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Financial Well-being

January 1, 2011 – The Day the Baby Boomers Turned 65

Starting in 2011, and for the next 19 years, at least 10,000 baby boomers will turn 65 every day. Pretty stunning when you consider:

  • 42% of Americans determine their retirement savings needs by guessing.
  • 31% of Americans believe they need less than $250,000 to retire comfortably.
  • 20% of workers now intend to retire later than they originally planned to, even though 45% of current retirees retired earlier than expected, primarily due to health or disabilities.
  • 35% of Americans over the age of 65 rely entirely on Social Security to live.
  • 50% of current retirees are either not too, or not at all, confident that Social Security will continue to provide the same level of benefits that they themselves currently receive.
  • 72% of workers are either not too, or not at all, confident that Social Security will continue to provide the same level of benefits that today’s retirees receive.

The current situation can only be described as a monumental failure to prepare for the future. No wonder about half of our clients are focused on their financial well-being.

Some of our clients come to us with a reluctance to admit that they are concerned,
or perhaps even afraid, about their financial future.

And that’s perfectly understandable.

We see it every day, in questions like:

  • The ups and downs of the stock market don’t make sense to me. It’s stressful, and I’ve lost sleep because of it. How do I find the peace of mind that will allow me to sleep well every night?
  • My advisor’s performance has been ok, but I’m frustrated with the lack of communication and attention I’m receiving from him/her. How can I work with a partner that is concerned first and foremost with my well-being, and will communicate with me how and when I want?
  • I’ve been managing my family’s investments, and while I’ve had good years, despite my best intentions, I’ve also made some mistakes. I’m tired of having to do it, and would rather spend the time doing other things. How can I free up my time to do other things and help me accomplish my goals, without feeling like I’m giving up control of my assets?
  • I believe education is critical to my child(ren)’s success, but worry that I won’t be able to send them to college without saddling them with a lot of debt. How can I support their education without sacrificing my own financial well-being?
  • I‘m a business owner, and recognize that selling my business is the best, and perhaps only, opportunity I’ll have to create financial security. But I’m apprehensive about selling it, because it means moving from a situation in which my financial well-being is based on something I’m intimately familiar with and have a high degree of control over, to a situation in which my financial well-being is entirely dependent on an investment portfolio, something that is unfamiliar to me, and outside of my control. How can I not only maximize the after-tax value of my business, but do so while making this emotional transition?
  • My family has special needs. How can we overcome the anxiety that arises from simultaneously wanting to secure our own financial future, and the need to satisfy the sometimes overwhelming financial needs our family member requires?
  • I am a physician, and am concerned about what the changes in my industry mean for my ability to accomplish my financial, and therefore, life, goals. How can I develop and implement a plan despite a complex and highly dynamic environment?

Answers to these questions and the accomplishment of these goals come from one source.

The application of a disciplined decision making process.

Sounds simple, huh? But consider that there are two critical areas in which decisions must be made: the planning process, and the investment process, each of which attempt to accomplish goals that may be decades into the future. Without a disciplined approach in both, an investor’s probability of achieving their goals is entirely dependent upon luck.

How lucky do you feel?

If you’re not willing to risk your future on luck, we encourage you to review the following sections to learn about how a disciplined decision making process can make luck unnecessary.

  • A Structured Planning Process – How do you plan for the future when the future is not only unknown, but unknowable? Pretty daunting task, huh? One might even call it insurmountable, so why even bother? Because even though the future is unknowable, planning for it only appears to be insurmountable.
  • A Fundamental, Disciplined Investment Process – All the planning in the world won’t amount to a hill of beans if the implementation of that plan fails. The investment management of a client’s assets is the implementation. Where the rubber meets the road, so to speak. In order for investors to achieve the rate of return that is required to meet their goals, they must employ a disciplined process that is first and foremost tailored to their own unique situation, and is well-grounded with a proven track record of success. Then it must be structured and utilized in a way that makes it a repeatable process for each individual client, so that it doesn’t just work once or twice, it works for them continuously throughout their lives.

If you want to learn more about the importance of a disciplined decision making process, find yourself asking any of the above questions, or have your own questions and would like answers, we encourage you to contact us only to answer your questions, not to sell you our services.

If you’d like to learn more about the importance of selecting a financial professional and partner that can help you plan for your financial well-being, we encourage you to review the following resources:

Selecting a Financial Advisor