Financial Planners Don’t Have a Crystal Ball [Video]
Today I want to clear up a misnomer that I hear all the time.
I get asked…
“What does a financial planner do?”
“Can he get me out of the market and keep the stock market crash from happening to me?”
The answer is No. We don’t have a crystal ball to see the future. But what we can bring to the table is the ability to measure your risk and tell you how much risk you should take.
As we help you plan, we are measuring risk for you and making sure we look for growth and stability of income. That way you will have a portfolio set up so that if anything happens, you can still retire.
Transcription:
Dan Searles:
Hey guys, this is Dan Searles. I’m here with my granddaughter Avi, and we’re working together today from home. I’m checking in with you because I want to clear up a misnomer that I hear all the time.
What does a financial planner do?
“Can he get me out of the market and keep the stock market crash from happening to me?”
No, Warren Buffett’s gotten really beat up according to news reports here lately. So if Warren Buffett, the Oracle from Omaha, can’t get it right, none of us are going to get it right.
So what do we bring to the table?
Well, what we can bring to the table is, we can tell you how much risk you should take, and we can measure your risk. So when you’re getting…I recently had someone that thanked me for getting them out of the market, and I got them out of the market back in January. I’m not a genius. I looked at what she was doing, and I said how much income, she was getting ready to retire, how much income she was going to need from her investments. And I realized that if the darn investments dropped 20% for any reason, any kind of black swan event, it was going to make it impossible for her to retire.
So what I did, is I said, “Let’s rearrange your portfolio for income. So far, you’re still working. You’ve got it measured for growth. Let’s re-do your portfolio for income so that if anything happens, you can still retire.”
I didn’t foresee anything. I have a crystal ball, but it doesn’t work. So I just simply knew that she couldn’t take any more risk and still be able to retire.
So that’s what we do, is we measure risk for you and make sure we’re looking for growth, and we’re looking for stability of income. Hopefully with some inflation built in. Once we build that, we do growth with the rest.
Did I get it right, Avi?
Avi:
Yes.
Dan Searles:
Okay. All right you guys, that’s the word for the day. Stay safe out there and this too shall pass. I promise, this too shall pass. All bad things do. Peace.
At Medallion Financial Group, we believe financial planning is about Family. We have been helping families invest in the future since 1987 through a holistic planning approach. We recognize there are a variety of needs when it comes to retirement planning, plan rollovers, annuities, college planning, life insurance options, and investment management. It is easy to get lost in a sea of choices. Our financial advisors help with the basics and beyond to enable our clients to get the education, advice and management they need to retire with confidence.
Our focus is twofold: first and foremost, we are fiduciary advisors. We stand against any violation of laws, values, and ethics. Second, we treat our clients as part of our family, not only those who call Maryland and Georgia home, but clients across the US who have benefited from our reputation of personal service, integrity, and expertise.
We strive to exceed client’s expectations – because we have high expectations of ourselves.
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