FAQ’s…

Q: Why should I invest in the market?   A: The reason people need to own equities (stocks) and real estate is to fight inflation. Cash, bonds and CDs don’t generally produce enough long-term return to beat taxes and inflation, while at the same time delivering lifetime income.   Q: Why don’t you charge by the hour?   A: Our meter doesn’t run. If it did, there are issues of importance that we wouldn’t get to because of clients’ fears that the meter is running.   Q: Why shouldn’t I retire?   A: Retirement is not a word we like. Transition to less work…find a sense of purpose…something that will get you out of bed, etc. Those without that sense of purpose typically lose their identity after their career and live shorter, less fulfilling, less healthy lives… Have you considered lifetime income, estate planning, long-term care, or health insurance?

Q: Why do I need a plan?                                        A: Most individuals and family members need to ask themselves the big question: Which will live longer: you or your money? You need a plan that will address this question. Your plan must give you the best shot at the answer you want to this question: YOUR MONEY. To give yourself the best shot at this, you must spend less than you earn. That way your investment portfolio can grow over time. If it grows even when you draw money out, you can give yourself a raise to keep up with inflation. To illustrate this goal, we use a concept we call The Dry Wood Pile. Imagine that you are managing a tree farm. The tree farm represents your long-term, diversified portfolio of stocks, bonds and cash. If the tree farm needs to produce wood to heat your home, there is one thing you know: You don’t cut a tree down and try to burn it in the fireplace the next day! You need a dry wood pile next to your house. The wood needs to season so that it’s ready to burn. The clients we have who are in the “draw phase” or income phase of using their assets that weather market volatility the best are those that have sufficient dry wood in their dry wood pile so they don’t have to “harvest” in down markets. Periodically, we do harvest from the tree farm to re-supply the dry wood pile.