Client Newsletter 2Q19
Client Newsletter 2nd Quarter 2019
It’s Time to Get Your Plan.
Dear Ambassador Family,
I asked someone recently, “what is your financial plan?” They answered: “To retire at 65!”
Friends, THIS IS NOT A FINANCIAL PLAN.
In my last quarterly letter, I talked about the value of having a written Financial Plan. I urge you to get a written financial plan in place and even more importantly, keep it up-to-date. Life is full of changes, and your plan should reflect them.
Informed and Engaged Investors Were Rewarded
Going into 2018, we believed the markets were due for some kind of correction. We communicated with you and took action.
During Q1 and Q4 the markets had major pullbacks, which created uncertainty and lots of emotion. We encouraged you to stick to a disciplined approach based on your long-term objectives.
Markets recovered in 1Q 2019. Congratulations to those of you who listened. You benefited.
Disciplined Investors Fared Well
2018 reminded me once again of a crucial lesson. Clients who had a written financial plan were able to focus on their future goals rather than short-term market fluctuations.
Those without a written financial plan quickly found themselves tempted to make poor emotional decisions.
Successful families also take advantage of our Menu of Services (see attached). You collaborate with us to review and adjust your financial plan annually. This is how we can invest more into your future. We help to mold a financial plan around your circumstances or life events. Thus, you can focus on the long-term goals most important to your family.
How You Can Prepare for Your Future
My goal is to be available for each of my clients to assist in designing your own personalized plan.
I TRULY CARE about Your Success.
For those of you who invested in your family and your future, we want to congratulate you on taking a big step towards financial freedom. We also encourage you to keep it up. I know it’s a lot of work. However, in the end, it will give you peace of mind and confidence.
For clients who have not started this process, I encourage you to work with us to develop a strategic plan that reflects your holistic financial picture. Talk to us about how we can get started.
Case Studies of How Clients Benefit from Our Help
Example 1: Holistic Planning Can Simplify Life’s Complexities and Give You Peace of Mind
Real estate can be a tricky investment. One of my clients, a widow, had struggled for years. She tried to figure out how to deal with all of her properties and various investment accounts. Her husband used to manage everything. Now she alone needed to make some big decisions. I sat down with my client. We reviewed her entire situation and made a list of issues that needed to be resolved. My goal was to create a plan of how to move forward while considering all the possible tax consequences. Together, we wrote out a plan to sell a few properties, renovate others, raise the rent on her remaining properties, and hire a reputable rental management company. This saved my client thousands of dollars in expenses and taxes, enabled her to pay off a majority of her outstanding debt, and produced income and savings for her future.
Example 2: Holistic Planning Can Help You Win with Social Security
Social Security is complicated. I watch so many of my clients struggle to understand their options. The Social Security office has been known to push people to take benefits early. In many cases, an early decision could cost you tens of thousands of dollars. My goal is to help you understand all the variables, possible penalties, and find the right timing to maximize your benefits. I advocate for each of my clients and insist that you consider all your options before making a decision. Together, we create a plan of attack before you set foot in the Social Security office. My clients are better equipped to make wiser decisions. Having your game plan ready gives you the best opportunity to maximize your Social Security benefits and understand the income you will earn in retirement.
Example 3: Holistic Planning Can Help You Save On Taxes
Maximizing taxes is often a big concern for my clients. A family that I work with owns both liquid and illiquid investments, including a family business. Unfortunately, they were faced with a hefty tax bill when they tried to transition. When they asked for my help, I took the initiative to see how they could defer this taxable event into the future. I collaborated with their attorney and CPA to come up with a plan. We restructured the transaction for their business to occur in multiple stages over a span of 5 years. This allowed them to stay in a lower tax bracket and save a significant amount over the next several years. Because I was able to see their entire financial picture and understand their goals (even outside of what my office manages), I was able to offer them more strategic and proactive advice.
Changes in Our Office
We originally brought Deanna onto our team to help around the office part-time. When Andrea left towards the beginning of 2018, Deanna was gracious to fill her role until we found a more permanent solution. As most of you know, she has stepped away from her position here.
Going forward, Chelsea and Debbie will be our client services and operations personnel.
You need to be working with your “My Wealth” portal on our website. The more you interact through your portal in between our meetings, the more current and proactive advice you can receive from us. Additionally, this is our primary means for communicating with you, updating your financial plan, and sharing quarterly newsletters and statements.
So, Let’s Get Started
We can develop a plan no matter how simple or complicated your life is. Your plan will center around your goals and needs. Once you have a plan, we will actively maintain it. Your plan will be a roadmap of where you are going and reflect your life circumstances as they change.
Not only do our most successful clients have a plan, but they meet regularly with us to review, make changes, stress test and fully understand how their money is working for them.
Don’t be shy. My staff and I are here to help you.