Financial Pointers for High Net Worth Investors

Financial Pointers for High Net Worth Investors

by | Nov 16, 2020


Hello and thank you for stopping by today we are going to talk about pointers for high net worth investors.

My name is Tina Anders. I am the Fee Only fiduciary Certified Financial Planner for my firm located here in Petaluma, California, Anders wealth management. Serving primarily Napa, Marin and Sonoma counties. I am going to talk about pointers for high net worth investors, again thanks for stopping by.

So, keep saving, don’t spend all of your investment returns. You know this. Save wisely and invest wisely. You can focus on increasing your cash inflows, as well as reducing your cash outflows, thus increasing your overall wealth. While you, as a high net worth investor, may not think of yourself as a saver or someone that needs to save, you know that living below your means will allow you to achieve and maintain your desired level of wealth in a shorter amount of time.

Point number two, invest not only in United States but also in the European Union and also emerging markets. Developed countries, such as the United States and the European Union are thought to offer the most investment security, but look beyond your borders to frontier and emerging markets. Some of the top countries that the ultra wealthy are investing in are Singapore, Chile and Indonesia. Of course individual high net worth clientele, you need to do your research to make sure that these countries (or let me do it) to make sure these countries fit into your overall investment strategy and your portfolio.

Pointer number three, don’t worry about keeping up with the Joneses. Now, I know you know this cognitively but do you really know it? Many smaller investors are looking at what their peers are doing. And they try to match or beat their investment strategies. However, not getting caught up in this type of competition is critical to building personal wealth. You, a high net worth investor, know this and you should establish personal investment goals and long term investment strategies before making decisions about your investments. High net worth investors envision where they want to be in 10 years 20 years and beyond especially considering their errors. You need to adhere to an investment strategy that will get you there. Instead of trying to chase the competition or becoming frightened of the inevitable, the inevitable economic downturn, stay the course with a strong, stable portfolio.

Next pointer, have your portfolio designed for a reliable stream of income, stability, and growth. I want to just make a note here, annuities are not necessarily the best way to do this. Although a lot of people turn to annuities for reliable streams of income. There are ways to structure your portfolio for long term growth while providing a reliable and predictable income stream each year. I do this for my clients all the time. I have structured portfolios to 2008; not one client had to adjust their lifestyle. I have structured portfolios to deal with the current Covid situation. Clients are not having to adjust their lifestyle. There are ways of structuring portfolios to provide reliable and predictable income each year, no matter what’s going on in the markets.

Next pointer, rebalance your portfolio. What does that mean? I’ve talked about it in another video and I want to just cap on it right here. So, rebalancing, if you have a portfolio that is say 50% bonds and 50% stocks. Well, if stocks go up, that means the value of the stocks is higher now than 50% of the portfolio. So, you might be sitting at a 60% stocks, 40% bonds, or even more extreme than that. So, you want to rebalance back to your 50/50 if in fact, that’s your allocation. Rebalancing regularly is very important for your portfolio and for your long term stream of income and your long term wealth. You want to remain diversified, adequately diversified. You want to remain properly diversified. Even if some investors have specific allocation goals. These are high net worth people as well as not high net worth people. They often don’t keep to the rebalancing and they allow their portfolios to skew too far one way or the other. So, rebalancing is very important. A balanced portfolio typically includes the right mix of cash, stocks and bonds based on your age, your risk tolerance, your comfort zone and other factors that we would consider and that you need to consider when allocating your portfolio. For the ultra wealthy rebalancing is a necessity.

Work with a fee only fiduciary Certified Financial Planner to help you achieve your goals by staying on track.

Thank you for stopping by today. If you have comments, please do so below, including comments about the video, comments about questions that you might have for me, and or topics of interest for future videos. Happy to accommodate you. Tina Anders Anderswealth.com. Thanks again for stopping by, in your corner always.

Questions To Ask a Financial Planner – Part One

Questions To Ask a Financial Planner – Part One

by | Jul 20, 2020


Hi there and thank you for stopping by today. Today where I am going to talk with you about questions that you might consider asking a potential financial advisor before you sign on with this person. My name is Tina Anders. I am the owner and founder and certified financial planner for Anders Wealth Management located in Petaluma, California serving Sonoma and Marin counties and the greater area.

Today, I am going to talk with you about questions that you might consider asking a potential financial advisor before you sign on with this person.

The first question that I would ask a potential financial adviser is, are you a certified financial planner? And if the answer is yes, that’s great. If the answer is no, find out why. Because a certified financial planner has to take a minimum… well, they have to take 30 continuing education units, excuse me, every two years. Most certified financial planners that I know take well above 30 units per two years because there is so much information out there. And we have to stay abreast of it so that we can advise our clients the best possible way that we can.

Secondly, about a certified financial planner, there are 10 hours of exams to become a certified financial planner that must be passed. And so in order to pass those exams, there’s a lot of knowledge that needs to go in to preparing for the exams.

And thirdly, there’s a there’s an experience element. A certified financial planner needs to have experience in the industry in order to be certified.

So, those are just three good reasons to hire a certified financial planner versus somebody who’s not. Another question that you might ask is, are you fee only? Are you fee based? Do you work for a large brokerage firm? You’ll already know that when you talk to them.

There’s a difference between a fee only financial planner and a fee based financial planner or somebody who’s not fee related or oriented. And there those are these: a fee only advisor has taken a fiduciary oath to advise in your best interest. And so what that means is, she or he will not have any conflicts of interest when it comes to selling you things. To get advice in your best interest, you need somebody to be objective. If I’m getting kickbacks, commissions, incentives of any kind to recommend a certain investment product to you, or a certain insurance product to you. Perhaps and I’m not insinuating that people are not ethical, but perhaps there is in fact a conflict of interest there. Perhaps I will offer you something that could be helpful to you, but may not be the best advice for you, best product for you. And perhaps I’m looking at not only your situation, but my financial situation and thinking, how can we both benefit from my advice versus just you the client who is paying me?

So fee only, no sales, no commissions, no kickbacks. Fee based, yes there’s a fee for usually financial planning, but then there are sales on top of that. Sales in regards to products to invest in or products to buy for insurance purposes, annuities, things of that nature.

And then there are stockbrokers and other people who call themselves, financial advisors, probably conflicts of interest. So, just be aware of the fee only versus fee based versus neither of those and just know what you’re looking at and ask those questions. It’s important that you find out what you’re dealing with, no surprises.

Tune into Part Two for questions to ask a potential financial planner. Thanks again for stopping by, I appreciate you listening in. Comment below with any questions, comments, or if you have any topics you would like me to discuss in the future, I will try to put a video out for you. Thanks again. I am in your corner.