Why You Should Have a Modern Day Moat!

{3 minutes to read}  As the saying goes, we live in interesting times, and this post-COVID period has caused many people to revisit their financial world. We’re living in a time when inflation has raised its head for the first time in many years. The younger generations have not seen inflation go up since we’ve lived in a very low inflationary period for the last 20 years or so. 

We also have had record amounts of volatility in the stock market. We have wars going on. We have balloons flying over our airspace. We have low yields on bank accounts. We have legislative uncertainty, a divided government, a very large budget deficit, the potential for adjustments to Social Security and Medicare, and ever-rising healthcare costs. Longevity is increasing, and as we live longer, we face more risk of running out of money. But I’m here to say we are going to be okay.

What we do to help people in times of uncertainty is to create what we call your present plan. And once we see where that individual is, we review ways to improve their situation by creating a modern-day moat. We need the moat to be able to protect our families, our income, our lives, our health, and insulate ourselves from the impact of things we cannot control like inflation, health care, long-term care, lawsuits, market volatility, disability, and death. Most of us live in a world where we have had our financial decisions made throughout time with different people having different objectives, and ending up with what we call the proverbial financial junk drawer, like what you might have in your kitchen full of rubber bands, paperclips, takeout menus, etc. Many people have accumulated financial products, investments, retirement accounts, wills, trusts, titling of assets, homes, etc., but they don’t have an overall picture.

Good planning to deal with some of the things that we’ve talked about in this article starts with creating your present plan. Just like if you were going to build a building, you would create a blueprint based on the property size — how much square footage you have. So, we say that the same thing should be created in the world of financial planning.

Too many advisors are focused on just the products they feel are best suited for their clients, but we don’t know what’s best suited until we understand what that individual may have. It was once told to me that the only truth in financial planning is where you stand today. Anything projected from today into the future is based upon certain determinants that may or may not come into being.

So, our philosophy is first to seek to understand where that individual, family, or business is, so we can help them get to where they want to be through smart planning.

If this idea resonates with you, and you want to create your present plan and work on getting where you want to be, financially, let us know. Give us a call. We are here to help.

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 and G&G Planning Concepts, Inc. are not affiliated with APFS and APA. 

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.

This material is for informational purposes only. Neither APFS nor its Representatives provide tax, legal, or accounting advice. Please consult your own tax, legal, or accounting professional before making any decisions. American Portfolios Financial Services, Inc.(APFS) and American Portfolios Advisors, Inc.(APA) are not affiliated with any other named business entities mentioned.