Having a plan in place is the backbone of financial planning. Without it how do you make decisions? How do you know you aren’t paying more taxes than you have to? How do you know you are financially able to retire now?
These plans are vital for navigating your financial future, but the reality is the plan in place will need to be altered from impactful life events or market conditions. How you respond to these events and conditions is key.
Sometimes it is hard to even put a plan in place or follow it as so many uncertainties surround your life and the world around us. But, without a plan how can you be sure you are responding to these changes and adapt if you don’t have a plan in the first place.
As financial advisors, our job is to guide you through these times. They are the times where you are most likely to make a big mistake and having a co-pilot there to help you handle those financial uncertainties is pivotal to carrying out a successful plan.
We have found that he best course of action when assumptions/speculations are made, is to refer back to your own personal financial plan and specifically the items that you can control to shape your financial future.
In saying this; we of course can’t tune out all outside forces and have to take them into consideration when making investment recommendations for our client’s portfolios. Therefore this is incorporated in our disciplined strategy derived from our market outlook meetings. We focus on four major areas to include valuation, sentiment, technical and business cycle.
This process helps us to make objective, but informed decisions when it comes to our clients’ portfolio structure and deters us from making changes to our strategy based on a specific event. This is where having a financial advisor as your co-pilot can really prevent you from making a knee-jerk reaction that can permanently cripple your investment portfolio.
The irreducible uncertainty will always be there as political administrations change, bull and bear markets come & go, interest rates change, inflation adjusts, tax code revisions occur amongst many other factors that surround us.
A financial plan…don’t get caught without one.
*This article was originally posted here.
Cameron Hendricks is a CERTIFIED FINANCIAL PLANNER™ practitioner at Financial Symmetry, Inc located in Raleigh, NC. He enjoys developing relationships with new and existing clients and playing a key role in helping them reach their financial goals.
Contact Cameron: 919-851-8200 [email protected]
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