Gaslowitz Frankel partners Craig Frankel and Robert Port met virtually to discuss “Investing for the Long Term: What You Need to Know” on our “Wealth Matters” radio show with special guests David Bibicoff of Strategies for Wealth and Fred Kettler of Kettler Financial.
Here are some “Investing 101” insights from the experts.
How Do You Identify Your Specific Investing Objectives?
Each person’s investment goals are different, and a lot of people aren’t even sure what their specific goals are when they first start the process beyond increasing their wealth.
David explains that the key to identifying your investment objectives is having a skillful person who asks the individual the right questions. What drives them? What are they passionate about? What is their purpose?
On a high level of financial thinking, David asserts that everyone really has the same overarching goal: financial security and confidence that they (and their families) have sufficient cash flow to maintain their current lifestyle or better. After that need is addressed, the advisor is able to move onto secondary objectives specific to each individual.
What Are The Roadblocks to Investing And How Do You Overcome Them?
According to Robert and Fred, some of the most common reasons people choose not to invest include:
- Feeling overwhelmed or feeling like the process will be too complicated
- Believing they do not have enough money to invest
- Procrastinating
- Choosing to save or spend their money instead
- Lacking trust in financial advisors/investors
Fred notes that money is one of the scariest and most emotionally-charged topics of conversation for many people, so he understands much of the fear that prevents people from investing. However, he explains that this can all be part of an open and honest conversation with your financial planner. Your financial planner can help explain which investments are wise for your unique financial situation and put your mind at ease. “People have to be open to share and be vulnerable,” he adds.
What Is The Most Important Question People Should Ask When Investing?
Craig notes that it might be difficult for people to answer questions like, “What kind of lifestyle do you want at the end of this?” So how do people really know what they want?
David agrees and notes that vague questions like these actually aren’t the best ways to identify someone’s investing objectives at all. He says instead that the primary question is, “What fulfills you?”
“Those are the specific motivators that will drive them to act,” David adds. “If somebody knows that they really want something, they’re going to do everything they can to achieve it. They will find a way to make it happen.” In short, identifying specific things you want you and your family to be able to have and to do in the future will help fuel the fire to start investing. Additionally, sharing those dreams with your financial planner is crucial, so they can map out a plan to help you achieve those specific goals.
Are you curious about other things to consider when investing for the long term? Watch the full episode of “Wealth Matters” here.
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