I sat down with a potential client the other day and she asked
me a question that I don’t hear very often. But it’s a fair
question:
”
Jeff, you’re recommending that I place my nest-egg money into
these particular areas. Do you do this with your own money?
”
I sat down with a potential client the other day and she asked me a question that I don’t hear very often. But it’s a fair question: “Jeff, you’re recommending that I place my nest-egg money into these particular areas. Do you do this with your own money?”
My first thought was, “Gee, I wonder if Michael Jordan actually wears Nike shoes and eats at McDonald’s.” It would be interesting to see Michael at Burger King sporting a pair of Reeboks.
My answer is this: If my investment objectives are the same as yours and I am liquid to invest, then yes, my money is invested in what I recommend. If you are over 60 years old and either retired or close to it, then no, I probably do not invest like you; your investment plan with me would most likely appear something like that of my parents. If you have newborn children or grandchildren, then that particular investment plan with me would look different than mine for my kids. That’s because my kids are 10 and 13 years old.
You see, recommended investment plans are related to the objectives of each investor. Would a doctor prescribe insulin to an epileptic? Would a golfer putt with a sand wedge? Does Perry Mason put his client on the witness stand?
So what is the recommended financial investment arena for you? If you read the investment textbooks, you’ll find textbook answers to your questions. If you call the weekend financial talk radio show, you’ll find quick talk-show answers to your dilemma. I believe that you’ll find accurate and useful information in many of these and other medium. But most important is that these same objective solutions do not take into account many of the poignant, personal details of your life.
For example, what major cash inflows and outlays will you have over the next 10 to 15 years? What do you expect that your Social Security income will be/is now? Do you pay taxes on your Social Security? In case of death, which of your Social Security incomes will be eliminated? Do you plan on staying in your current home after you retire? Are you familiar with the 529-college savings plan for your children/grandchildren? In case I need other answers, do I have your permission to contact your accountant/attorney? And much, much more.
Don’t buy an Edsel if you want a Corvette. Don’t give your grandson a plastic Wiffle ball bat for Little League. Don’t buy your granddaughter tap shoes for ballet. And, for goodness sake, do not slap on sunscreen in the rain.
Jeff Welch helps individuals and small businesses with their long-term financial planning. He is a registered representative of and securities are offered through Financial Network Investment Corporation, member SIPC. His office is located at 339 Seventh Street. Phone 630-1525.
