Check the background of this investment professional on FINRA BrokerCheck

Measurement vs Calculation

{2:18 minutes to read} The subject of this blog is a concept I learned recently when I went to get fitted for my golf clubs. It had to do with 2 types of determinants: measurement and calculation.

The golf clubs were measured based on where I hit the ball on the face of the club. The computer also calculated how far the ball travels. The measurement is actually where the ball hit the club; the calculation is how far the ball traveled. My golf club fitter, Woody, shared with me that the measurement is accurate because you are actually measuring something, but the calculation can be off.

I thought about how this relates to our work with our clients and planning their financial future. How much social security a client will receive if they retire today is a measurement. How much money someone has in the bank today is a measurement.

Once we start projecting out, we are calculating, and those calculations can be very, very different. As we say in financial planning, the only truth is where you stand today. We measure today exactly what someone has, which is called their current plan.

Once we start projecting and calculating, we don’t know how well their investments will perform; we don’t know what the taxes will be. Calculations are riddled with determinants that are not going to necessarily be accurate. Measurements will always be exactly what they are today.

I share that thought to help you understand that, even though your calculation says that 97% of the time you will be okay, that does not mean it is going to be accurate. If you would like to have more information about how we do our measurements and calculations to help people with their insurance and financial planning, give us a call.

Registered Representative offering Securities through American Portfolios Financial Services, Inc. (APFS) Member FINRA/SIPC. Investment Advisory Services are offered through G&G Planning Concepts, Inc. which is not affiliated with APFS. Strategic Wealth Advisors Network and Gassman Financial Group are not affiliated with APFS.

Any opinions expressed in this forum are not the opinion or view of American Portfolios Financial Services, Inc. (APFS) or American Portfolios Advisors, Inc.(APA) and have not been reviewed by the firm for completeness or accuracy. These opinions are subject to change at any time without notice. Any comments or postings are provided for informational purposes only and do not constitute an offer or a recommendation to buy or sell securities or other financial instruments. Readers should conduct their own review and exercise judgment prior to investing. Investments are not guaranteed, involve risk and may result in a loss of principal. Past performance does not guarantee future results. Investments are not suitable for all types of investors.

Michael Fliegelman, CLU, ChFC, AEP, CLTC, RFC
Founder / President, Strategic Wealth Advisors Network
(631) 262-9254
Connect with me On LinkedIn On Facebook
Follow me on On LinkedIn On Facebook On Twitter
Michael@SWANWealth.com
www.SWANWealth.com

Please note that the information being provided is strictly as a courtesy. Always confer with your CPA prior to attempting to take any tax deduction. Michael Fliegelman is not a CPA, nor should the contained be considered tax “advice”.

By |2016-10-20T02:22:43+00:00September 9th, 2016|Blog, Estate Planning, Insurance Planning|0 Comments

Leave A Comment