In the past, this was the time of year we escaped from the stresses of everyday life and turned to the excitement of watching the Pistons and Red Wings competing in the playoffs. Unfortunately, that’s not going to happen this year.
In addition, it appears our Tigers are already out of contention for post-season play. It’s just one rebuild after another in Motown.
Some of our local teams have brought in new general managers, tasked with becoming more competitive. In sports, as in actual life, if you’re continually rebuilding, you’re likely stuck in perpetual mediocrity.
Financial advisors are similar to sports general managers in that their objective is to assemble various pieces and turn them into a winner. For a financial advisor, the “players” often have multiple goals over a lifetime.
Objectives such as buying a home, protecting the family, building a college fund for the kids, achieving a worry-free retirement and passing on a nest egg to their heirs without a hitch.
To find solutions financial advisors need to be knowledgeable on a number of fronts, including insurance, college funding vehicles, investments and the ever-changing legal and financial landscapes.
So it’s necessary to periodically review goals and objectives. On occasion, a client will say nothing has changed, but the reality is the world around us is rapidly changing at an alarming pace.
For example, in this fast-paced, technology driven world, we have problems and concerns that weren’t even imaginable just a few years ago. I’m referring to the COVID-19 pandemic, of course. We aren’t the first generation to go through a heartbreaking pandemic, but the last time was a hundred years ago. So even though many households were prepared for emergencies, few could have envisioned the incredible impact a pandemic would have on our lives.
Technology has brought us other issues and challenges we never imagined years ago. In the past, when security was mentioned, we thought of installing alarms and cameras in our homes. But in today’s high-tech world, cyber security is the big threat.
For both individuals and businesses, cyber security is the technology of protecting the data on your computers from hackers. Ransom ware is the malicious software used to hijack that information. If you want it back, you have to pay.
The Colonial Pipeline, which transports fuel oil from Texas to the east coast is a current example of an issue with ransom ware and cyber security. And I’ve personally received an email threatening my computer if I didn’t send money.
A few years ago, a chip shortage might have been the result of a bad potato crop. Most recently, a chip shortage brought the auto industry to a crawl.
The point is simply that our world is rapidly changing. There’s no such thing as a lifelong financial plan that works for a lifetime. Life simply throws too many curves at us. Like a good general manager, a financial advisor needs to observe the present and project what the future may bring.
For a team to be successful it needs a leader that can assemble and coordinate all the moving pieces. A financial advisor has listen to concerns, develop and implement solutions, stay current with the financial world and project what lies ahead in finance and technology. It’s a major responsibility.
Do you know someone who would like to meet with a financial advisor?
Ken Morris 248.952.1744
E-mail your questions to email@example.com
Ken is a registered representative of LPL Financial. Securities and financial planning offered through LPL, a Registered Investment Advisor, member FINRA/SIPC. Ken is Vice-President of the Society for Lifetime Planning in Troy. All opinions expressed are those of Ken Morris. LPL and Society for Lifetime Planning are independent companies. Investing involves risk including loss of principal. No strategy assures success or protects against loss.