A Late Night Meeting

Recently my work has taken me to western Minnesota, and most of the appointments have been at night. Last night was an interesting appointment with a couple who had a long time close family friend as their financial advisor. This created an awkward moment when I noted that at their ages, 66 and 67, they were 100% positioned in aggressive growth mutual funds, individual tech stocks, and mutual funds focusing on ‘pacific rim’ growth.

After asking for permission to show them how I would handle things differently, and exposing them to some industry standards on risk management and age-driven risk tolerance theory, they quickly became alarmed, given their only other assets were social security.

The advisor in the center of the discussion had grown their portfolios, but over the last two to three years had not contacted them. I pointed out they needed to concentrate on securing their funds and prepare them for income distribution.

They said their friend/advisor had never mentioned that to them. EVER.

To be continued.

November 22nd, 2013 by Scheiber & Associates