The world of wealth management has many tools at our disposal to help clients pursue their financial goals. Investment portfolios containing equities are often combined with bonds, mutual funds, CDs, and other more stable components that aren’t as sensitive to stock market volatility. Fixed-income, exchange-traded funds, life insurance, and even real estate are levers financial advisors can pull to balance your need for liquidityand desire for growth against your comfort level with risk.
However, sound financial management is not done by miscellaneously using available products. Just because they exist does not mean they are right for you. Individual products must come second to a thoughtful, comprehensivefinancial strategy that increases the likelihood of reaching your goals.
At Anderman Wealth Partners, our meetings with prospective clients are designed to gauge a mutual fit. We are honored to serve as financial advisors for individuals and families who share a similar philosophical approach to wealth management.
Below are 6 money mindsets thatour best clients share:
You believe a well-designed strategy should drive your financial plan. Financial advisors should not be throwing metaphorical darts to see which products "stick." The goal is not to generate the greatest possible returns whileignoring the potential consequences of penalties, fees, and taxes. The process of financial planning should present financial solutions that fit your unique goals and circumstances, and an advisor should provide the ‘fine print’ and experience to help you make informed decisions.
You want an advisor you can trust to put your best interests first.Industry-wide regulation was designed to weed out advisors who put their profits ahead of client needs, but every industry has ‘bad apples.’It isappropriate to use discretion when choosing a financial partner—not simply to avoid those who prioritize their pay-out over performance but also to eliminate those who cut corners or take the easy way out. Short-sighted actions of inadequate advisors could end up costing youin the long run.
You desire monitoring and maintenance on your accounts. Financial planning is not a ‘set it and forget it’ sort of task. As your life changes, so should your plan. Even your investment portfolio requires regular reviews and rebalancing to ensure asset allocations remainappropriate, and you deserve updates on performance throughout the yea
You’re committed to remaining patient through market ups and downs. Some of the best days for market returns immediately follow low periods. As evidenced by the market reaching all-time highs this month after a year of sizable volatility, the short-term impacts on your portfolio are not nearly as important as remaining invested over the long term to maximize potential growth. It takes patience and restraint to avoid knee-jerk reactions when headlines rattle the market, but history has shown markets typically recover from downturns in time.
You live within your means. In general, if your income exceeds your expenses and you have cash reserves ready for emergencies, you’ve illustrated that you understand the importance of responsible financial management. Even if you haven’t reached your savings goals or hope to be more disciplined on spending, this mindset shows you have the self-control required to adhere to your financial plan.
You understand the necessity of saving for the future.Fully funding your retirement plans highlights that you’re willing to take steps today to prepare for tomorrow. This mindset of being comfortable with delayed gratification will serve you well in many areas of life—but particularly when implementing a lifelong financial plan. It shows you’re willing to prioritize what you want most over what you want now.
If these philosophies match how you think about your money, you and Anderman Wealth Partners might be a great pair!