One Size Doesn't Fit All

In today’s age of online personal finance advice, it's easy to feel overwhelmed and anxious by articles, podcasts, or social media posts that definitively tell you how much money you should have saved by 30, 40, or 50. “You should have three times your salary saved by age 40” or “You’re behind if you’re not maxing out your retirement account every year”. While these clickbait headlines can offer a general framework, they often ignore the complexity and individuality that financial planning truly requires.

As a financial planner, I’ve worked with hundreds of different individuals and families that have different situations. There is one thing that I have learned while working with them all: no two financial journeys are the same. The idea that everyone should hit the same milestones at the same ages is not only unrealistic, but it can also be harmful to those that perceive themselves as “behind”. What you need isn’t one-size-fits-all, boilerplate advice from a stranger on the internet, but a personal financial plan developed with an advisor that works to understand you and your needs, and draw a financial roadmap that accounts for your unique circumstances, goals, and values.

Why Generic Financial Benchmarks Are Not Ideal

While benchmarks can serve as general targets, they’re often based on a “perfect” scenario - a consistent career trajectory, no potential health issues, no major life disruptions, and a steady investment environment. However, we all know life rarely works that way.

These benchmarks ignore variables like career changes, health challenges, caregiving responsibilities for an older generation, regional cost of living differences, or starting a business. One size does NOT fit all: financial planning must be fluid and personalized.

Consider the following two individuals: Amy started working at 18, while Eric pursued higher education and started their career at 28. By the time Amy is 40, she will have over 20 years of earnings, savings, and potential investment growth. When Eric turns 40, it’s very possible he may only just now be gaining the financial flexibility to save after years of paying off student loan debt. Should both be expected to have three times their salary saved by 40? Clearly, the comparison is flawed, and their individual circumstances influence their overall financial picture.

Now let’s consider how Eric might feel when comparing his situation to the benchmark. It’s a common response I have heard all too often: “I’m already so far behind I will never be able to retire. What is the point of saving?” This is a dangerous mindset to have - anxiety or hopelessness can trigger when people measure themselves against external generic benchmarks. That anxiety can lead to poor decisions in the form of excessive risk-taking or avoiding financial conversations altogether.

Over the course of my career, I have worked with hundreds of different individuals and families. I’ve developed financial plans where the household had $500k saved at retirement and the plan showed success. Conversely, I’ve also worked on plans for which a household had multiple millions, and the plan did not show success due to excessive spending or other factors. Your retirement picture and your financial plan is often entirely dependent on you. Financial planning often shines the light on what we can control, empowering us to make better, more proactive decisions.  

Financial Planning Is Just As Much Art As It Is Science

The true essence of financial planning is telling the story of you. It is not just about keeping up with a spreadsheet but also about defining what matters to you, then creating a plan that aligns your resources with your goals. That might mean prioritizing home ownership over early retirement. It might have to account for taking time off mid-career to travel or pursue a passion. It might mean focusing on debt reduction now, with the understanding that retirement savings will increase later in life.

At Comprehensive Wealth Management, we help clients identify and refine their vision of living richly. We build strategies that work to achieve a desired level of volatility and return that reflect your values. A good plan evolves as your life evolves - the only constant in the financial planning process is change. We find that having a plan makes people feel more in control and allows them to understand the "why" behind their decisions. They feel confident that even if life throws them a curveball they can revisit and update the plan to stay on their own personal track.

So, the next time you read a headline telling you where you “should” be by a certain age, pause and ask yourself: Is that destination even on my map? Because the most important financial plan is the one that fits your life and nobody else’s.

If you have questions or are interested in learning more about what your financial map could look like, Contact Us at (425) 778-6160 or click HERE schedule a meeting with a CWM advisor.

Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money. Diversification and asset allocation do not ensure a profit or guarantee against loss. Past performance is no guarantee of future results. This communication is informational only and is not a solicitation for investment advice.

Comprehensive Wealth Management, LLC (CWM) cannot guarantee that the information herein is accurate, complete, or timely. The information herein is general and educational in nature and should not be considered investment, legal, or tax advice. CWM makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any position taken in reliance on, such information. Consult a financial, legal, or tax professional regarding your specific situation.