Be Goals Based

Peter Katevatis - Aug 03, 2017
Modern Portfolio Theory has been around for over 60 years and is the foundation of our industry.  It is about generating a solid long term return and is often reported in relation to a benchmark.  As an investment advisor for many years I have notice

Modern Portfolio Theory has been around for over 60 years and is the foundation of our industry.  It is about generating a solid long term return and is often reported in relation to a benchmark.  As an investment advisor for many years I have noticed that individuals can become numb to this information.  What does this all mean?

 

We work hard, we earn a living, we invest our savings, but why?  What is it exactly that we wish to accomplish with our money?

 

 

How do we know what we want to do with our money if we don’t have any metrics in which to base our saving on?  Our industry is always evolving and one large difference is the Goals Based Investing movement that I feel is crucial to any plan.  Simply outlining an individual’s goals can make a big difference with what an investment plan should look like.

 

Your investments should not be only about “Making my money grow” it should be about “Making my money grow for ___________ “.

 

With goals clearly identified your plan will have purpose.  With purpose, your investments will be suitable.  When your investments are suitable you will be comfortable and much happier.

 

I often get scoffed by clients when I bring up happiness since that is not an investment advisor’s traditional role.  Traditionally our jobs here are serious, we wear suits & ties (or power suits for women), we schedule our appointments, and our demeanor is calm & steady.  Rarely do people look to their financial advisors for happiness.  At the end of the day, it is one of my goals to make my clients happier about their investments and feel that their money is in good hands.

 

If you can fill in the blank above and have a goal for you to work towards, many positives will flow from there.  Take the time to build your plan or lean on some of the many professionals here that are willing to help you.