Written by: George Shirley. Opinions are those of George Shirley and not necessarily those of RJFS or Raymond James
What is your top financial concern and what have you done about it? Two people who may fall into the same general category from a “profile” standpoint, can have very different feelings towards their personal financial situation and may answer these questions in very different ways. Early into my career, I observed that although people may be the same age or in a similar life-stage, the priorities, goals, and concerns they have are unique to them. While I may have prioritized the risks somewhat differently, in order to provide comprehensive planning, I need to understand what someone is most concerned about and why. So in regular meetings with clients I make it a point to ask, ”what is your top financial concern?” The answers I have heard have been so varied I have stopped trying to predict as I am consistently surprised by what I hear. And the answer often changes based on life happening.
Throughout this process, I have learned that in order for me to truly help someone feel comfortable with their financial situation, their top concern must be thoroughly understood and addressed. Regardless of how remote a possibility it may be of occurring, the concern is real and of paramount importance to them. While we often look at income or net worth as a measure of someone’s financial situation, I believe the level of financial wellness is more about protecting against outcomes that imperil the long term goals and objectives. Focusing on what someone considers to be most important, however unlikely, can provide the confidence that we seek for everyone we work with. It is knowing that your goals and objectives are aligned with your values and that you have protected yourself and your family the best you can that helps provide a tranquility that a portfolio optimized for risk adjusted performance may not.
Investing involves risk and you may incur a profit or loss regardless of the strategy selected.