Investment/Asset Accumulation

  "An investor without investment objectives is like a traveler without a destination."   Ralph Seger

This is a key component of every plan and generally the area that creates the most interest of the client.

To invest you must generate capital.  Everyone has capital.  When we are young we have human capital.  The key is to convert human capital to financial capital because as we get older our human capital deminishes and we need to rely more upon our financial capital.  The "pay yourself first" mantra is the primary step in building a solid investment strategy.

Recently, some financial experts have talked about a "new asset class."  The asset they talk about is permanent life insurance.  Certainly not a new asset but an indication of the mass media coming around to the numerous advantages of permanent life insurance. 

Where most people make a mistake is when they jump to investing without taking care of the other components of their financial strategy first. There is a proper sequence to building your financial strategy and not following that sequence could hamper your success.

There are numerous reasons to invest and many areas to take into consideration when building your investment plan. Some of these include: 

  • Buying a home/vacation home - When and where will impact your investment strategy
  • Funding college for children - Accumulating assets appropriately such as in your name versus your children's name. Gaining an understanding of your "Expected Family Contribution" and the FAFSA process will help determine how much you will need.
  • Retirement - Income based or expense based? Do you know how to determine your retirement income gap?