So often in the financial advice industry it all comes down to investments and return. We believe that part of that focus is due to media outlets’ reporting which revolves around investment markets and daily return statistics of major indexes (Dow Jones, S&P 500 and the like). As we see it, another reason for this is the industries fault in that so many financial advisors provide advice solely on investment portfolios while nearly ignoring their client’s big picture.
One of our favorite authors does a great job at boiling down complex financial issues into a very simple sketch. We have shared one of our favorites with you in this commentary, and it makes this point better than 1,000 words ever could! The important thing to remember is that you are so much bigger than your investment portfolio. Your goals, values and life are so much more important than what that quarterly account statement illustrates.
As advisers, part of our job is to focus on each piece of your financial life (like investments), but where we can ultimately lend the most value is when we help our clients look at the bigger picture- their complete financial life. The perspective this brings leads to the ability to make better decisions, better potential to reduce risk in your financial life, heightened awareness of opportunity and a higher propensity to goal attainment. This is why our firm is so dedicated to performing real, ongoing financial planning (everything about your financial life except investments) for our clients.
The next time the market swoons just remember that what is most important is your big picture. This has everything to do with what you want to accomplish in your life for your family, friends and community and has nothing to do with the daily returns of a market index!
Posted: July 5, 2014
Authored by: N. Perry Moore, CBEC™, CFP®, ChFC®
Direct Phone: 812-602-6306
In our quarterly investment commentary we typically discuss the performance of the financial markets, market valuation levels, where we see attractive opportunities and the asset allocation strategies we’re implementing. We’d like to switch gears this quarter and touch on what matters the most – you, your family, and your goals. We work hard every day to help you live your best life! Obviously, generating positive returns on your investment portfolio is crucial to your long-term financial success. Helping you do this is an important aspect of our service and a responsibility which we take very seriously. But if you think about it, it can be tempting to focus too much attention on one’s investment portfolio. Other aspects of your life are equally, if not more important! That is why in every interaction we have with you, we spend much of our time carefully listening to the things that matter the most in your life, then we help you weigh the options available to align your capital with your values.
As we’ve stated many times, we’re not market timers and we’re not trying to find the next hot stock to buy. In fact, our investment approach may be viewed by some as being quite boring because it is focused on the long-term, not the next three months. Global diversification, risk awareness and a disciplined process are the tenets of our philosophy.
We use an Investment Policy Statement (IPS) to establish appropriate risk parameters for your portfolio. This risk-based approach is focused on your return objectives and your comfort level with market volatility. The discipline provided by your IPS is a benefit because it helps keep you (and us as your adviser) on track when the markets inevitably go through a tough period. Five years after the end of the great recession clients that continued to follow the discipline established in their IPS are thankful they had this tool in place for guidance.
As always, we welcome your questions and comments concerning your investments, and we certainly appreciate the trust and confidence you have placed in us. Thank you for your business!
Posted: July 5, 2014
Authored by: Chad A. Sander,CFP®
Direct Phone: 812-602-6302
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