By |Published On: Jan 31, 2022|Categories: Financial Planning|

Personal Finance

Personal finance is…personal.  The “right way” of investing comes from the early days of finance and includes ideas such as modern portfolio theory, efficient markets, and the optimal mix of assets. These theories are heavily influenced by mathematics. See last week’s post on math and finance.  Personal finance is a lot different.

However, the right way, or proper way, to invest money is more like an impressionist painting than a chapter in a finance textbook. It is not a one size fits all strategy. The right way depends on your life, your circumstances, your situation, your family’s situation, and your financial goals. Your optimal portfolio is the one that allows you to sleep well at night.

Planning Process

Helping find personal financial goals is the most important part of the entire financial planning process. Personal finance is personal.  What are your goals? – buy a home, retirement, send your kids to college, just to name a few of the many goals out there. The best way to implement these goals is to work backwards. What’s the goal? What’s the time horizon? What do you need to do every day, week, month or year in order to achieve the goals?

Finding a guide who will help you suss out your concerns, fears, and worries about personal financial goals, financial planning, money, and taxes is priceless.

You might be wondering, given the recent volatility in the market, what should I do? Should I buy what the professional investors are buying? What will the market return in 2022? As an accountability partner, I listen to you and understand your personal financial situation and I help you answer these questions.

There is no one right way to pick stocks and bonds and build portfolios. I will work with you to develop a personal financial process that suits you. I will strive to understand your goals, needs, and concerns and develop appropriate strategies for you to reach them.

If you’d like to chat, you can set up a free consultation.