Archive for February, 2009

We are all receiving our important tax documents in the mail: year end statements, W2s, 1099s and so on. These documents are not only necessary for preparing your tax return, but they are also the core documents needed to put together your financial plan. Take advantage of having the bulk of your information in one spot by bringing your 2008 tax file to your financial planner after your CPA has completed your return. With the addition of your legal documents and your insurance information, your tax file should complete the checklist of items necessary to begin the financial planning process.

Isn’t it prudent to have a plan for navigating this uncertain economic environment?

I always enjoy talking with Barbara Dooley. In November, we had a conversation about how cancer has impacted my own personal financial situation as well as the impact it has had on my business perspective. Feel free to listen by clicking the link below:

A conversation with Barbara Dooley

Last week I met with several new additions to the Implementation Resources team. Staying on top of the news and strategies of each practice area represented by our implementation resources is a value added benefit to our clients. The common thread of my meetings seemed to be a back to basics approach.

First, I met with Steve Barth who is a partner and the chief investment officer at Bennett Thrasher Wealth Management. He is a CFA and CPA. We discussed how he is managing this difficult market environment. Steve led me through his asset management strategy which utilizes the talent available in the Atlanta area. One note that struck me was a comment he made about the credit rating on fixed income. Choosing a quality credit rating on fixed income has always been important, but bond insurance has perhaps offered a false sense of security about the safety of riskier bonds. This is particularly true when we now experiencing an environment where the insurers are rated lower than the issuers. An interesting predicament?

Speaking of insurance, I also met with Weldon Baird managing partner of The Baird Group in Atlanta. Weldon represents Northwestern Mutual with an emphasis on executive benefits, income replacement and wealth transfer strategies. Weldon was kind enough to host a luncheon for financial professionals with guest speaker Brian Henning, J.D. who is the managing director of specialty markets for Northwestern Mutual (NW).

Brian took a break from the cold weather in Milwaukee and joined us as we discussed how NW has “weathered” the current economic storm. He too commented on the benefits of a sticking to the basics and continuing a common sense approach. NW has remained solid because they haven’t strayed from the basics with “gimmicky” products. The leadership at NW resisted the allure of easy upfront earnings and continued to provide the same straightforward quality insurance products they have provided for years.

So what we are learning, hopefully, is to avoid the too good to be true – get rich quick schemes. Instead, develop a well thought out financial plan with a common sense approach in order to provide you and your family a sturdy financial foundation.

Do you have a new normal?  I know I do.  There is nothing quite like starting your own business only to learn that you have to take on cancer too.  By the way, did I mention that I also have a toddler?  Life changes for all of us and creates opportunities and new perspectives on how we manage our money.

Navigating the current economic crisis and the change that has come to America and our global nation is another “new normal” and begs a great question about investing:  where do I put my money?  Since I am no longer a broker I can’t tell you to pick stock A or dump stock B, but I can tell you how to think about investing.  And the basis for making these decisions is really no different than times prior to the economic crisis.

What is your risk tolerance?  Are you going to come unglued If your account is off 20 or even 50 percent?  What is your time horizon?  Will you leave your money invested for years or months?  How much income do you need?  Do you need capital preservation with inflation protection or do you need to maximize your growth?

These are questions that financial advisors have asked their clients for years.  And believe it or not, Warren Buffett, Bill Gates, and even President Obama cannot provide you with the answers.  Risk tolerance, time horizon and cash flow are personal and specific to each individual.  Address these issues first, as all prudent financial advisors will recommend, and you can take comfort that you are much more likely to implement the appropriate investment strategy for your specific situation.

Welcome to the Alberty Financial Blog!  As you get to know me through this blog you will find that I am passionate about financial planning.  I look forward to utilizing the Alberty Financial Blog for providing people with tools to build a sturdy financial foundation.  On a monthly basis, the members of the implementation resources team and I will post timely advice about what is happening in the financial industry.