The foundation of a functional financial plan is the understanding of the goals of the client. Beyond “Your Number” it important to uncover what money represents to each client. Our profiling process often reveals a value systems that a simple questionnaire will not capture. For example, acquiring a vacation home is often listed as a goal. However, the home can represent, the opportunity to travel on a consistent basis, a gathering place for a family or others, or even the ability to access activities outside of their local area.
From a profiling perspective, its important to understand risk tolerance. Risk has many definitions and meaning so its our responsibility to understanding what that means to each client. We typically find clients benefit by understanding the fundamental principals of investing and capital markets. Both help them understand their financial plan and ultimately their investments better which leads to longer investment periods.