Make Well-Informed Decisions
The subject of money stirs a variety of emotions. It is easy to get caught up with media coverage and their opinions. As an investor you will hear many others comment and opine about how to invest in the market. There is no shortage of people willing to share their latest hot stock tip or how they intend to “beat the market”.
The psychology of long-term investing means being prepared to weather the volatility in the marketplace. Short-sighted decisions are generally based on an emotional response to market events.
It is a good idea to have an investment policy statement on file with your financial professional to define your feelings about money, volatility and to help steer your decision making when markets get crazy.
Target Taxes
The types of accounts you have and the timing of utilizing the funds in those accounts will affect how you are taxed. Several tax efficiencies can be created through practices such as tax-loss harvesting, asset location and by creating a spending strategy. Taxes are not always considered because they contribute indirectly to your return but over time can amount to a large effect.
Diversify. Diversify. Diversify.
When a portfolio is properly diversified it may affect your risk-adjusted return. A diversified portfolio has the benefit of mixing asset classes across the investment spectrum to minimize overexposure. In certain cases, asset classes can be evaluated for negative correlation so that if one moves up, the other tends to move down. There are also non-traditional asset classes that may be introduced depending on your specific situation.
Consider Various Investment Vehicles
The investment universe is made up of more than just traditional stocks and bonds. The complexity of the alternative investments available generally make investors leery of investing in them because they can be difficult to understand. For instance, an annuity may be something to consider if you are focused on your income during retirement. An accurate assessment of which type of products are right for you follows a thorough financial planning process.
Establish An Estate Plan
You have spent a significant amount of your lifetime accruing your wealth. Having an estate plan protects your wishes and distributes assets in the manner you choose. There are several estate planning tools that can be utilized to transfer wealth to your loved ones. A thorough estate plan will include documents such as an advance health care directive, a will and power of attorney. Having wealth transfer issues addressed in a timely manner protects you as well as the ones you love. Having your express instructions documented will give you peace of mind knowing you and your assets will be safe in the event of the unexpected.
Hire A Professional
Given the ever-changing marketplace and the complexity of financial planning we recommend hiring a professional financial planner. You can save precious time and reduce worry knowing you have a partner focused singularly on your experience. The name “financial planner” refers to a broad spectrum of professionals who generally advise clients but there is a marked difference between the services and approach they offer.
Below you will find a link to 20 Questions You Should Ask Your Financial Advisor. This brochure can be used as a reference guide when interviewing candidates for your business relationship.
20 Questions You Should Ask Your Financial Advisor
At Prentice Financial Planning, we believe the client comes first. We serve and monitor our clients’ financial plans because we hold a fiduciary responsibility to you – the client. Our Advanced Financial Planning process is a holistic approach for designing your financial future. The Prentice Playbook is prepared alongside you and contains detailed information and implementation milestones. Having your financial plan together in an easily accessible place with easy-to-understand language will promote a feeling of stability as you navigate your course through retirement.
The Seventh Rule
Enjoy it! Your retirement is something you’ve been looking forward to for many years. It is time to enjoy the fruits of your labors while a financial professional does the heavy lifting.
We invite you to explore our website to get a sense of our organization and our principles. If you are interested in partnering with us, please contact us below for your free initial consultation.
Prentice Financial Planning, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.
