Time is of the Essence

Kevin Ihrke, CFP® | Dec 03 2025 16:00

Shortly after starting my first "real" job out of college, the iPhone became available. There were predecessors to the iPhone which could be dubbed as "smartphones," but the iPhone changed the course of history when it launched.

 

Prior to that, the smartest phones could take some low-resolution pictures, maybe allow you to read and send emails, maybe play some digital audio, and some could even send faxes. 

Fast forward to 2025 and that little device holds within it the entirety of my day-to-day life - calendars, email accounts, To-Do lists, banking, texting and messaging apps, access to medical records and health care professionals, access to the kids' various school applications, pictures of travel and family, social media apps, music, movie streaming, sports news, and games to play when I'm stuck on a flight without Wi-Fi. And yes, I do still use it to make phone calls.

 

If you have one, you know what I'm talking about.

 

The power of that device enables me to track almost every detail of a very busy life. Sure, I could get by without one, but I can't imagine navigating life without all of that information at my fingertips.

 

Your financial life is no different.

 

Walking through life without a financial plan is like walking around without a smartphone. Sure, you can track all that information and data elsewhere using a variety of methods - review all your separate banking, investment account, and insurance statements, using a paper calendar, storing copies of important legal documents in various places, making phone calls when needed for important information, etc. It could be done. That's how we all lived prior to the advent of the smartphone.

 

It's certainly more convenient to access all of that in one place.

 

Having a financial plan is like having a smartphone for your finances. All your relevant financial information consolidated in one place at the ready. Imagine being able to access the entirety of your financial data in real-time with forward-looking projections so you not only know where you stand in the moment, but even more importantly, where you're headed.

 

It allows you to make decisions without wondering "What if?" Or worse, "I'll figure it out later."

 

December brings with it a season of joy, celebration, and time with family and friends.  It's also a great time to give yourself the gift of financial clarity.  Revisit your financial goals, review your progress made throughout the year, and make any adjustments needed as you head into the new year.

 

And it's a good time to get started if you don't have a plan.

 

A true financial plan goes beyond just "How long will my assets last in retirement?" It involves everything related to your finances.

 

I like to simplify the all-encompassing and oftentimes complex nature of financial planning into one easy to understand acronym - R.E.T.I.R.E.

• R - Risk Management
• Do you have the right type of insurance?
• Is it adequate?
• What employer or group benefits do you have?
• E - Expenses and Income Planning
• What are your income sources?
• What are your monthly living expenses?
• How do your expenses change in retirement?
• What are your liabilities?
• What's the interest rate on any debt?
• What are the differing rates of inflation on your various expenses?
• How does it all add up 5, 10, 15, 20+ years from now?
• How will those expenses be covered? 
• T - Tax Planning
• What are your current and future projected income taxes?
• What strategies can be implemented to mitigate future taxes?
• Are you having to pay tax on Required Minimum Distributions that you don't need in retirement?
• What's the expected tax on your future estate?
• Will your beneficiaries and heirs be hit with a tax burden?
• Are you optimizing your available deductions?
• I - Investment Planning
• Do you have the right investments for your phase of life?
• Do you need income or growth? Or both?
• Do you hold too much or too little of a particular asset?
• Does your investment portfolio align with your financial goals and current or future income needs?
• R - Retirement Planning
• What are your retirement goals?
• Do you have a tax-efficient withdrawal strategy?
• Where do you withdraw money from first?
• How much do you need to withdraw?  Is it adjusted for inflation?
• What's the optimal age for you to take Social Security?
• What's the right type of Medicare plan for you and your health needs?
• Who's going to care for you as you age?
• How are you paying for increased levels of care as you age?
• E - Estate Planning
• How is your property titled? Is it appropriate for your estate wishes?
• Do you want to avoid probate?
• What legal documents do you need? 
• Who's handling your estate or trust after your death?
• Does your family know your final wishes?
• Who has authority to act on your behalf?
• What's the projected value of your estate at death?

And those are just the big questions. It may seem like a lot. And that's because it is. Your finances impact almost every aspect of your life. Having a real, comprehensive financial plan means there's no question left unanswered.

When it comes to financial planning, like most things in life, there are elements within your control and those that aren't. Having a plan allows you to better navigate the elements outside of your control.

 

Of all the elements that impact your financial plan, the one that makes the biggest difference is time. When it's gone, it's gone. You can't make more time.

 

Starting early, before something happens, is the best course of action. No one likes making decisions - especially financial decisions - on the fly.

  

The late writer and poet, Antoine de Saint-Exupéry, has a quote that sums up life without a financial plan. You may be familiar with it - "A goal without a plan is just a wish."

 

If you want to give yourself confidence that your financial life is working for you - beyond just making sure your monthly expenses are covered - then you need a financial plan.

 

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Kevin Ihrke is a CERTIFIED FINANCIAL PLANNER® professional. His firm, Investment Insights, LLC is located at 508 N 2^nd Street, Suite 203, Fairfield, IA 52556.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER® certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Investment Insights, LLC & Cambridge are not affiliated.

Comments and questions can be sent to kevin@getyourinsight.com. These are the opinions of Kevin Ihrke and not necessarily those of Cambridge, are for informational purposes only, and should not be construed or acted upon as individualized investment advice. Investing involves risk. Depending on the types of investments, there may be varying degrees of risk. Investors should be prepared to bear loss, including total loss of principal. Past performance is no guarantee of future results.