Yesterday, I had the wonderful experience of sitting down with clients to listen to their stories and get a first-hand appreciation of their life here.
The conversation is not complex: lovely, intelligent folks, active with young children (soccer, hockey, etc.) and in the challenges that modern day parenting presents (especially with social media concerns), active in the community and active in their professional lives:
Their key concerns: can we save enough to have a retirement lifestyle that is comfortable and have some left over for our kids.
As we always do, we check in on their goals and how those goals translate into their wealth forecast. Most importantly we also take stock of the progress that their wealth forecast is making since the last time we reviewed it, approximately 6 months ago (monitoring) and are there any lifestyle changes that need to be taken into consideration: additional costs, additional income, additional savings?
Where is their total net worth (including their recent home purchase, because they got tired of waiting) now, relative to where the wealth forecast had projected it to be.
Do we need to make any adjustments to their investment strategy to accommodate these changes and /or the current investing environment?
Based on our view of the current state of financial markets and the recent successes of our tactical model, we might recommend a little more (5%-10%) increased allocation to the tactical model and a similar reduction in the global equity model (with some stock indexes at record highs).
Asset allocation up-dating and re-balancing: It is extremely important and should happen at least every 6 months, if not sooner and it should be in conjunction with your long-term goals and objectives relative to where you currently sit in relation to those goals.
Are you on target to meet your goals?
Our clients are all on target to meet their goals because that is what drives the investing process, if there are changes to be made, they are quickly identified and executed.
That is managing wealth.
And it is so great to hear the stories about the kids and vacations and professions that are and should be the true focus of a family's life because they have their financial house in order.
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