See Why We're Different
You probably have some preconceived notion of what financial advisors do.
Now, take a closer look at Financial Enhancement Group's unique:
a good investment
starting point
Maybe you've had a major shift in your life—a new job or inheritance.
Perhaps you're on the cusp of retirement or just beginning to plan.
If you're new to investing or have never hired a financial advisor before, there are simple fundamentals to retirement planning you should know—fundamentals "the industry" doesn't teach.
And, yet, they can be absolutely critical to the success of your plan.
Let's start with a "reality check" about investing.
Distribution:
Retirement isn't the finish line. So, why don't other financial advisors even talk about this critical part of your life plan?
Retirement isn't the finish line. So, why don't other financial advisors even talk about this critical part of your life plan?
Your financial life is broken down into three phases:
1. Accumulation—the years you save and grow your nest egg.
2. Preservation—when the assets in your nest egg have grown to the point they are worth more and, therefore, work harder than the money you're saving. This is when your plan focus should turn to protection from risk.
3. Distribution—the latter years of your plan, when you begin to withdraw from your assets. This is the most important phase, because this treasure you've accumulated must last a lifetime, or maybe two or three lifetimes. But, because you're withdrawing on it, your wealth is greatly affected by changes in the market, taxation and other factors. Unlike the other phases, when advisors can leave you in a "tax-free" mutual fund with a massive group of other investors, distribution is very personal.
So, why do almost no financial advisors focus on distribution?
Well, we can't speak for other advisors. But what we can say is, as a fiduciary* firm—meaning we're licensed to manage your money ourselves—we have the ability to focus heavily on distribution.
Further, we are uniquely partnered and staffed with CPA and tax-planning experts to deliver smarter, more tax-savvy investment strategies.
* Fiduciary: a legally binding relationship mandating your advisor treats your assets like they would their own assets. Your best interest must be placed before commissions and simple questions of suitability. Not all advisors are fiduciaries.
1. Accumulation—the years you save and grow your nest egg.
2. Preservation—when the assets in your nest egg have grown to the point they are worth more and, therefore, work harder than the money you're saving. This is when your plan focus should turn to protection from risk.
3. Distribution—the latter years of your plan, when you begin to withdraw from your assets. This is the most important phase, because this treasure you've accumulated must last a lifetime, or maybe two or three lifetimes. But, because you're withdrawing on it, your wealth is greatly affected by changes in the market, taxation and other factors. Unlike the other phases, when advisors can leave you in a "tax-free" mutual fund with a massive group of other investors, distribution is very personal.
So, why do almost no financial advisors focus on distribution?
Well, we can't speak for other advisors. But what we can say is, as a fiduciary* firm—meaning we're licensed to manage your money ourselves—we have the ability to focus heavily on distribution.
Further, we are uniquely partnered and staffed with CPA and tax-planning experts to deliver smarter, more tax-savvy investment strategies.
* Fiduciary: a legally binding relationship mandating your advisor treats your assets like they would their own assets. Your best interest must be placed before commissions and simple questions of suitability. Not all advisors are fiduciaries.
Taxes always matter:
401k? IRA? Uncle Sam doesn't care. Find out why every retirement plan needs a tax strategy.
401k? IRA? Uncle Sam doesn't care. Find out why every retirement plan needs a tax strategy.
Uncle Sam is an amazing and efficient asset gathering machine. The assets he looks for are yours. With thousands and thousands of employees, courts and laws, he is going to get a large part of your assets—unless you arm yourself with solid planning to avoid and lessen the tax burden.
There are two tax codes. One for the informed, and one for the ill-informed.
There are two tax codes. One for the informed, and one for the ill-informed.
Risk-free investing is a myth:
Every investment has risks. Risk is not something that can be eliminated.
Every investment has risks. Risk is not something that can be eliminated.
Even the FDIC-insured "Certificate of Deposits" is risky. It can be dramatically affected by inflation and its lessening of future buying power compared to the day it was deposited. Locking up assets prevents liquidity and the ability to cease timely bargains.
Volatility: Embrace it:
Investing isn't about predicting winners and losers. It's about adapting quickly to the inevitable change in the market cycle.
Investing isn't about predicting winners and losers. It's about adapting quickly to the inevitable change in the market cycle.
The information age means international markets are as connected as local markets. An earthquake in Japan, a banking crisis is Europe, a currency pinch in South America, all drive volatility in the U.S. markets immediately. Global communications at the speed of light means the markets react and overreact at once.
Volatility is now the norm. But that doesn't mean investor panic and knee-jerk reactions just come with the territory. They might for some. But you should find an advisor who thinks differently.
Volatility is now the norm. But that doesn't mean investor panic and knee-jerk reactions just come with the territory. They might for some. But you should find an advisor who thinks differently.
The "market" is not the "economy":
Understanding this can make a significant impact on how you and your advisor make decisions.
Understanding this can make a significant impact on how you and your advisor make decisions.
The markets, as reported by the Dow Jones index, the Morningstar Bond index, the Standard and Poor's 500 index, can all be distorted by single securities not at all reflective of the economy.
The mighty Dow Jones is only 30 industrials companies. Five companies—IBM, Caterpillar, Chevron, McDonalds, 3M and Exxon—make up more than 40 percent of the famed index.
A roaring up market can happen during a deep recession. And a market can "crash" during a healthy, growing economy. Markets are people— just as fickle, confused and mistaken as any of your neighbors.
The mighty Dow Jones is only 30 industrials companies. Five companies—IBM, Caterpillar, Chevron, McDonalds, 3M and Exxon—make up more than 40 percent of the famed index.
A roaring up market can happen during a deep recession. And a market can "crash" during a healthy, growing economy. Markets are people— just as fickle, confused and mistaken as any of your neighbors.
