What Are You Going to Do With My Money?

So, picture this. A couple comes into the office for the first time to meet our team and learn about the possibility of working together. Let’s say the wife was referred to us from her friend, and she is excited to learn more. Very personable and chatty if you will. The husband joins reluctantly. He knows they need help, but there’s some pride stuff going on. Maybe there is unfamiliarity, as well as the possibility of loss of control. Understood. With arms folded, leaning back in the chair, the husband says, “so where are you going to put my money”? My answer to him… I have no idea. He says, “what do you mean you have no idea. Isn’t that what you do”? I say, “Yes, investing is part of what we do, but I just met you ten minutes ago. How could I possibly know where to put your money? I need to learn much more about you and what your needs are and how it fits into your plan before I could ever tell you where we should put your money”.

A few thoughts on this. First, we fully appreciate that developing a relationship with a wealth management firm can seem overwhelming. At the center of the whole thing is trust and sharing in some of the most important things in your life. Second, culturally, we are almost trained to think that how our money is invested is all there is. Everything else stems from there. This includes how we have educated folks in general, as well as much of our industry. Personally, we believe your money and how it is invested should go into the plan we build for you, and not the other way around. We know the world of wealth management is complex. We know your money must grow and get the returns needed to help you achieve your objectives. That’s where we start. However, we think that the other things such as legacy planning, how we emotionally think about money, risk tolerance, etc. are just as important, and that the two joined together are mandatory in our planning.

By the way, regarding the man in the meeting, we totally understand. Life can be complicated sometimes, and our job is to help not make it that way. It always seems to go back to trust.

Investing involves risk. No investment strategy can guarantee positive results. Loss, including loss of principal, may occur. Material discussed is meant to provide general information and it is not to be construed as specific investment, tax or legal advice. Keep in mind that current and historical facts may not be indicative of future results. Diversification is an investment strategy that can help manage risk within a portfolio, but it does not guarantee profits or protect against loss in declining markets.

This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. (C) Twenty Over Ten