Most financial planning starts with numbers. How much have you saved? When do you want to retire? What will you spend? How long does your money need to last?
Those are important questions. But here’s another way to think about your financial future: Write a letter to your 80-year-old self.
It may sound more like a journaling exercise than financial planning, but that’s exactly why it can be useful. Instead of thinking about “retirement” as some vague period in the future, you’re thinking about an actual person: you.
Step 1: Picture Her Life Before You Think About Her Money
Before you write anything about savings or investments, imagine an ordinary Tuesday when you’re 80. Don't limit yourself to the traditional picture of retirement. This is about your life.
Try answering:
- Where do I hope to live?
- What do I want to still be doing?
- Who do I want nearby?
- What would make everyday life enjoyable?
- What would make life easier?
Now you have something much more useful than a generic retirement goal. You have a picture of the life your money may need to support.
Step 2: Think About What You Want Money to Make Possible
Next, think about the role you want money to play in that life. Maybe you want enough flexibility to travel without worrying about every expense. Maybe remaining in your home is important to you. Maybe you'd like to help grandchildren, give generously to causes you care about, or pay for additional help around the house.
Your letter might include promises like:
- I promise to save enough to give you choices about where you live.
- I promise not to spend so much helping everyone else that you don't have enough for yourself.
- I promise to plan for healthcare rather than simply hoping it works itself out.
- I promise to leave you enough room in the budget to have fun.
These aren't financial goals yet. They're priorities. The numbers come next.
Step 3: Think About What You Don't Want Her to Deal With
Sometimes it's easier to identify what you want by thinking about what you hope to avoid. Do you worry about becoming financially dependent on your children? Maintaining a house that's too much for you? Having plenty of assets but not enough accessible cash? Being unable to afford help if you need it?
Write those concerns into your letter, too.
For example:
“I don't want you to stay in a house that no longer works for you simply because I never made a plan to move.”
Or:
“I don't want you to feel guilty about spending the money I've spent decades saving.”
This can uncover financial planning issues that aren't obvious when you're only looking at account balances.
Step 4: Don't Forget Your Present-Day Self
There's a danger in any future-focused exercise: deciding Future You deserves everything and Present You should stop having fun.
That's not the point.
Ask yourself what you aren't willing to sacrifice for your 80-year-old self. Maybe you want to keep traveling now while you're healthy enough to enjoy it. Perhaps helping your children is an important use of your money. Maybe you'd rather live in a smaller house someday than give up experiences today.
Put that in the letter, too.
Good financial planning isn't about maximizing how much money you have at 80. It's about making intentional tradeoffs between the life you're living now and the life you hope to have later.
Step 5: Turn Your Promises into Decisions
This is where the exercise becomes particularly useful: Read your letter and look for promises that require action.
If you wrote, “I want you to have choices about where you live,” maybe it's time to consider whether your current home fits your long-term plans.
If you wrote, “I don't want you to depend financially on the kids,” you may want to review your retirement income and long-term care planning.
If you wrote, “I want you to enjoy the money you worked so hard for,” perhaps your retirement plan needs a spending strategy—not just a savings strategy.
Try identifying three promises in your letter that you can start working on this year. They don't have to be dramatic. Increasing retirement contributions, reviewing your estate documents, talking with your children, updating beneficiaries, researching future housing options, or simply understanding what you can comfortably spend could all count.
Ready to Write Your Letter?
Set aside 20 or 30 minutes and start with:
Dear 80-Year-Old Me…
Then use these prompts if you get stuck:
- I hope your everyday life looks like…
- I hope you still have enough money to…
- I hope you never have to worry about…
- I want you to have choices when it comes to…
- I hope I've made things easier for our family by…
- I don't want you to regret that I spent too much on…
- I don't want you to regret that I didn't spend enough on…
- One thing I'm doing now that I hope you'll thank me for is…
- One promise I'm making to you today is…
Writing the letter is the easy part; turning those promises into a financial plan takes a little more work. At C. Beach Brown, we can help you look at the bigger picture: what you want to enjoy today, what you want to protect for tomorrow, and the decisions that can help connect the two. Contact us to start a conversation about the future you’re planning for.