I personally believe that the world of financial advising has gravitated too long around who is going to give us better returns or interest rates, and ignoring somewhat, the market uncertainties.
Our company’s belief is that at retirement age or just before (age 55-70), we need to change our perspective on investing and switch gears thinking about income instead of ½ a percentage more in return. Because it is the income that our investments are going to create that is important and will carry us through golden years. To not outlive this income is very important as well
Therefore, here is what a good advisor should do or be for you…
Advising should always be driven by “life changes.” Life changes determine in the early years how investments should be allocated and in the later years, how the income should be created and distributed. As advisors we need to know intimately the lives of our clients and the changes that life brings them. In the early stages we need to look at job changes, loss of a job, marriage, divorce, birth of children, death of a spouse of a parent. Later in life, we need to be concerned with the sale or purchase of a business, inheritance, addiction, special needs, sickness, death and many other important life changes.
All of these life changes bring inevitably money changes and the advisor should be there to coach and help you sort through all of it. These are events that affect your life. The advisor must assist in assessing the life choices first, than strategize the financial decision that will support that unfolding goals and objectives of the client’s life plan and its financial requirements. Therefore, in addition to financial planning there is a need for life planning, to meet life transition as they come up.
So, the financial advisor should help you plan your will, estate plan, and other needs such as Long Term Care. In the end, you should be a person to the advisor and client second. At PreserveFIRST we are looking forward to the rest of your life when you hire us to work for you!