Learn how we work to help busy families grow their wealth for the future

Open Illustrative Case Study

 

Much Discussed – Seldom Accomplished

casestudy_growingwealthThe Situation: Young, Successful Couple in their mid 40s, with two young children.

If investing is so easy, why do so many people retire without enough assets to maintain their lifestyles? The not-so-obvious answer is lack of discipline. Growing your capital is more than just portfolio structure.

The Solution: We typically attack the challenge of growing wealth for young families, through an ongoing financial planning process as opposed to a one-time analysis. At Resnick, this process is played out over an extended period of time with ongoing coaching by the advisor to the client, which creates a high probability of success, thus meeting the client’s goal or a revised version of that goal due to creating awareness and re-evaluation of earnings and spending issues.

In working with clients toward wealth creation, the following factors uniformly come into play:

Competition for Assets – The couple faces competing needs other than simply saving money. A few of these needs are:

  • Sending children to college.
  • Buying a bigger home.
  • Driving a nicer car.
  • Going on more vacations.
  • Keeping up with the Joneses.

Portfolio Structure – The structure of a portfolio is probably the most important factor in reaching return targets. Unfortunately, there is great emotion attached to investing money. The couple faced some critical decisions:

  • Temptation to time the markets.
  • Failure to diversify across asset classes.
  • Emotional selling based on fear of current events.
  • Failure to investigate alternatives.

Failure to Monitor Investments – Once the portfolio is structured, constant monitoring is critical to success. Failure to monitor includes:

  • Not enough time to make comparisons of your own investments vs. alternatives.
  • Failure to compare results to similar investments.
  • Failure to rebalance portfolios periodically.
  • Acting without a complete understanding of each portfolio line item.

Underestimating Retirement Needs – The couple needs to fully understand what they need to retire in the way they imagine:

  • Thinking that less money will be needed during retirement years (almost never the case).
  • Spending more in retirement is more common, as people have more time to indulge themselves in travel and entertainment.

Assuming They Will Make Up for Lost Time – This allows the couple to feel less bad about postponing the growing of their wealth, the couple may feel that they can:

  • Save more later
  • Planning to work to a later age

The Result: As Investment Advisors, it is our responsibility to bring such issues to the attention of our clients. For this couple, working through this process and continually evaluating their situation, gave them the confidence that they were on track to achieve their financial objectives. The family now can continue to live their lives without the worry that their financial goals are out of reach.

Close

 

We work with you to evaluate your unique circumstances, objectives, risk tolerance and future aspirations to find the most appropriate wealth management approach for your financial goals.

Cash Flow Planning

We believe that cash-flow planning is one of the most important aspects of financial planning. We know that you need funds easily accessible for expenses such as home expenses, taxes, child rearing, and other life events. The team at Resnick Advisors ensures that your plan integrates strategies to appropriately plan for these needs.

We believe that any plan, regardless of goals, integrates being prepared for whatever life hands you, expected or not.

Financial Planning

Planning in many cases may be the first step, but it can also be the biggest. Integrated Financial Planning is essential for successful wealth management over the long-term. Working with our team of experienced advisors, we will customize a financial plan that puts you on track to achieve the goals you have set for your future.

In each step of our process, we are focused on having you feel confident and clear on what your plan is and how it fits into your broader objectives. Your advisor will ensure that you are comfortable with all aspects of your plan, and will drive the execution of next steps, while being supported by the full Resnick team. You can expect your advisor to regularly communicate any reasons to readjust your strategy based upon major life changes or circumstance. Our best successes come with clients who are confident that the decisions made in their financial affairs are aligned and being executed according to the agreed upon plan.

Investment Management

Our team of highly skilled investment advisors bring 175 years experience to our investment management practice. We believe that decades of research, not speculation, builds successful investment management strategies. We work with you to evaluate your unique circumstances, objectives, risk tolerance and future aspirations to find the most appropriate investment management approach for your financial goals. We then create an investment plan with a balance of assets necessary to meet your long-term goals, with ongoing portfolio monitoring and re-balancing as the market or your situation changes.

Education Funding

We seek to help our clients make an investment in their children and grandchildren’s future through education funding. We work to incorporate education funding strategies into your overall investment objectives. We know that investing in your children can be one of the most important things you can do for their future and we look to help you make this investment in the most efficient way possible for you and them. Through our research on the best college saving tools and available plans, you can be sure your loved ones are able to achieve their long-term education goals with your support.

Managing Risk

Central to our approach to wealth management is understanding your risk tolerance. We believe that your risk tolerance and goals must be aligned in order to achieve your long-term objectives and for you to feel comfortable with your financial security. We work to minimize risk while keeping in line with your tolerance levels and your overall goals. This is reflected in all aspects of your investment and asset allocation, along with our long-term financial planning activities. We also work with our clients to ensure that their other trusted advisors are aligned and have proper protection in the form of insurance – property, life, medical, disability and others – so that our clients and their estates are protected for the long-term.

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