Investing, taxes, insurance, etc. are complex topics, but your overall financial plan and portfolio management don't need to be. I strongly believe in keeping everything as simple as practical. What do I mean by that exactly?
You don't need a complicated portfolio filled with investments you don't understand in order to meet your financial goals. The top 3 indicators of long-term portfolio success are:
- Appropriate Asset Allocation - Owning the correct securities for your objectives and risk tolerance
- Low Fees - The amount you are paying for your investments
- Tax Efficiency - Making maximum use of tax-advantaged accounts and tax-smart investment strategies to make sure you are keeping as much of your money as possible
I focus my investment strategy on those 3 items for the success of my clients.
Instead of reacting to the IRS every year when it is time to file the tax return, we will plan ahead to ensure maximum use of all of the benefits built into the Internal Revenue Code. Taxes are complex, but I understand them well, and can help you understand how to pay less in taxes.
Insurance is all about risk mitigation. It is about protecting your financial plan from unforeseen and potentially catastrophic events. Many insurance products are now hybrids - they mix risk mitigation with an investment product. These types of insurance products are a good value to a very small segment of Americans. For most people it makes more sense to keep it simple and use insurance as insurance and not mix your insurance with your investments.
Simplicity is one of the keys to financial success. If we develop a course of action for you that you don't understand, how will you follow it? If simple, practical advice interests you, please contact me for a free consultation.