One of the challneges that happens in every advisory relationship is how trust either shows or doesn't show. Watch this video to find out what we think about this issue and how you can build trust with your advisors.
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The main reason you want to hire an investment/wealth manager is to help you avoid investment disasters, if possible. If you look at the research firm Dalbar, you’ll see that too many investors make the same mistakes and as a result, get a return that’s much less than the market.
Here’s a list of 7 that you should think about.
You think what happened yesterday will happen tomorrow.
Your first question might be what the heck is client facing planning? We’ll get to that in a few minutes. Just be aware it’s something you should be interested in.
Why you might ask? Because it puts you at the center of the planning engagement. Too often people like you might be convinced to do a financial plan, then you turn over your information over to a financial planner and wait for your financial guru to tell you what you need to do.
The problem with this is you are giving up your power and waiting for an “expert” to tell you what to do. I don’t want you to do this and here are 6 reasons why.
First, what is client facing planning?
We often think of scenario planning to be something that only businesses do. Why don't you watch this five minute video and learn why scenario planning is just as important for individuals as it is for businesses?
All families have wealth. For some it’s financial wealth and for others it’s values led wealth. Still, for others there’s both and for way too many it’s none of the above.
I want you to make sure that you have family wealth and you manage it well.
I’m lucky. My father has done an incredible job of managing both in our family. Through his leadership and wisdom, he’s passed lessons he’s learned to both my sister and myself and through us to our children. Here are some of the things I’ve learned along the way:
You must talk about your values.
Learn what it takes to have a successful investment portfolio. Let me know what you think in the comments below.
I remember my sister talking about buying a car and how the car salesman would only talk and look at her husband. I can’t tell you how annoying she found this. She kept going to different car dealers until a car salesman would work with her and not her husband.
You might say that she should have left her husband home. If she did that, she wouldn’t be able to use her knockout on whether she wanted to use that particular car dealer. She wanted to make sure that the car dealer worked with her and not her husband. In the end, she really didn’t care as much about what type of car, she cared about being dealt with as the key buyer.
I know this sounds kind of silly and as I read this, I would agree. At the same time it brings up a really important point……..Women make many more financial decisions that affect a family than we admit.
My own opinion about this.
I bet this has happened to you. You’re working on something and you hit a snag. Or, you’re having a transition in your life. Instead of focusing on what’s going well you do what most of us do, you focus on what’s not working. What would happen if you decided to instead focus on what’s good about the change?
There’s a type of planning called appreciative inquiry. It’s really pretty simple. Instead of focusing on what’s not working you build off what is working.
Thinking negatively slows you down.
Life spans continue to increase. If you're alive at 65, there's a good chance you can be alive at 85. I know there comes a time when you won't want to work or create any more, but do you want to have twenty or more years of this type of life?