Being Smart with $$ -- Money Not Earned is Money Lost

Is it worse to lose $100,000 in the stock market or not earn $100,000 that you should have earned? Most of us look at our financial statements and notice the money we earned or lost, but rarely do we notice the money we didn’t earn but should have. Each of us has a percentage allocation to stocks that is advisable for our own circumstances. But many advisers love to guess on the direction of stocks and gamble with your money. If your adviser loaded you up on stocks far beyond an appropriate amount and you lost $100,000, you’d be furious. But this year I have seen many advisers bet that a crash is coming and REDUCE their clients’ stock holdings below what is appropriate and this has cost clients a fortune since the market is UP over 20% year to date. If your adviser sold $500,000 of your stocks at the beginning of the year on a gamble, they cost you $100,000! It’s time to notice the money you should have earned as a loss and tell your adviser to stop gambling with your money. Or better yet, get a new adviser who won’t do it.

Larry Pike, CFA

Client Priority Financial Advisors LLC

www.clientpriority.com

Being Smart with $$ -- Save Now to Have More Later

Would you rather work in your 70s because you want to or because you have to?  If you are behind on your savings, it’s never too late to start making changes that will help us later. If you are 15 years from retirement and save an extra $1,000 per month while working, you may have an extra $1,000 to spend every month for a 30-year retirement. Start 20 years before retirement and you may have an extra $1,500 to spend every month in retirement.  There’s always a way to make choices and changes now. (Assumes 6% investment returns while working.)

Larry Pike, CFA
Client Priority Financial Advisors LLC
www.clientpriority.com