By Money & Finance Editor Ellen Duffy, CFP™
I started taking Pilates classes many years ago. At the time, I was about 60 pounds overweight and fresh off my second pregnancy in three years. My husband and I had adopted our first daughter along the way, so we had three children under the age of two and a half. I tried everything…but couldn’t lose the weight. I felt heavy in every sense of the word.
I went to the local Y and had the good fortune to meet a personal trainer. She was also a Pilates instructor and encouraged me to give it a try. As she put me through some remedial exercises, I was surprised and embarrassed to learn that I could hardly move. My instructor told me that the fountain of youth is in the spine, and we must stay flexible and nimble. She said that as we age, we become rigid, our arteries can become rigid, our thoughts can become rigid and that being inflexible can accelerate the aging process. We must endeavor to stay nimble in all things – mind, body, and spirit. This conversation almost 20 years ago stayed with me.
Nimble is defined as quick and light in movement; agile. Doesn’t that sound beautiful?
In my role, I work with women (and men) who may feel bogged down or lack confidence and clarity about their financial life and future. This is a not a good feeling! To help simplify financial matters, identify strengths, areas for improvement, and a pathway forward, I’ve created a one-page financial profile. The profile follows the acronym N.I.M.B.L.E and looks like this:
N: Net Worth – What is your net worth? (Assets minus Liabilities)
I: Income- What does household income look like? Gross and net sources: payroll, bonus, social security, pension, etc.
M: Monthly expenses – How much does it cost to be YOU every month? What is fixed/mandatory? Discretionary?
B: Buckets- What is in your buckets? Cash reserves, retirement funds, Roth/ pre-tax, other investments, college savings etc.
L: Life Insurance – Is there life insurance on board? Long term care insurance? Where is it held? What does it look like? Other policies?
E: Estate plan – Is the estate plan complete and current? Are beneficiary designations on all accounts accurate?
In assessing the points above, we review savings rates, investment strategy, goals, tax considerations, trajectory, and overall financial well-being. This baseline profile informs strengths, weaknesses, and recommendations in a simple way.
Generally speaking, if you have a familiarity with the metrics above – you may know more than the average bear (or bull) about your financial life! It’s rewarding to help folks who may have relied on others for their financial wellbeing, and/or were afraid to ask to feel informed and empowered about their finances. Let’s get N.I.M.B.L.E!
Ellen Duffy is a Certified Financial Planner™, founder and owner of Parkway Wealth Management, a comprehensive financial practice with a focus on women and families. Learn more about Ellen and Parkway Wealth Management at www.parkwaywealth.net. Investment advice offered through Private Advisor Group, a registered investment advisor.