Are All Your Eggs in One Basket?
By: Brandon Schleter, May 13, 2016
In recent years, there's been a shift in the financial planning and advisory business. A new client came into our office recently, and had a fairly standard financial picture. Retirement accounts had been set up, a few annuities had been added to the portfolio here and there, insurance policies had been purchased at different times, and the couple had basic wills in place from when their children were born 20-25 years ago.
This financial situation unfolded over the years with no rhythm or reason. In fits and starts this couple had added pieces to their financial puzzle when pressed to do so. Big life events led them to action.
This approach to financial planning is what I describe as the "bracket on" approach - add a policy here, fund a new account there, quick we are traveling to Cabo...we need wills! - without having a well thought out organizational approach behind it. This was the way peoples' financial planning (or lack thereof) was traditionally done - without one person to help with the overall process.
For me, this is an exciting time to be in the financial planning business, as the comprehensive financial planning we do for our clients truly is the future of our industry. We offer not only investment management, but insurance solutions, estate and business planning and budgeting all under one roof. We can bring in your tax and legal professionals to help with the execution of your financial plan. We help people establish a central thesis for what their financial story will look like.
One thing we hear over and over again is, "I'm scared of putting all my eggs in one basket." This has been drilled into people, and for good reasons - one only has to look at the history of basket tipping accidents resulting in broken eggs...or broken flavor-of-the day investments. The problem is this defensive posture can often lead people to take no action, or wait till forced to. We have found that neglect can be a major hazard for many people's finances.
The basic fact is that taking a comprehensive approach to financial planning is not the same as putting all your eggs in one basket.
Let me make a football analogy. Each and every player on your favorite pro team (I have to hear about some ocean bird team around the office all the time...) knows the ins and outs of the position he plays, and everyone is working toward the same goal - winning games. That team could hit the field and play a decent game without a coach standing on the sidelines.
The value of a good coach lies in their ability to look at the big picture, design plays and create an overall strategy that allows each individual player to make the best contribution he can to the team effort.
We're not going to put all your money in one investment, or try to push you into a "one size fits all" financial plan. We're going to sit down with you, look at all the different parts of your financial life, and develop a plan tailored to you that will help all those accounts and policies work together for you. Having one person to help guide you along the path of your financial life will help you keep your basket(s) from overturning.
Whether you need basic organizational help or a more complicated estate plan, our services will be based on your individual needs.
Give us a call today. We're always here to help.