The Investment Services Toolbox: Avoiding “Maslow’s Hammer”
“I suppose it is tempting, if the only tool you have is a hammer, to treat everything as if it were a nail.” American psychology pioneer Abraham Maslow introduced the phrase to modern culture in his 1966 book, The Psychology of Science and it's a timeless principle that still holds true.
It’s human nature to take the path of least resistance. We’re prone to work with the tools we’re familiar with and then try to adapt the problem to fit the solution we’ve already decided on. As with so many things, the path of least resistance is rarely the right path forward, and the more complex the topic at hand, the more important it is to be sure you’re using the right tools for the right job.
When it comes to investments and retirement planning, many financial advisors only have one tool in their toolbox. Some stockbrokers sell stocks or mutual funds exclusively; some insurance agents only sell life insurance and annuities. Those products all have their uses but work best as component parts of a comprehensive, mixed solution.
It’s important to have an advisor that has a complete toolbox to provide the correct solution and to recognize that this solution may be a mix of different financial vehicles. It is equally important to realize that your financial needs will change along with your stage in life and that adjustments may be required along the way. At McBeath Financial Group we take a different approach that begins with a thorough assessment of the current financial picture. From there, with an individual’s needs and goals in mind, the question is how to create the best path for success to reach those goals, within the established risk and growth parameters. It’s essential to have access to the tools needed to offer the most efficient mix of financial products, to provide a more successful retirement plan.
With a team that includes Registered Investment Advisors, CERTIFIED FINANCIAL PLANNERs™, a Chartered Financial Consultant, Licensed Insurance Agents, a Registered Social Security Analyst® a Certified Trust and Fiduciary Advisor (CTFA), and a tax planner, McBeath Financial Group can offer a variety of financial solutions. Their combined experience and certifications in so many areas of financial planning are essential to helping their clients plan the retirement they've dreamed of and to give them confidence that their money will last as long as they need it.
“Our typical client is within two years of retirement. We work with people who have followed the traditional advice to save 10 to 15% or more of their annual salary, so when they come to us, our clients already have a respectable nest egg,” founder, Krista McBeath says. “Most people just want to know when it will be ok for them to retire and the best ways to make their money last.”
“I don’t recommend retirement for anyone without planning, calculating and projecting for a variety of scenarios,” she continues. “We only agree on a retirement date after a calculated stress test provides a very high success rate for maintaining the quality of life without running out of money.”
McBeath Financial Group’s process is simple. During the complimentary discovery meeting, clients share their current financial situation and talk about their goals and priorities. If both parties feel there is a benefit in working together, Krista begins the investment and financial planning process from this point forward, taking care to find the best ways to maximize the options for future income and distribution of funds.
This is where it’s important for a financial advisor team to have many tools and not just that metaphorical hammer. McBeath Financial Group's focus is to provide detailed and efficient plans for helping clients achieve their financial goals. Their Technology Empowered Advisor Method (TEAM) is a unique retirement planning process that integrates the personalized touch of a relationship-based advisory team with high tech software tools to assess the client’s current portfolio and then analyze options from a variety of financial vehicles.
Computer stress tested solutions generate detailed reporting that the team uses to educate clients on future financial projections or potential challenges. The in-depth calculations for success, along with their guidance have a primary goal: to give clients the confidence to enjoy the stress-free retirement they’ve earned.
“In constructing a portfolio, all clients will have different needs and desires. Let's use the example of constructing a home. Some may prefer small and simple; not overly sophisticated. Others might prefer multiple levels that require more upkeep but provide them more space to grow. Regardless, the one thing they all have in common is the foundation, but then an exact mix of services varies according to the client’s goals,” Krista explains. “We have at least an annual meeting with every client to review their portfolio and to make any adjustments as individual circumstances change.”
All too often, the financial plans of individuals are unknowingly put at risk because their hard-earned investment dollars have been ‘hammered’ into a financial vehicle that fits the only tool available to the financial professional that is supposed to be protecting them. For a balanced retirement plan, seek out a financial planning team with a full complement of investment options in their tool belt!
Krista McBeath is an Investment Advisor, Chartered Financial Consultant, a Licensed Insurance Advisor, a Fiduciary, and an experienced tax advisor who specializes in financial planning, investments, and insurance. She utilizes advanced tools for in-depth calculations that analyze tax and retirement scenarios to help her clients avoid a future tax time-bomb. Whether this means enjoying more of your hard-earned money in retirement or passing along assets to loved ones with less tax burden, planning makes the difference.
Her Amazon best-selling book, The Generational Wealth System outlines a holistic approach to preserving lifestyle, wealth and legacy.
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