EP 61 – You Don’t Need Another Investment, You Need the Right Plan To Achieve Your Wealth Goals

Common Sense Financial Podcast

Episode 61 You Don’t Need Another Investment, You Need the Right Plan To Achieve Your Wealth Goals

Episode Intro

There is no silver bullet investment that’s right for everyone, so beware of financial professionals recommending a particular investment or product without first understanding where you are in your life and what your money goals are first. That’s essentially like prescribing a treatment before your doctor diagnoses your problem! Find out what questions you should be asking yourself and your financial advisor to figure out what you’re trying to achieve and the best strategy for you to get it done.

Show Notes

  • Discussing investment options with an advisor without first having a strategic plan in place is like asking for a prescription without a diagnosis.
  • The majority of people are confused about how to approach their financial situation, but the people that need to hear this message the most are the most likely ones who think that this message is for someone else.
  • It’s important to know why you’re building the wealth and not just learning about what investments to add to your portfolio.
  • Asking about a specific type of investment is the wrong question to ask. You should think about your investments in the context of what you’re trying to achieve and what stage of life you’re in.
  • Recommending an investment would be like recommending a drug for a random ailment. A doctor can’t prescribe a treatment without first diagnosing the issue. In the same way a financial advisor can’t say a particular investment is right for someone without first going through what they need and where they are trying to go, but that is surprisingly common in the way people approach investing.
  • Solving a problem like retirement income planning requires specific solutions.
  • Management styles, approaches to diversification, benchmarks, performance, and other metrics are important to consider, but they come after figuring out the overall financial plan and goals.
  • People who have accumulated wealth understand how to grow money. But when it comes time to begin using the money or protecting it, it can lead to confusion and uneasiness.
  • Every investor wants to grow their money, but that isn’t enough information to be able to plan around and make recommendations on what should be in their portfolio.
  • What’s the number one priority in your life right now? Is it to build income streams for when you retire? To make sure your wife is taken care of when you die? Answering that question will go a long way to pointing you in the right direction.
  • Financial advisors are often so focused on gathering assets to manage that they often miss the forest to the trees. They assume people want their assets to grow and focus solely on that goal.
  • Financial Planning is not about investments. It’s about mapping out how to use your money now and in the future. Investments are tools used to accomplish that goal.
  • Not everyone is an expert at investing and there is often a disconnect between their needs and investments.
  • Remember, there are specific things you need the money to do for you in retirement, and you should focus on that. What do you need the money for?
  • If your current advisor is entirely focused on the products they are offering and not your financial goals in the long-term, maybe it’s time to look for another advisor.

The podcasts posted here before July 1, 2022 are historical in nature and were previously approved by Kalos Management, LLC. The views and statistics discussed in these shows are relevant to that time period and may not be relevant to current events. This is intended for informational and entertainment purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Investing involves risk, including the potential loss of principal. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. Our firm is not permitted to offer and no statement made during this show shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the US Government or any governmental agency. The information and opinions contained herein provided by the third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm.

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