Do you have a pile of investments you call a nest egg. Or do you have a retirement plan?
I have both. The bulk of my investments are in a balanced portfolio that rebalances every quarter and the holdings are reviewed every couple of years. Then I have an E=Trade account and a Vanguard account that I play with. I should have dumped the Vanguard when I saw the signs, now I have ridden it down…
Here is where it gets tricky. All financial advisors believe they implement plans, but typically it is just a money grab and reinvesting your assets so they can get a payday. I worked as compliance for two firms in the distant past and have seen this happen, too many times. As a CPA working with my clients I have seen it as well.
A plan really involves more than the organizations software spitting out a generic proposal. The CFP model that most real planners use incorporates the following areas of your financial life:
- Cash flow and net worth.
- Risk protection strategies.
- Property casualty.
- Life insurance.
- Health insurance.
- Long-term care insurance.
- Wealth accumulation strategies.
- Tax-smart investing strategies
- Retirement income planning.
- Estate planning strategies
If they are not doing a deep dive into you goals and expectations, walk away and find a better one. This is too important for you to rely on amateurs, most financial advisors is their second career with no previous background in finance.
I review my cash flow weekly and net worth quarterly. In 2022 I revamped my insurance coverage on my P&C coverage, commercial and residential. I am also in the process of rewriting my estate documents for attorney approval.
You need to take control of your future and not leave it in the hands of those who may not have your best interests at heart. You them as advisors, but you make the decisions.