Tips from Reilly Financial Advisors
The Ten Principals of Successful Financial Planning ---
It’s a financial minefield out there. For example ---
- The Process is the Point! - Financial Planning is a process that takes place over a lifetime. Every aspect is subject to change. But, the more you anticipate and account for that fact, the better your chance of success.
- One Size Never Fits All! – Anyone who suggests that one financial philosophy, product, or solution is correct for every need or situation is either inexperienced, or unscrupulous, or working solely on commission.
- The Correct Answer is – It Depends! – Whether the topic is Microsoft or margin calls, the suitability of any financial product, practice or procedure depends on a careful consideration of your individual circumstances and attitudes.
- The Context is the Key! – Every significant financial decision should be made within the context of a carefully considered financial strategy. The more carefully that strategy is crafted, and the more disciplined its implementation, the better each, individual decision is likely to be.
- Financial Service or Financial Sales! – Much of the financial industry is driven by a need to generate new sales year after year. Their need to sell products too often supersedes your need to buy them, and service can be an eloquent, but insincere, after thought. Paying an agreed upon fee for real service is better than paying a hidden charge for questionable products.
- The Basic Proposition – It’s Your Money! – When it comes to your money, no matter what you are told, read or hear, if it doesn’t feel right, don’t do it! No one will repay you out of their own pocket for losses you incur based on their advice.
- The First Question! – When considering any financial presentation, product, service, or offer, your first question should always be, “How do you get paid?” Do not proceed until you know that you know the answer to that question.
- The Biggest Mistake! - The relentless attempt to “beat the street” has doomed more investors to frustration and failure than any other single consideration. Establish goals, develop a strategy, adjust to change, and manage your resources responsibly. It’s not a game, it’s your life!
- The Cocktail Party Syndrome! – It isn’t about bragging right! No matter how well you do, you’re unlikely to encounter anyone who will admit you’ve out performed them. Don’t worry about it! Stick to your plan and be satisfied with your success.
- A Good Strategy is Critical, but Execution Determines Success! – Anyone who has ever served in the military knows that Operations Orders are huge, detailed, and obsolete the moment the first shoot is fired. But, they provide an invaluable base from which to adjust as circumstances change, which they will. Plan carefully!
Understanding the context within which individual financial decisions are made is the key to making better financial decisions --- We help our clients develop and act on that understanding!
Please contact David Holt, RFA Associate Financial Advisor, at David@rfadvisors.com, or by calling 619-698-0794
For more information on these, or other, subjects of importance to you.