Growth Still Matters. Almost every financial plan we create will include recommendations for how to invest your money. As tempted as you may be to stuff your life savings under your mattress for safekeeping, that is probably not the best approach to take. Why? In two words: Inflation and Longevity. Money that is not growing by means of investment or interest income is shrinking in value over time. And the longer you live, the more damage inflation inflicts on your nest egg. A prudent investment plan is your best defense against inflation and longevity.
But Risk Matters Too! Growth is important, but we've all learned some lessons about risk over the past couple of years! Your investment plan needs to carefully consider how risk will be managed and controlled.
Risk is a Personal Matter. We start by working with each client to determine their tolerance for risk. Can you afford to see your portfolio decline for a few years in a bad market? Even if you can afford it, will you lose sleep and be miserable? Investing is highly personal, and we will work with you to create a portfolio that provides income or growth you need while keeping risk at a level you can live with.
You Are Already a Risk Manager. You manage risk evertime you get behind the wheel of a car. You know that if you drive very fast, you will arrive at your destination sooner. But you may get a speeding ticket, or crash the car. Driving fast increases the risk that bad things happen. You can reduce risk by driving slower, even though it might take a little longer to reach your destination. But there may be other alternatives as well. You could buy a sturdier car with more safety features for instance. Or stop driving altogether and take the bus. So many options!
Investment Risk Management. There are likewise many options available to manage investment risk. You can drive slower (choose less risky investments such as bank CD's), or you can choose investment products with built in safety apparatus. You can diversify your investments so if one investment crashes, the rest of your portfolio may be ok. Effective risk management will consider all available methods of bringing risk down to a level at which you can stop worrying!
Bringing Your Investment Plan to Life.
You can implement my investment recommendations on your own, or you can retain me to do this for you. It is your choice, but I do believe there are significant benefits to retaining your financial planner to also manage your investments.
Personalized Management. No one is in a better position to manage your investments than your financial planner. Why? Weill, because I know you personally – I know your goals, dreams, fears, cash flow needs, etc. Every portfolio is personal to me, and every decision I make considers the personal story behind the money.
In contrast, the big investment firms don’t know anything about you. Their investment decisions are probably being made by the same team of whiz kids who convinced us that collateralized mortgage obligations were a good idea! Do they know (or care) what will happen to your retirement plan if the S&P 500 index falls by 35%? No. But I do. And I don’t want any mere investment index to be the obstacle that prevents you from achieving your goal!
Proactive management. I strive to keep well informed on economic events which could impact your portfolio in the future, and to keep portfolios positioned accordingly. Being proactive means taking action now to prepare for tomorrow's reality. Times seem bad? OK, but this too shall pass, so let’s be prepared for tomorrow’s recovery. Portfolio soaring? Not to rain on your party, but let’s start preparing for the next crisis, just in case. With rapid economic change apparently the new status quo, a competent, proactive investment manager can help keep you safely on the path to success despite the markets crazy gyrations.
A patient teacher. You should know what is being done with your money and why. There shouldn’t be any mystery about what your money manager is doing with your money!
More than an investment manager. You can’t ask your insurance or brokerage representative about your debt, budget and mortgages, your business, real estate, insurance, buying a car, choosing and paying for a college, planning for estate transfer, or helping you minimize the taxes due on your investment earnings. But you can ask me! In fact, I encourage my clients to call and ask for my input on all manner of financial decisions.
But hey, we've gotten way ahead of ourselves. First I need to know more about you. Where are you on your financial journey, and where are you going. We need to talk about that plan. So why not give me a call and let's talk.
Advisory services offered through Creative Financial Designs Inc., a Registered Investment Advisor. All securities offered through CFD Investments Inc., a registered broker/dealer member FINRA, SIPC, 2704 South Goyer, Kokomo IN 46902,(765)453-9600. Financial Pathways, LLC is not owned or controlled by the CFD companies.
