Sometimes I hear something that just stops me in my tracks. This past winter I introduced myself to a stranger as a “Financial Planner.” He responded, “Well, that’s an oxymoron!” Like giant shrimp or army intelligence?

Over this past year and a half investments have fallen in value. People of all types - savvy and not, active and passive investors, diversified and not - have watched their own portfolios shrink. They have cancelled their future plans and postponed their dreams. Some are philosophical about this; others feel like victims. Most are in pain.

Lately, many people express a sense of resignation - we are all in this together and there is nothing that you or I can do about it. Nothing could be further from the truth. Resignation and acceptance of the status quo are nothing more than a loss of hope for a better life and world. Without hope there can be no courage to take action.

Good financial planning is the exquisite combination of hoping and taking action for the best possible outcome while still preparing for the worst. During times of excessive fear, when we see the world through somber and dark glasses, the tendency is to focus on preparing for the worst, if we are not frozen by that fear.

It was not very long ago when we saw the world through rose colored glasses and positioned ourselves for growth forever.

There are two steps you must take when you plan your finances:

figuring out a balanced approach in spite of tendencies to see only one aspect of the whole and taking action. Good financial planning is more than selecting what you believe will be your best investment. Instead it includes:

• Deciding what your best possible lifestyle could be,
• Cataloging your resources, including your financial ones - investments and cash flow, that you can use to achieve that lifestyle,
• Researching resource alternatives and analyzing different combinations of them and their possible consequences, taking into account the best and worst outcomes of the alternatives,
• Creating the Financial Plan which takes into account the best and worst outcomes, with the understanding that history will not necessarily repeat itself,
• Finding the courage to act on the Financial Plan and doing it,
• Keeping on top of the Financial Plan to take into account changes in your desirable outcomes, your circumstances (including your resources, health, family, and community), and the economy.

Which of these can you do when times are bad? All of them. Which of them can you do when times are good? All of them. Why not align your values, desirable outcomes, and resources now? Does this take courage and hope? Absolutely.

If you lack the time, interest, and/or skills to do these components of financial planning yourself - get help. In fact, having a (professional) accountability partner, such as a Financial Planner, should speed up the process and make it more effective for you.