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Ask Aaron: Are Annuities Bad?

March 4, 2019 Tags: , , P&S

When it comes to researching your investment options, you’ll find a plethora of choices and lots of chatter about what the “best” investment options are. Among this chatter, you’ll no doubt hear the amazing benefits of annuities as investments. You may be thinking: “are annuities a good investment for me?”

On the other side of the spectrum, you might have friends or family members who have had poor experiences with investments in annuities and are quick to tell anyone who will listen. Their stories aren’t unique, as sadly there are many investors who have been hurt by overzealous salespeople, disadvantageous contract terms or a lack of understanding of what is one of the most complex investment products available.

So which is it? Are annuities bad? Or are they all they’re cracked up to be?

Let’s take a deeper look…

What is an Annuity?

First things first, let’s look at what an annuity is. An annuity is an agreement between an insurance company and an investor that includes a stream of regular payments. However, all annuities are not created equal, and it’s imperative to make investment decisions with your eyes wide open before you ever sign on the dotted line.

Who Offers Annuities?

Annuities are investment contracts offered by insurance companies. Insurance companies are able to offer certain guarantees that other financial institutions might not be able to offer such as death benefits, income benefits, or crediting benefits, also called riders.

On the outside, this seems like an appealing proposition. But if you come across an agent who seems to pressure clients toward one type of product or company, you might want to steer clear. Someone with a certain product to sell may not have much more in mind than selling as many of those products as possible in order to earn a commission, even though those products may not truly be best for their clients.

Perks of Annuities as an Investment

There are certainly perks to annuities as investments. After all, they’re still a popular investment vehicle for long-term investing.

The biggest perks to investing in annuities are the accompanying tax deferral and other possible guarantees. Many annuities are paid out in consistent, recurring amounts, which is very appealing to individuals looking to set up a consistent stream of income or obtain some type of certainty.

Downsides of Annuities as an Investment

On the flip side, annuities are often not the best investment choice. While they may come with a guaranteed return and other appealing incentives, there are almost always strings attached.

Unseen internal costs or penalties and long surrender schedules can impact your bottom line significantly. Depending upon the specifics of an annuity contract, the payout might not end up as all it’s cracked up to be. And if you’re already committed to an annuity, removing your funds could prove challenging and expensive.

Some Important Things to Remember about Annuities

The most important thing to remember when it comes to annuities is that there is no single financial product that’s best for every investor. For some investors, certain annuities might be an ideal choice. For other investors, those same annuities might be a costly mistake.

And some annuities might be terrible investments, period – even for the most likely candidate. If it sounds too good to be true, it probably is.

Your individual financial situation is an essential driver behind which investments are the best for your portfolio. Instead of a sales pitch, you deserve a personalized recommendation based on an objective review of your specific situation.

At Puckett & Sturgill Financial Group, we take the time to get to know you personally before ever making recommendations for specific financial products. Are you curious about whether annuities are right for you? Reach out and schedule a consultation today!

    Disclaimer: Fixed and Variable annuities are suitable for long-term investing, such as retirement investing. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 1⁄2 are subject to a 10% IRS penalty tax and surrender charges may apply. Variable annuities are subject to market risk and may lose value. Riders are additional guarantee options that are available to an annuity or life insurance contract holder. While some riders are part of an existing contract, many others may carry additional fees, charges and restrictions, and the policy holder should review their contract carefully before purchasing. Guarantees are based on the claims paying ability of the issuing insurance company.

    Risky Business: Understanding Your Risk Tolerance and Why it Matters

    March 1, 2019 Tags: Jacob Sturgill

    An important aspect of planning your investment portfolio is balancing your risk and payout potential to help you work toward your ideal financial future.

    After all, you aren’t going to grow your wealth if you keep it hidden beneath your mattress in case of a rainy day, right? However, you don’t have to swing to the other extreme and rely exclusively on high-risk investments either.

    Finding a happy medium will make you more comfortable with your portfolio and should help you feel in control of your future financial prospects. The first step to achieving this balance is finding your personal risk tolerance level.

    So, what is risk? According to the Financial Industry Regulatory Authority (FINRA) “Risk is any uncertainty with respect to your investments that has the potential to negatively affect your financial welfare”. The uncertainty associated with future returns and the volatility of securities prices can cause investors to make emotionally-charged decisions and either sell too early or invest too conservatively (or too aggressively). Managing risk helps you stick to your investment plan and is key to good long-term investment results.

    What is Risk Tolerance?

    Investopedia defines risk tolerance as “the degree of variability in investment returns that an investor is willing to withstand”. Human beings are all risk tolerant to a certain degree, but everyone’s own level of risk tolerance varies. There are multiple factors that contribute to your personal level of risk tolerance, including:

    • What is time frame for achieving your investment goals?
    • How much have you already saved? Are you currently saving?
    • How much will you need to spend? How long do you need your funds to last?
    • Think about past experiences. (Here’s an easy test: If you find yourself constantly afraid of the next market crash, it may be the case that your balance of risky and less risky assets is not appropriate for you.)

    In general, we tend to shy away from risk. In fact, we’re likely to be more than twice as concerned about avoiding loss than we are about achieving potential gains. This is known as loss aversion in behavioral finance.

    Investing in the equity and bond markets is inherently risky. As an investor, you shouldn’t take more risk than you need to, are able to, or are comfortable with. Successful investing often means sticking with an investment plan that experiences both good times and bad times.

    Balance Your Portfolio

    Once you’re aware of your personal comfort zone and ideal level of risk tolerance, you are better prepared to build your portfolio. Sometimes, investors find that their portfolios are full of investments that are skewed toward more or less risk than they’re personally comfortable carrying.

    If you suspect that your portfolio is imbalanced, talk to your advisor about how you can make adjustments to align your portfolio with your risk tolerance level. Here are some of the ways you can stay on top of the level of risk your portfolio contains:

    • Analyze investment risk and return relationships
    • Diversify your investments
    • Stay on top of economic trends and developments that can impact investments

    Be Realistic

    As you consider your risk tolerance, you do need to continue to approach your financial plan with a measure of realism. There is some unavoidable amount of risk that’s necessary to growing your investments to achieve your future financial goals.

    If you have a particularly hard time coping with the requisite risk associated with building and managing your portfolio, talk to your financial advisor about how to find confidence and ways that you can minimize risks along the way. A trustworthy advisor should be able to guide you to the right investments for your lifestyle and can give you pointers on avoiding emotional investment decisions that could sidetrack your progress.

    To learn more about how personalized financial advice can help you find the right balance in your investment portfolio email or call Jacob Sturgill today.

      Important Disclosures:
      There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

      References:
      Investopedia on risk tolerance
      Finra.org on reality investment risk

      What to Expect After Your First Visit With Your Financial Advisor

      February 11, 2019 Tags: , , Jacob Sturgill
      Financial Planning - Puckett & Sturgill Financial Group

      The first meeting with your financial advisor is a starting point meant to clarify your values, current financial situation, and long-term goals. It should form the basis of a transparent, symbiotic relationship where the advisor helps develop a plan that links where you are today with where you anticipate wanting to be in the future and helps you make course corrections to keep you on track as things change along the way.

      It’s what happens after your first visit with your financial advisor that sets the course for your future investment strategy and goal setting. Here’s what you should expect to happen after that initial discovery meeting.

      Receive a Personalized Financial Recommendation

      After your discovery meeting, your financial advisor will synthesize the information you provided and work to develop a financial recommendation that makes sense for your lifestyle and goals. Likely, your advisor will identify a few possible investment routes for you to choose from.

      The information shared in your first meeting will give your advisor the inputs necessary to develop a personalized investment plan for you. Just because one investment style works well for other investors or you’re interested in a popular retirement plan doesn’t necessarily make it the right fit for your lifestyle and goals. Your financial advisor should be able to help you understand why certain investment options are better for you specifically.

      Choose a Financial Path and Make a Commitment

      After you receive your financial recommendation, you’re well on your way to the path that is best for your lifestyle and goals. And remember, your financial advisor should be able to assist you with decisions and implementation each step of the way. If you have questions or concerns, your advisor can point you toward answers that’ll make your decision process go more smoothly.

      When you’ve settled on a recommended plan, your advisor can give you the guidance you need to put that plan into action. This include working through initial steps to set up your portfolio, as well as putting checks in place to keep track of your progress.

      Keep in Touch with Your Financial Advisor

      Once you’ve chosen a financial plan to follow, you’ll continue to work closely with your advisor to stay up-to-date on your investments and make changes to your portfolio, when necessary. Even if you and your advisor agree on a plan at the outset, it may not be appropriate for you over time. And there’s nothing wrong with that; in fact, it’s to be expected that you’ll need to change course once or twice along the way.

      It’s important to stay in touch with your advisor through regular communication and maintenance meetings. This way you can stay on top of your portfolio and make updates as needed.

      If you’re looking for a personalized financial recommendation to inspire your financial future, contact Jacob Sturgill.

        What to Expect from Your First Meeting with Your Financial Advisor

        February 4, 2019 Tags: , , Jacob Sturgill

        So, you’re ready to meet with a financial advisor! You’re ready to sort out your finances and take positive steps to make solid financial decisions for your future. Whatever your goals, you know that working with a professional can help you progress toward them in a balanced way that aligns your values with your investment decisions.

        Maybe you’ve got a meeting on the books or you’re getting ready to pick up the phone and make that call to schedule one, but you wonder: what is this meeting going to be like?

        Read on to learn more about what you should expect from your first meeting with your financial advisor, as well as what you should bring along to that appointment.

        The Purpose of a Discovery Meeting

        Your first meeting – or discovery meeting – will lay the groundwork for your relationship with your financial advisor going forward. Of course, you are meeting with your advisor to get financial advice, but it’s important that you and your advisor are on the same page before they can offer that advice.

        After all, building an investment portfolio certainly isn’t a “one size fits all” approach. There’s no one formula that works well for all investors at all points in time.

        Your advisor needs to know who you are as a person (or couple, if you’re seeking counsel with your spouse), what your values are and how your finances play into your long-term personal goals. After all, you ideally want to use your finances to fuel something, whether that’s your retirement, estate or anything else.

        What You Should Bring to Your Discovery Meeting

        At your discovery meeting, your financial advisor will ask you specific questions about your money, both to learn where you are now and where you’d like to be. This may be a tough conversation, especially since money isn’t often a topic for everyday discussion.

        One of the most important things to bring to your discovery meeting is an open mind. Establishing a working relationship with your advisor requires transparency and openness in order for you to get the most out of your recommendations going forward.

        You also want to bring a summary of your finances and holdings in order to give your financial advisor something to work with. Of course, these don’t tell the whole story and you will want to bring along a summary – even just a verbal one – of your goals and ideals as well. Again, the purpose here is to give your financial advisor a big picture view of your situation specifically.

        What Your Financial Advisor Should Bring to Your Discovery Meeting

        Since the purpose of your discovery meeting is to establish a relationship with your financial advisor, you should expect your advisor to bring a few things to the table as well.

        Most importantly, your financial advisor should listen carefully throughout your conversation to gauge your goals and values, and to get to know you better. After all, you’ll be working together on important financial decisions going forward. It’s imperative that your financial advisor does their best to get to know you before stepping in to offer advice and recommendations.

        Additionally, your financial advisor will work with you determine how often you should meet after your initial meeting. Remember, you’re establishing a working relationship, not simply having an initial meeting just to get a folder full of recommendations.

        Are you ready to get a better understanding of your finances? Set up a discovery meeting today!

          Important Disclosures:

          Securities and advisory services offered through LPL Financial, a registered investment advisor, member FINRA/SIPC.

          Year End Checklist

          January 31, 2019 Tags: , , Jacob Sturgill
          Checklist - Puckett and Sturgill Financial Group

          Review Investments and Tax Time Strategy

          As you look ahead, you want to ensure that your investments and tax strategy are in order so that you can reap the benefits of your hard financial work over the past year. Changes made before the end of the year can impact your final numbers when it comes time to file your taxes, so pay close attention to the details as you work through each of your investments. Here are some practical steps you can take:

          Consider ways to offset capital gains

          Review potential tax loss harvest opportunities (assets that have declined in value during the year)

          Be mindful of wash sale penalties – wait for at least 31 days to buy back sold holdings for a loss
          Look for ways to offset capital gains elsewhere in your portfolio or ordinary income (up to $3,000 per year)

           

          Purchasing mutual fund shares in nonqualified accounts before year end may mean paying capital gains taxes on brand new investments
          Are you selling your primary residence? Remember the allowable exclusion of $500,000 ($250,000 not married) of the gain on home sale
          Remember that the 3.8% investment income surtax applies to the lesser of net investment income or the excess of modified adjusted gross income over $200,000 (individual) or $250,000 (married, filing jointly)
          Bear in mind that a 20% capital gains tax applies to individuals filing in the highest tax bracket

          Look for ways to defer or reduce income

          Make note of your projected marginal tax rate
          Look for ways to defer year-end payouts, including:

          Bonuses
          Capital gain property sales

           

          Boost W-2 withholdings if necessary
          Accelerate deductions
          Check for deductions from fully funded education savings accounts
          Use municipal bonds for federal and state (if applicable) tax-exempt income
          Look for ways to bunch itemized deductions

          Review Your Retirement Plan

          Your retirement strategy is an important part of your overall financial plan. And while you may not be looking to retire anytime soon, you want to make sure you avoid small problems that could turn into glaring issues later on down the road. Tweak investments that don’t quite work for you and ask your financial advisor which opportunities are right for your portfolio. With careful attention to your retirement plan, you can look forward to your best financial future.

          Review your IRA(s):

          Maximize contributions to eligible accounts
          Increase retirement contributions, if possible

           

          If you fall into a low income tax bracket, consider converting from Traditional to Roth IRA

          This can be a good option for when you have a low income year but anticipate a higher income in future years
          Main benefit: future growth from Roth will likely be distributed tax-free

           

          Learn more about collecting Social Security benefits
          Review Net Unrealized Appreciation (NUA) opportunities for employer stock options
          If you are 50 or older:

          Look into catch up contributions for IRA and certain retirement plans
          Avoid IRA/retirement plan distributions prior to age 59 ½ to avoid a possible 10% early withdrawal tax penalty

           

          If you are 70 ½ or older, take your RMD
          Do you have a new job? A plan participant leaving an employer typically has four options (and may engage in a combination of these options), each choice offering advantages and disadvantages.

          Leave the money in his/her former employer’s plan, if permitted;
          Roll over the assets to his/her new employer’s plan, if one is available and rollovers are permitted;
          Roll over to an IRA; or
          Cash out the account value

          Employ a Financial Gifting Strategy

          The holidays and other celebrations often signal open hearts and open wallets, especially in terms of financial gifts. Whether you’re gifting to family members as a holiday treat or as a wedding surprise, you can take advantage of these gifts when it comes time to plan your tax strategy. And if you donate to charity, you may be eligible for even greater savings. Don’t let another holiday season escape without learning the best ways to strategize your financial gifting.

          Gifting to family

          Gifts under $15,000/individual are federal tax-free
          Put will and trust items in order to take advantage of both estate and income tax deductions
          Invest in 529 accounts – up to $70,000 at one time

          Gifting to others (including charitable donations)

          Cash gifts to charity automatically qualify as income tax deductions
          Consider gifting stock to qualifying charities
          If you’re older than 70 ½ , take note of your Required Minimum Distribution (RMD) and plan charitable giving accordingly; you may be eligible to donate up to $100,000 and qualify for favorable tax deductions
          Look into establishing a Donor Advised Fund (DAF) or private foundation for a cause you care about and receive further advantages:

          Immediate tax deductions
          Establish a framework for donor gifting over time

           

          Consider bunching other charitable donations through the following vehicles:

          Charitable Remainder Annuity Trust (CRAT)
          Charitable Remainder Trust (CRUT)
          Charitable Lead Trust (CLT)

          Check in with Your Estate

          Estate planning is an essential part of planning for your financial future. Whether you’ve got a game plan in place or want to get started with setting things in order, use the end of year review to assess your estate. You’ll also want to take time to account for any life changes that may impact your estate.

          Double check your beneficiary designations and update them if necessary
          Check trust funding
          Review trustee and agent appointments
          Evaluate provisions of powers of attorney and healthcare directives
          Ensure that you fully understand all documentation

          Wrap it up and Look Ahead

          Periodic financial checkups – including your year-end review – keep you in control of your finances and leave the guesswork out of managing your financial goals. As you look through your investments, retirement plans and gifting strategies, you can evaluate what needs tweaking and set yourself up to take advantage of new opportunities. Sit down with your financial advisor to take a full-picture view at your portfolio and make sure you have solid understanding of your financial position moving forward.

          Send the following investment and capital gains information to your accountant to receive an accurate year-end tax assessment:

          Income types you had during the year: salary, interest, dividends, short- and long-term investment gains, Social Security income, IRA withdrawals
          Your Medicare tax responsibility (if applicable)
          Plan for estimated taxes

           

          Evaluate your HSA contributions and other healthcare expenses
          Confirm FSA expenditures for the year
          Check your credit reports, taking particular note of any suspicious activity

          Federal law entitles you to free credit reports from nationwide reporting companies (Equifax, Experian, TransUnion) every 12 months at your request

           

          Review 529 contribution amounts
          Discuss major life events with your advisor, including:

          Family changes (marriage, birth, death)
          Job and income changes
          Significant one-time purchases
          Retirement or plans to retire
          Concentrated positions you need to address

           

          Check that your objectives, risk tolerance and preferences are in order

          Sit down with financial advisor Jacob Sturgill to ensure you have a solid understanding of your financial position

            Important Disclosures:

            The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
            This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

            Traditional IRA account owners should consider the tax ramifications, age and income restrictions in regards to executing a conversion from a Traditional IRA to a Roth IRA. The converted amount is generally subject to income taxation.

            The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change.

            LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.

            Portfolio on Purpose

            January 25, 2019 Tags: , , Jacob Sturgill
            Behavior Gap Illustration - Puckett & Sturgill Financial Group

            When you look at your investment portfolio, do you know why you own what you own?

            • Does it look like the picture on the left, an eclectic mix of things accumulated over the years?
              OR
            • Does it resemble the picture on the right, with each piece intentional, organized, structured, well thought out?

             

            If you’re like many people, your portfolio looks more like a collection – it has a little bit of everything in it. These bits and pieces might include inheritance, something you invested in after read about it (or saw it on TV, heard a tidbit from co worker), last years hot performer, and so forth.

            In a purposefully designed portfolio, each piece of your portfolio should work together. The goal is not to beat “the market” (after all, what is the market anyway?), but for each piece to work in unison to achieve your goals.

            Because your investments will eventually be used for something, you may believe the logical thing to do is start with viewing your investments in isolation. But you run the risk of hurting yourself in the long run.

            Instead of viewing your investments myopically, it’s important to see the whole picture. You want to look at your investments as a means to an end, rather than the end in and of themselves.

            Sounds easy enough.. How do we do it? First, start with end in mind.

            DO: Prioritize Your Ideal Financial Future (Clarify Goals)

            • Give yourself permission to take your best guess at your financial goals. For example, your favorite artist, movie, etc has likely changed throughout your life. Your idea today of your financial future may be different than what you ultimately end up prioritizing.
            • If you start with a desired end point, it becomes easy to work backward to figure out what you need to do for your financial portfolio today.
            • This can be very challenging. How do you know what is important to you? “They” say the checkbook and the calendar never lie. Start with your daily reality today and work from there.

            DO: Develop a Plan

            • Set realistic expectations for your portfolio performance.
              • How much do you think you will need?
              • How much can you reasonably save?
              • When do you need your money? (i.e. what is your time-frame?)
              • What rate of return do you need?
            • While market performance is important, market performance should not be the ultimate goal – achieving your desired financial state should be.

            DO: Find the Investments that Fit Your Plan

            • Revisit your portfolio periodically (at least annually) and make smaller changes to it over time.
            • If you know where you are going, it’s easier to know what it is going to take to get there. Think of going on a road trip; you know you’ll need to gas up at some point – but you probably don’t know which exit you’ll actually need to stop at!

            Choose a Financial Advisor Who can Help

            We are all human. Life happens. Things change.

            There are always going to be things that seem like better options or bigger risks in the market. Sometimes it seems like one of these factors could jeopardize everything and you may be tempted to make changes.

            Blind spots are, by their very definition, things we cannot see. A trusted advisor, like Jocob Sturgill, can help you clearly define your goals, set realistic expectations, sidestep common investment mistakes, and build intentional investment portfolios.

            Contact Jacob Sturgill

              Important Disclosures:

              The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

              Investing involves risk including loss of principal.

              Managing Wealth by Managing Emotions

              January 24, 2019 Tags: , , Jacob Sturgill
              Dollar Bills - Puckett and Sturgill Financial Group

              How do your finances make you feel?

              Do you feel anxious about growing or sustaining your retirement funds?

              Hopeful for the impact your legacy will leave?

              Concerned with market fluctuations you see covered in the evening news?

              When it comes to managing your wealth, it can be complicated to separate your emotions from your investments. But could your emotions be feeding into the less-than-stellar performance you fear?

              Likely, yes.

              However, there are ways to strive to get the most out of your financial activity.

              Understand and Identify Emotional Investing Behavior

              Before you can reverse the trend of emotional investing behavior, it’s important first to understand what the behavior looks like. You won’t be able to successfully overcome your emotions until you can identify the things that trigger emotional responses.

              What should investors do in the following scenario:
              a. Buy low, sell high (and make a profit)
              b. Buy high, sell low (and lose money)

              The answer here, as we all know, is “a”. However, market trends play heavily into investor emotionality and real life is not so simple. After all, it can be difficult to tune out the barrage of financial information you receive each day.

              Everyone wants to avoid major investment losses and own the next hot company with an amazing product that has been all over the news.

              When it comes to exciting investment opportunities, should investors:
              a. Research the company (mutual fund, ETF, etc) and potentially invest?
              b. Ignore the news, stick to their long term plans, and invest as before?

              The answer to the second question is not as easy. Although “a” might feel more natural because of the positivity, you know that “b” is probably the right answer even though it might not feel as good. This is why you see articles with titles such as “10 Funds to Own Next Year”, “Where to Invest Now”, or “All Signs Point to Bear Market”.
              Whether you see something on the news, read a blog post about downturn in the tech sector, or are exposed to negative opinions on certain financial ideas in a Facebook group that you participate in, it can be hard to get through a day without something shaking your confidence in your financial future.

              Being impacted by this information isn’t necessarily a bad thing. It’s what you do as a result of receiving new – and often conflicting – information that matters.

              Don’t Follow Emotional Investment Trends

              It can be hard to resist the knee-jerk reaction to receiving information that makes you question your investment decisions. And this is a pattern that’s surprisingly prevalent throughout the larger history of human financial behavior.

              Think of events like the Great Depression, Black Monday and the recent financial crisis of 2008. Each of these events has something major in common: investors reacted with fear to significant financial news and pulled their money out of investments that they thought might cause them future harm.

              When markets are bad, people may be anxious to rid themselves of their investments and may sell as quickly as they possibly can. Of course, when everyone is trying to sell, the market becomes saturated and prices decline, sometimes excessively – think back to returns during the aforementioned periods.

              Conversely, when things are going well, people may become confident and may want to invest more money. This is a self-fulfilling prophecy that causes prices to rise. Purchasing when things look good and prices have risen is the very definition of “buying high”.

              Manage Your Investments by Seeking the Right Counsel

              Despite what we may see on the surface, investing, at times, is not natural. This matters because if we do not understand investing, we can lose our money.

              So how can you avoid emotionality in investing?

              First, understand that investing is about more than missing a hypothetical gain or avoiding a hypothetical loss. Investing should be about designing a plan to reaching our goals, finding the right investments for the plan, and making adjustments along the way.

              A CERTIFIED FINANCIAL PLANNER ™ practitioner can help ease your fears as you consider your investments and will help you decide which options are the best for your present status, as well as your future. Even if you have a hard time taking a step back to view your financial factors objectively, your financial advisor can help you see through them with clarity.

              Certified Financial Planner, Jacob Sturgill, can help you look at the markets objectively

                IMPORTANT DISCLOSURES

                The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.

                Goals and the Plan to Reach Them

                January 17, 2019 Tags: , , Jacob Sturgill
                Financial Planning - Puckett and Sturgill Financial Group

                “Would you tell me, please, which way I ought to go from here?”
                “That depends a good deal on where you want to get to,” said the Cat.
                “I don’t much care where–” said Alice.
                “Then it doesn’t matter which way you go,” said the Cat.
                “–so long as I get SOMEWHERE,” Alice added as an explanation.
                “Oh, you’re sure to do that,” said the Cat, “if you only walk long enough.”*

                When it comes to your financial picture and long-term goals, do you find yourself wondering as Alice did in Lewis Carroll’s “Alice’s Adventures in Wonderland”?

                If you are like most people, you probably have a number of financial goals but no real plan to achieve them. What should you do when your objectives compete? Where do you turn for answers? Perhaps you’ve turned to friends, the internet, or popular voices in finance for answers, but you’re still not sure you’re on the right path.

                A CERTIFIED FINANCIAL PLANNER ™ practitioner can help you connect your investments to what is most important to you and in the end, can help you make better financial decisions. Here’s how:

                Your Financial Advisor Should Ask the Right Questions

                Money is an emotional topic and talking or even thinking about it can be hard. Very hard.

                In order for your financial advisor to help you make informed decisions with your money, you will need to share important personal information about yourself and your family. This conversation also requires a transparent assessment of your current financial situation. Moving beyond your assets and liabilities, your advisor should clarify what it is that you want to accomplish both personally and professionally as well as who and what is important to you, what you would like to accomplish as well as when you would like to accomplish it.

                Modern financial planning is a continuous and evolving process; it isn’t about one-off transactions or products as it might’ve once been or is sometimes perceived to be but is about a relationship with a professional advisor that will help you get from where you are to where you would like to be.

                Your Financial Advisor Should Customize a Plan that’s Uniquely Yours

                After the gathering information stage, your financial advisor should have a clearer picture of your unique situation and work with a team of experienced and trusted professionals such as CPAs and attorneys to develop a comprehensive plan that addresses your objectives.

                In this way, your financial advisor works like an architect to design a financial home that suits your current needs as well as your plans for future self.

                But it takes a clear understanding of investment options as well as an understanding of each clients’ individual financial situation before jumping into the investment deep end. One size certainly does not fit all when it comes to investing.

                Like a scientist, your financial advisor will put the “things” under a microscope and analyze each factor critically before developing a plan to move forward. Just because something looks good on paper or is recommended by a popular finance blog doesn’t mean it’ll work for you.

                Your financial advisor knows this and will spend time experimenting with potential combinations before delivering a cohesive financial recommendation for your future.

                Before you decide to implement any part of an investment plan, you want to find an advisor whose set of investment beliefs, methods, philosophies, and thoughts on markets resonates with you.

                Your Financial Advisor Should Offer Ongoing Advice and Recommendations

                Once your advisor has a designed a personalized financial plan for you, it’s time to get to work.
                After all, your financial advisor is there to do just that: advise.

                From an early age, we are taught that the quickest way to get from point A (where you are today) to point B (where you want to be in the future) is a straight line. In some sense, your initial plan shares the element of a straight line. However, life, like the markets, rarely moves in a linear fashion. This means that at some point your initial plan will need to be changed and you should both know and be OK with that. We won’t know the cause – the who, what, when, where, or how – but as Heraclitus once said: “change is the only constant”.

                What you should have with your financial advisor by now is a relationship. Relationships take time to build and are built on trust. Like any relationship, they are built on honest, regular communication and from time to time, a little work.

                How does your financial advisor check out? Does he or she understand your goals and lifestyle, analyze the components critically and offer a custom financial plan for your future?

                If not, don’t you deserve a financial advisor who can do these things for you? After all, it’s your money and your financial goals on the line.

                Start setting your long term goals with the advice of Certified Financial Planner, Jacob Sturgill

                  *Carroll, Lewis, 1832-1898. (2000). Alice’s Adventures in Wonderland. Peterborough, Ont. :Broadview Press