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 CFP™ simplifies money and investing so that her clients feel confident about making decisions for their financial future. She is a Certified Financial Planner™ and owner of Parkway Wealth Management, an independent wealth management firm in Boston offering investment advisory and planning services. After spending 20 years in investment management with “downtown” firms, Ellen founded Parkway Wealth to serve clients in an authentic way and offer personal financial advice. Her business has a focus on women, helping women feel more confident and informed. Today, women have more responsibility for the financial well-being of the household than ever, yet despite this increased role and responsibility, many women feel uncomfortable talking about money and investing. Ellen works with clients to understand their questions, concerns, hopes, and fears. Financial planning is about freedom and choices. Ellen lives in West Roxbury with her husband Tim Turley and their three teenagers. An active community member, Ellen believes an integrated approach to “health, wealth, community” can build a strong foundation for a lifetime of financial well-being. (Investment advice offered through Private Advisor Group, a registered investment advisor.)
Health, Wealth, Community – It’s All Connected. Investment advice offered through Private Advisor Group, a registered investment advisor.