I think we can all agree that goals are likely best achieved by first creating a strategy. First, you must know where you want to go and then find the most successful route to get you there. It makes perfect sense, right? This is why you should understand the difference in goal-driven investing versus product-driven investing.
Some investment companies use products to sell their retirement strategies. Products are not focused on goals. Allow us to break this down so the differences are clear:
1. How Does a Product Work?
Some investment companies put the product first by advertising products that look good on TV and in media. The product may look great, but the product does what it does regardless of what the customer wants. It’s important for anyone who is investing to ensure they are using a company they trust.
2. How Does Goal-Driven Investing Work?
Goal-driven investing ensures the customer has their goals considered when they are investing and that they may speak to their advisor about pursuing those goals. The company may have products that will align with the customer’s goals, which are considered more important than products, and an advisor may share products with the customer that they feel best fits their needs. It is in our opinion that goal-driven investing should be the objective for each of our clients.
3. How Do You Hone Your Goals?
Your goals and objectives should reflect a complete view of your financial picture. When you talk about your goals with an advisor, you and the advisor should remember to take into account the effects of taxes, expenses, and inflation. You should find it simple to offer information about yourself when speaking to your broker.
Product-driven investing is hardly a go-to system for those properly planning for retirement. At Preservation Financial Group, we believe that retirement planning is much more than how much you have saved or where to invest. It is about added peace of mind and knowing that your retirement is planned.
We believe at least 5 core areas need to be addressed to help you succeed in retirement: an income plan, an investment plan, a tax plan, a health care plan, and an estate plan. We focus on finding the gaps in your plan and assisting you with creating a complete retirement plan.