In a recent meeting with a client, we started talking about his upcoming retirement. As we have discussed previously, we at Gainplan believe that almost every money decision has two dimensions – math and emotion. These two dimensions are part of the reason that financial decisions are rarely cut and dry. I think my conversation with this client was illustrative of the potential dilemma faced in these situations.

As we were catching up and finishing our breakfast, I asked what he was thinking regarding his retirement timing. Our analysis indicated that he has accumulated enough assets to retire tomorrow (the math). Yet his answer was very waffling. I asked, “What if you had double the money saved, could you retire?” His first answer was an immediate yes (the math). “Would you?” A pregnant pause, followed by pensive silence (the emotion). His “reasoning” was that he did not know what he would do all day.

It’s been our experience over the years that the emotional dimension usually trumps the math and this client is the perfect example. Not recognizing those two dimensions would have resulted in a very different conversation between the two of us; because while I would preach math, the client would be hung up on the emotional. Due to our understanding of the two dimensions, our conversation moved positively into a discussion of his options to fill his newfound “free time” – volunteer work, business mentoring, travel, part time work… It did not result in the “yes you can”, “no I can’t” conversation that I have seen so often.

The math of money is important, but so is the emotion behind the money. Think about it. 

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