Recipes for Financial Success
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Achieving your family’s goals in our complex modern era is easier with a masterful ‘chef’ helping to shape the menu. TABLE Magazine has compiled a list of the regions leading wealth management advisors and asked them a questions to help guide you in preparing the perfect recipe for financial success.
How do I deal with constant volatility?
Markets will always fluctuate. But whatever way they move, a comprehensive financial plan is one of the best strategies to stay on track toward your goals. Your UBS Financial Advisor monitors the current environment and will work with you to ensure your plan and your portfolio reflect changing conditions. Volatility may be unsettling, but with a long-term plan in place, you can feel more confident about the future.
For some of life’s questions, you’re not alone. Together we can find an answer.
Lee Oleinick, Managing Director—Wealth Management
Walnut Wealth Management Group, UBS Financial Services, Inc.
What is the difference between asset allocation and diversification?
Asset Allocation is the implementation of an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the investor’s risk tolerance, goals, and investment time horizon.
Diversification is a risk management strategy that mixes a wide variety of investments within a portfolio. A diversified portfolio holds a mix of distinct asset types and investment vehicles to limit exposure to any single asset or risk. It is a way of constructing portfolios with specific target weights for various asset classes and periodically rebalancing the portfolio to maintain those target weights. The goal is not to get the best absolute returns over time. Instead, the goal is to get the best risk-adjusted returns over time.
Kevin E Miller is a General Agent of NM, NLTC and a Registered Representative of NMIS. Managing Partners are not in legal partnership with each other, NM, or its subsidiaries.
All investments carry some level of risk including the potential loss of all money invested. No investment strategy can guarantee a profit or protect against loss.
Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company (NM) (life and disability Insurance, annuities, and life insurance with long-term care benefits) and its subsidiaries, including Northwestern Long Term Care Insurance Company (NLTC) (long-term care insurance), Northwestern Mutual Investment Services, LLC (NMIS) (investment brokerage services), a registered investment adviser, broker-dealer, and member of FINRA (finra.org) and SIPC (sipc.org), and Northwestern Mutual Wealth Management Company® (NMWMC) (investment advisory and trust services), a federal savings bank. NM and its subsidiaries are in Milwaukee, WI.
Kevin E Miller is a General Agent of NM, NLTC and a Registered Representative of NMIS. Managing Partners are not in legal partnership with each other, NM, or its subsidiaries.
What should an investor do in light of inflation and recent market volatility?
2022 has started out with a perfect storm of negative events that has blocked out much of the sunshine and optimism of the last three years in the market. Many concerned investors wonder whether they should sell to protect their nest eggs from possible further decline.
History shows us that despite short-term drops, investors generally fair better when they stay invested. Instead of “panic-selling”, investors should be seeking guidance to determine whether their current risk tolerance and asset allocation matches their long-term goals and comfort level and then hold tight through good markets and bad ones alike.
Gennaro Marsico, JD, CFP®, CIMA®
Senior Vice President, Investments
Spanos Group of Raymond James & Associates
How much Is Enough?
How do you make sure a financial inheritance will help and not hinder your children’s life’s journey?
It is a delicate balance of how to keep your children hungry to instill a sense of struggle and achievement in their lives. Everyone must develop a moral identity, or the deepest sense of themselves. This is why it is a very difficult question, which is important to define and quantify for each of your children. It is paramount to have positive and continual communication within your family. Why not encourage an attitude where money is seen as an instrument to true happiness?
Beth H. Genter, Schenley Capital, President
How will I know the right time to retire?
When your savings provide enough income to last your lifetime. It’s ultimately about your needs and desires. The amount can be difficult to pinpoint and will change due to inflation and stock market volatility. Paying off debt and determining your estimated costs for future needs, lifestyle, and legacy gifts are a good first step. It can seem complex, though working with a professional financial planner who is experienced in guiding people toward a personalized plan can help you reach retirement at the appropriate time with the income you need and want.
Ken Como, Executive Vice President
Bill Few Associates, Inc.
What options are available to transfer a portion of my wealth to family members and/or charitable organizations after I pass away?
A high cash value Single Premium Whole Life (SPWL) product can help you direct a portion of your wealth to those important people and organizations in your life. When you purchase a SPWL policy, you pay the premium in one lump sum and your death benefit is paid out tax free to the beneficiaries.
This type of policy builds cash value quickly, generally within one to four years. You can borrow against the policy's cash value or use optional living benefits riders, which allow you to tap into the policy's death benefit tax free in the case of certain health events such as a terminal or critical health conditions, giving you access to this policy should you need it.
Lesley Mann, Chief Marketing and Distribution
Officer GBU Life
How to finance a home in the current increasing interest rate market?
There are several factors to consider when buying a home in an increasing rate environment. First and foremost, look at rates on a historical level and not just present day. Yes we have enjoyed record low interest rates over the last few years, but a rate in the 4s, 5s or even 6s is still an excellent interest rate. Secondly, consider a different product that can lower your rate like a 5/1 adjustable rate mortgage. An interest only loan can also be a great tool to keep your monthly payment manageable. If you are not putting 20% down on your home then consider alternate mortgage insurance options like financed mortgage insurance or lender paid mortgage insurance. Remember what does up will eventually come back down, so in an increasing rate environment know that this is temporary and use the other products available to you during this time.
Jerry Pounds, Senior Mortgage Banker
Citizens Bank-Home Mortgage