Plan now for inevitable detours ahead

By Jon Bancks / Guest Column

Those of us who avidly follow the American space program have a reason to celebrate in July: We are eagerly awaiting the launch of Expedition 52.

This much-anticipated launch will send crewmembers from NASA, the European Space Agency and the Russian space agency to the International Space Station.

This display of continued international commitment to space exploration always brings to mind the extraordinary Apollo 13 mission, an historic example of how well-laid plans must often change mid-course. Unless you’re a Gen Xer or millennial – in which case, you would have experienced Apollo 13 solely through the film version starring Tom Hanks – most of us recall the harrowing events in April 1970.

The plan was to go to the moon, land and return for the third time. Instead, equipment failure dramatically changed the plan.

In a split second, commander Jim Lovell’s goal of touching down on the moon was altered and replaced. The mission instead became to return three astronauts safely to Earth using the [mostly] damaged equipment at hand.

As an engineer by training and a financial advisor and planner by choice, I see many parallels between space travel and investing in the future. With Apollo 13 and the Expedition 52 launch in July, the ultimate end goal is the same: to return home safely. Similarly, each of us has a plan or goal of retiring successfully, but we each have a different definition of success.

An inordinate amount of planning was completed before Commander Lovell and his crew embarked on their journey. The contingency plans came into play as they were faced with the unexpected and forced to adjust in real time to reach their end goal of returning home safely.

Successful retirement likely involves a defined lifestyle – where and how we live, how we help our families and communities, and being able to do the things we love. Getting to the point where we are able to achieve these goals means we must keep an important idea front and center: Successful retirement doesn’t just happen – it requires forethought and planning, and will inevitably be impacted by detours. Plans will need to be adjusted depending on when the detour happens in our journey, but the important part is that you have planned in advance!

Like the astronauts of Apollo 13, how we approach each detour and the corresponding choices we make will have lasting impacts on our success. The later in life a crisis happens, the fewer the options and the more critical it is to engage experts.

We know from historical record that the experts at NASA were crucial to the ultimate success of Commander Lovell and his crew returning home safely. Similarly, solid financial planning doesn’t happen in a vacuum and it’s ill-advised to wait until a detour arises.

Like many Americans, I’ll be watching the night sky in July, hoping for a glimpse of Expedition 52 on its way to the International Space Station, content in the knowledge that planning ahead buffers the impact of any detour – both in space and in our pocketbook.

 

Jon Bancks, CFP CPWA, is a financial advisor and first vice president with Morgan Stanley, The Bancks Halyard Group in Cedar Rapids, a wealth management team focusing on multi-generational wealth management through goal-based investment advice.