Financial Opportunity Amid the Chaos

Twice in the past week I was in meetings where there was actual optimism about the economic future in Texas. As the saying goes, "Fear overcomes greed, and certainty overcomes fear." Regardless of political persuasion, having a fixed political team in place in Washington who have passed economic legislation is having a positive affect on local industry. Little by little, the known is overcoming the unknown, and this is allowing people to plan and move forward - especially leaders in industry.

Right now, the refinance boom - though not a great thing usually for the housing industry - is getting money flowing through the economy. Interest rates are unbelievable right now for buying houses. Prices are very low for industrial goods like cement and steel.Producers, those who have traditionally moved the economy in a positive direction, are once again seeing the opportunities in the midst of crisis, and see a narrow window in which to move forward before inflation looms over us -- at which time their strategies will change, but not their initiative in finding opportunity.

BusinessWeek author Ben Steverman wrote, in A Changed World for Financial Advisers on February 11, 2009, about the lessons learned by financial advisers through the past couple of years. In the article, the ideas to better protect and plan for clients get tied up in the debate between actively managing portfolios versus "buy-and-hold" strategies, which are less expensive and acknowledge the difficulty of timing due to the unpredictability of markets.

The article's bottom line gets back to three basics:
• risk assessment,
• emphasizing cash flow, and
• a wholistic approach to nest-egg building.

Mr. Steverman says advisers have found they should spend much more time with each client to determine an appropriate level of risk, often in spite of clients who calculate their risk-tolerance level as being higher than it actually is, especially in a downturn in the markets. He says that investment advisers are also going to have to pay more than lip service to their responsibility for their clients' total financial outlook, rather than just investment returns. Regarding retirement dreams, Steverman says that, "advisers can help clients make sure they are earning enough, saving enough, not borrowing too much, have realistic retirement plans, and have enough insurance."

I’d love to talk with you and help you navigate the options, so you can get on with the life you’d love to build. Send me a note about what you are looking for. Call me … 214-440-2483.