It’s Sunday afternoon and the 17th of July. I can’t believe that I’m taking Sophia to her new school tomorrow for some “get acquainted” time before the start of her next year. Where does the summer go? I ordered a pizza and started thinking about BASIS (name of her new school).
Basis is important to investing too. Let’s look at what having a solid one means to your financial future.
Susan R. Linkous
“Susan On Money”
Getting the Foundation Right
When it comes to pizza, I’m very picky about the crust. It doesn’t matter what’s on it if the bottom falls out. Your financial future is built on a basis as well and it better reflect what you like, want, and need. After many years in this profession, I can tell you that all kinds of clients come through the door frustrated because they got “thin” when they wanted “deep dish”.
Here are my thoughts on why this happens and how you can prevent it:
a) Investment management should begin with a clear objective. Are you really a growth investor or is income important too? Make sure your advisor understands. Make sure you are clear about what you want.
b) Would you order a pizza a year or two in advance? If your Investment Policy Statement has not been reviewed recently, you may have done just that.
c) There are no dumb questions. If you don’t know what the sausage is made from, ask. It’s no fun finding out after the heartburn. Even the best educated investors can minsunderstand the nuances and terms of the financial planning and investment management communities.
d) Avoid group presentations. Unless you want to be served what everyone else is too, be aware of the pitfalls of seminars, workshops and group financial presentations. It’s unlikely your needs are like all the others and, by design, they will most always be trying to steer you one way with little or no regard for your individual tastes.
Until next week,
Quotes & Books
“Plans are nothing; planning is everything.” ~Dwight D. Eisenhower
“Be not afraid of growing slowly, be afraid only of standing still.” ~Chinese Proverb
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