I personally have found in today’s fast-paced world of information, the feeling of analysis paralysis can set in on one’s saving/investment plan. Information overload if you will.
I recently had the pleasure of sitting down with a potential client who owned a local business. This individual was interviewing potential investment advisors and I could tell they were very eager to learn all their options.
During our discovery conversation, I was able to uncover the root of their savings plan anxiety. The uncertainty was stemming from where they should start investing discretionary money and how they should start. They kept telling me they felt behind the curve and that every other potential advisor they met with recommended a Roth IRA.
A Roth individual retirement account is a great place to start in our opinion, but we strongly feel when an investor deposits funds in a Roth IRA, it should be invested for long term goals. This is exactly why someone in their shoes should meet with a person in my profession, to discuss short-term and long-term goals.
Time horizon is where we as an advisory team like to start when helping folks design custom savings plans. The business owner looked at me for a second, and said, “Well it is a top priority for my family to look at purchasing a new home in the near future.” I thought to myself, “Perfect, this gives me a starting point to begin designing their family’s investment strategy.”
It turned out for this family, it made more sense to open a non-retirement account instead of a retirement account (such as a Roth IRA) based on shorter-term goals and cash flow. Again, investing for the long-term is a great option that we also recommend, but the goal most important to this family was to build a savings bucket to assist with a possible down payment on a home.
The point I am striving to get across is, we as a team want to learn and build these plans for you. Please lean on us if you don’t know where to start or how to start investing your hard-earned dollars. Client education is at the forefront of our process and we can’t stress this enough.
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Independent Advisor Alliance, a registered investment advisor. Independent Advisor Alliance and Marzano Capital Group are separate entities from LPL Financial.
