It is a question many ask themselves, “should I do my own investing?” Some do-it-yourself investors have a knack for picking the winners. Just like home improvement you can be quite successful at the task but find the constant responsibility of the job taxing. No pun intended!
There are a number of analogies, such as the surgeon who doesn’t do his own surgery. There are also those who say no one cares more about me than me. But what happens when you can no longer do the important portfolio management for the family? Who takes over? Do you have a succession plan in place?
The business owner who doesn’t have a back-up plan can leave a family in a financial predicament. Do you have a successor who can do the job for you when you can no longer do so? Do they have the same talent and capability?
A change in circumstances can happen quickly while the transition for a person may move at a slower pace. Meanwhile the stress of finances can mount. A surviving spouse or family member may feel overwhelmed with the responsibility and obligation.
Like a business owner you may want to train your successor while you are physically and mentally capable, to prepare them in the event of your inability to do so. Consider educating them on your philosophy, goals, strategies, and monitoring techniques. Here are a couple of areas you may want to discuss. Clearly it is not all inclusive but may be a start to your framework of a training schedule for your successor.
1. Determine your investment philosophy
- Risk tolerance
2. Decide on a goal for your investments
- Income via dividends
- Expected rate of return
- Tax efficiencies
3. Identify your investment strategy
- Buy and hold
- Value investing
- Diversification and diversification model
- Where you get your research and information
4. Outline techniques for monitoring your investments
- Frequency of review
- Ongoing research
And finally, remember to let them know where to find your account IDs and passwords! Should it be a non-account holder there may be a freeze on the account until the estate settlement process is completed.
If you are looking for a financial advisor to help your successor, please tuck our information into your files or add step 5 -
5. Call Affinity Wealth Advisory Group if you don’t want to take over.
We are happy to help your family continue your legacy when you are no longer able. Do you know someone tired of doing it themselves? We would appreciate the referral to help them transition to their DIY retirement. Call us now at 602.923.9800.
Together, we can work to keep you on-track towards your financial goals. Request a consultation with us to learn more.
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