Provided By Katherine M. Carp, Financial Advisor
When we invest our hard earned, hard saved money we tend to be emotional. It may be impossible to make unbiased investment decisions when a person is overwhelmed by sentiment. I believe investing requires the use of a soulless barometer; a system that takes the emotion out of investing. Don’t take this comment as a justification for procrastination. Nothing, in my opinion, is gained by procrastinating–important fi nancial decisions need to be addressed in a timely fashion!
The right professional financial advisor could help provide clear, objective advice, bringing the focus away from emotion toward prudent guidance. Major life transitions add an inflow of emotions that can side track us from our financial goals. What constitutes a Major Life Transition? Marriage…divorce…loss of a loved one…retirement…– an emotional event in your life that brings you to a cross roads. It is my mission to help steer you towards your financial objectives.
Did you know that financial matters are the most common source of conflict among American Couples.¹ Unexpected expenses, mounting debt, problems stemming from inadequate savings, and the inability to prioritize needs versus wants are just a few of the financial issues that can put stress on a relationship. Do you know how your philosophy on saving and spending differs from that of your partner? Do you know if he or she has good or bad financial habits? Answering these questions now can help prevent stressful moments down the road, while establishing a budget will help you visualize the answers to some of these important questions.
Once a budget is implemented, it’s time to discuss and plan your financial future with a trusted financial advisor; one that can help you see passed the excitement of your marriage plans to objectively map your future finances. Where do you see yourself in 10, 20, or 30 years? Are children in your future? Do you have an emergency fund in place? Is it time to start saving for a down payment on a house? Have you already set up retirement accounts? I will take your hand and walk you through the process and help you put your investment goals in writing. You will determine your needs and establish your risk tolerance. I will provide the medium to meld your goals with forensic investing, thus eliminating subjectivity from the decision making process.
EMOTION TAKES AIM AT RETIREMENT
Today, we are faced with longer life expectancies and a continuous rise in the cost of living. One out of every four 65 year olds today will live past the age of 90.² This may create a fear of outliving retirement savings and a need to stretch retirement assets to cover a longer time frame. For some, it gives us a reason to put off planning for retirement because we don’t want to deal with the possibilities. Again, don’t use this as a reason to justify procrastination. Break through this paralyzing fear by discussing what you expect from retirement with your trusted financial advisor. Let your consultant replace your fear with serenity by prioritizing your goals, discarding notions that don’t serve you well and by utilizing all of the resources available. Now you may be able to maneuver through the investment maze and begin the process of planning for a retirement on your terms.
The emotions that well up in us as we experience major life transitions may be detrimental to the purpose behind an investment plan. Forensic investing may help strip away the emotions and looks at the facts. Do you have a source of forensic investing in the form of a trusted financial advisor? Value is one of the most critical components in selecting and maintaining a financial advisor. In other words, does the financial advisor add a competitive advantage? Do they meet your goals and objectives?
At Stifel, I begin developing a trusted relationship with my clients by creating a risk profi le for each individual to establish the critical parameters for goals, objectives, and risk tolerance. From this profile, I tailor a portfolio to conform to your unique set of circumstances.
One person cannot be the best at everything. To potentially succeed we need to build a quality team that includes you, me, and Stifel. You have an integral role to play in this team. Together, we have the power to plan and prepare a durable investment strategy.
Katherine Carp is a Financial Advisor with Stifel, Nicolaus & Company, Incorporated,
member SIPC and New York Stock Exchange, and can be contacted in
the Westlake, Ohio office at (440) 250-1630.
1 Per a survey from the American Institute of CPA’s
2 Per the Social Security Administration