As many of us board airplanes for spring break vacations and venture toward warmer weather, we often take for granted the pilot’s flight plan. Regardless of weather or turbulence, our expectations are that these talented sky drivers will get us to the gate in a safe and timely manner. In a recent piece for425 Business magazine, Bill compares a pilot building a flight plan to how we build our own financial plan. The foundations are similar. “Establishing a financial plan is analogous to airline pilots building a flight plan to some faraway destination. They realize they might need to make adjustments along the way based on weather or traffic delays at the arriving airport. You should do something similar: Make yearly adjustments in your financial plan to address the unexpected that life throws your way.”
Read more about the number you should be using for portfolio growth rates and the impact of your own personal inflation rates.