By Glen D. Smith, CFP®, CRPC®
Gone are the days when we stood around the BBQ waxing lyrical about cars and beer. Tomahawk steaks have replaced burgers and finances have replaced fenders. While we still boast about the six-foot fish that we almost landed, we’re getting better about not keeping up with the Joneses.
It’s not a competition
For most people, we’ve moved passed the days when we’d spar with our neighbors over the garden fence. Vacations, cars and cash really don’t matter. When it comes to the nitty-gritty of our assets, we shouldn’t inflate our finances to impress our neighbors.
I always like to have an honest conversation with my clients about their finances. Embellishing your equity at the beginning can seriously derail your financial planning when you’re asked to prove your [net] worth.
Honesty is the best policy
We know that everyone has different circumstances and their financial packages are unique. Honesty and openness are integral to the team at Glen D. Smith & Associates so we’re always transparent with our recommendations.
We always explain the pros and cons of each product – even if they’re not ideal for you – so that you can make the most informed decision possible.
Risky business
We’ve all thought about buying a lottery ticket. The $1 investment doesn’t seem too risky, right? But it’s a little different when we consider how risky we want to be with our finances. It’s important to be truthful with ourselves whenever we answer risk assessment questions.
What might seem to be a good financial strategy with a million dollars, can be unfeasible with only $100,000 dollars, because some investment packages have thresholds or penalties that may be prohibitive with a smaller dollar value.
It’s important to be honest with ourselves when we reflect on how risky we want to be with our finances. Decisions made today will have a significant impact on our future.
Glen D. Smith & Associates, Raymond James is located at 1029 Long Prairie Road, Suite C, Flower Mound, TX 75022. (469) 212-8072.
Glen D. Smith & Associates is not a registered broker/dealer and is independent of Raymond James Financial Services. Securities offered through Raymond James Financial Services, Inc., Member FINRA/SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Any opinions are those of Glen D. Smith and not necessarily those of RJFS or Raymond James.
This case study is for illustrative purposes only. Individual cases will vary. Prior to making any investment decision, you should consult with your financial advisor about your individual situation.
The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy selected.
Contributions to a traditional IRA may be tax-deductible depending on the taxpayer’s income, tax-filing status, and other factors. Withdrawal of pre-tax contributions and/or earnings will be subject to ordinary income tax and, if taken prior to age 59½, may be subject to 10% federal tax penalty.
Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.
