the people we care about most.
What I’ve found really moves the needle is not returns: It is living a life built on purpose instead of account balances grown by default.
Sam is a lifelong Jackson native and is an investment adviser with Mascagni Wealth Management. He passed his CERTIFIED FINANCIAL PLANNER® exam last November, showing his dedication to serve his clients in the highest capacity. Sam helps retirees, business owners, and families accumulate, spend, and pass on wealth in a tax-efficient way. He focuses on bringing clarity to complex financial decisions so clients feel confident about the choices they are making today and how those decisions shape the life they are building over time.