The Anchor Bay Capital Motto: “Be Prepared”

July 9th, 2019 by Jim Allen

Ok, so I stole this from the Boy Scouts. But, as a father of an Eagle Scout, a former scout leader and Boy Scout myself, I figured it isn’t a big deal to appropriate their slogan. Plus, it certainly applies to the world of financial planning.

Part of “Being Prepared” was to make sure you that always took “The Ten Essentials” on any outdoor outing. The ten essentials (fire, shelter, water, food, illumination, navigation, first aid etc.) helped you be prepared for anything that might happen out in the wild like getting lost or injured. We always checked with each scout to make sure they had the ten essentials with them prior to leaving for any outdoor activity.

So, what the heck does this have to do with financial planning? Well, there are events that might occur during your financial life that are the equivalent of getting lost or badly injured while out on a backpack trip or hike. For example, studies have shown that most people end up retired on average 4 years earlier than expected. Sometimes this is because they are financially able to, but often it is because of an unexpected layoff, disability, or a health event. Other examples of these unexpected risks are pre-mature death, large market corrections, unexpected inflation or the need for long-term care. Since we act as a fiduciary in all our client relationships, we must make sure that our clients are prepared for these risks should they occur. So, part of our financial planning process is to go through your financial “10 essentials” to make sure you are ready should any of these financial risks happen.

Below are some of the financial essentials that most clients need to have:

• Cash reserves for emergencies
• Appropriate property & casualty insurance
• Appropriate life, health and disability insurance
• Tax diversification
• Up to date estate documents and beneficiary designations
• A well-designed long-term care plan
• Growth investments for longevity and inflation protection
• Liquid investments with limited volatility for unexpected spending needs

Everyone’s financial essentials may be different depending on your age, employment status, overall health and other considerations. However, regardless of your individual situation, you always need to “Be Prepared” for whatever life is going to throw your way. Our job as your financial advisor is to help get and keep you “prepared” for life. If you are interested in a complimentary “preparedness analysis”, please contact us to schedule an appointment.