Who do you suppose you are to your financial advisor? Chances are you are less a person than a “type”.
Maybe you’re the corporate manager who takes risks. Maybe you’re the single parent struggling to build a college fund. Maybe you’re the middle-aged couple who must take care of ailing parents. Whatever the details, what you are not is a unique individual.
It has been my experience, that many financial advisors rely on a handful of investment models to cover the life circumstances their clients find themselves in. They have created six, or eight, or ten portfolios intended to encompass a broad range of circumstances and personality types, and their job becomes fitting you into one as best they can. Whether they have ten clients or a thousand, each will be fit into one of these models, one way or another.
At Heritage Investors, we refuse to shoehorn our clients into cookie-cutter investor models. It would be a disservice to our clients, and it doesn’t work.
Let’s say you are a married couple living next door to your married friends. You are all in your early to mid–40s, reasonably healthy, working decent jobs, and looking to retire in a couple of decades. Let’s say further that you both go to a financial advisor who drops you into the same “perfect” predetermined investment portfolio.
What happens when your life takes an unexpected turn? Life happens. You or your spouse—or both of you—may fall ill or be forced into long-term unemployment. All of a sudden your retirement 20 years in the future takes a backseat to making ends meet today. Or one of you is diagnosed with a terminal illness, and you realize you probably won’t be around in 20 years. At that point, your focus may be meeting expenses and providing for your survivors.
The point isn’t just for tragedies, either. Your calculations will also change with good fortune. Let’s say you come into an unexpected inheritance or some other windfall. Good for you! While you’re celebrating, though, you should also start thinking about how your new situation has changed your plans for the future.
As CERTIFIED FINANCIAL PLANNERS™, we at Heritage Investors pride ourselves on treating each individual or family situation as unique. That’s the way we like it, and that’s the way our clients like it as well. If you think that, you too, may like this approach, please get in touch.