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5 Financial Moves to Make Now for Economic Security in Uncertain Times

5 Financial Moves to Make Now for Economic Security in Uncertain Times

By    |   Monday, 21 August 2017 12:14 PM

Why is it that investors are always so surprised that their investments don’t work out?

Looking back with 20/20 hindsight, it’s clear that what seemed like a good idea at the time was little more than another fallacious emotional decision.

Even under the best of conditions, with perfect rear view vision, financial security and managing investments under today’s market conditions are challenging.

Investor behavior is what drives markets. They react to the dramatic events of the day causing volatility. People are predictably irrational, and markets reflect that.

How can an investor maintain financial stability while at the same time be prepared to take advantage of developing market opportunities as they arise?

Building a secure investment plan takes a commitment to following five critical steps.

The first step: Surround yourself with an experienced advisory team.

Wearth management professionals who incorporate legal, financial and personal well-being in their practice are best suited for this effort.

Lawyers as wealth managers are being trained, for example at the Texas A & M Law School LLM program in Wealth and Risk Management, to coordinate the various professionals whose specialized education and experience are needed.

Along with the lawyer, a typical team includes accountants, estate counselors, money managers, retirement experts, and even family dynamic advisers.

The second step involves specifying specific short, medium, and long-term goals. It’s not easy. There is a myriad of strategies that can be deployed to protect assets, grow capital, and generate suitable levels of income.

Planning does not occur in a vacuum. Every person’s circumstances have unique constraints and limitations beyond the usual considerations of risk tolerance and liquidity needs.

The third step requires making decisions as to priorities. There is always a trade-off and balancing of interests when it comes to goals.

Creating a written investment and life plan policy statement is one way of having some assurance that decisions in the future are oriented to achieving clear objectives. Emotions often run high in reaction to current events. Reaching good decisions starts with good planning.

The fourth step will use the policy strategy to develop the tactics to deploy limited financial assets most effectively.

There is always the risk of over-reacting to random events and situations that happen with great regularity. At these times, professional experience counts.

The fifth step is constant monitoring and revising the financial and life plan.

Everything involving human beings comes with undercurrents involving emotional desires as well as financial needs.

Over time, everyone has changes in their lives which necessitate adjusting the plan to newly realized goals and objectives.

Using the 5-Step Plan is an organized way of achieving financial security and, perhaps even more important, a sense of personal fulfillment.

Denis Kleinfeld is known as a strategic tax and wealth protection lawyer, widely published author and creative teacher.

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Using the 5 Step Plan is an organized way of achieving financial security and, perhaps even more important, a sense of personal fulfillment.
financial, security, economic, investors, security
Monday, 21 August 2017 12:14 PM
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