Tag: Choosing an investment firm

Financial Guidance for Regular, Middle Class Investors

As major brokerage firms focus on the multi-millionaire and billionaire clients, the so-called “mom and pop” investor class, those that typically define themselves as “regular” or “middle class,” is getting less love.  Yet these are the people who are most in need of financial advice.

If you have, say, Donald Trump’s wealth, you really don’t need much advice on your saving rate… or advice on when to apply for Social Security.  You can be sure that Trump has a plan, but it’s not going to focus on retirement.

The middle class needs this.  But it’s hard to get unbiased investment and planning advice from the major Wall Street investment firms.  That’s where the growing ranks of Registered Investment Advisors (RIAs) come in.

In many cases RIAs are experienced financial consultants who don’t want to be employees of huge mega-banks pushing proprietary products.  They want to do the right thing for their clients; to act as fiduciaries.  They want to be able to give truly unbiased advice about the right investments for their clients, not rewarded by a big firm for selling in-house mutual funds or the deal of the day.

RIAs get to know you as individuals.  They have access to the latest technology.  Many are willing to create a financial plan for you without requiring you to turn your investments over to them.

If you hire them to manage your money they will often save you money by reviewing your estate plan, give advice on how to title your accounts, send tax information to your accountant, and make suggestions for passing your estate to your heirs with the least fuss.  All this as part of their over-all service.

If this sounds like something you would like to explore, check out our website, give us a call or come see us.  We’re conveniently located in North Suffolk behind the police and fire station on RT. 17.

What makes us different?

When most people think about investment firms with tens of thousands of “investment advisors” they think of people who call them up with recommendations to buy a stock or bond for their account.

But what’s the objective? What are you trying to accomplish? Will his recommendation take you closer to your goal, or farther away? What’s his motivation for the suggestion?

Think about getting on an airplane. You want to go the Phoenix. Does the pilot ask you what route you would prefer? How fast he should fly?  How about a detour to Minneapolis?  If he did, you would probably get off the plane. It’s his job to pick the best route in the shortest time and with the least risk.  That’s what you’re paying him for.  You want him to do the flying, you expect him to get you there without your input.

That’s what a real financial advisor does for you. He doesn’t suggest buying or selling stocks, bonds or mutual fund. He picks the best investments that will lead you to your goal and keeps you advised of your progress. He’s not selling investment products, he’s taking you to your destination in the best way possible.

At Korving & Company we ask you what your destination is, what your goals and dreams are and then put together a plan … and a portfolio that’s designed to get you there with the least risk in the time of your choosing.  We are Certified Financial Planners (CFP)™

That’s what makes us different from the Big Box stores. Check us out on the web.

Coins and Dollar Bills

The right time to invest?

time to invest

Is this the right time to invest?  Good question.

Here’s another good question:  when is the best time to plant a tree?
The answer:  “Now.”
Here’s a better answer:  “When you were a child.”

Time is our most precious resource.  A wasted moment is lost forever.  Trees take time to grow.  The same is true for wealth.

We are often asked “is this a good time to get into the market?”  The answer is that there is no better time.

Here’s why.

If you put your money in a savings account you might get about 1{030251e622a83165372097b752b1e1477acc3e16319689a4bdeb1497eb0fac93}.

At that interest rate it takes 70 years to turn $100 into $200.

If you could grow your money an average of 5{030251e622a83165372097b752b1e1477acc3e16319689a4bdeb1497eb0fac93} per year, that $100 would grow to $200 in 15 years.
If you can get 6{030251e622a83165372097b752b1e1477acc3e16319689a4bdeb1497eb0fac93}, it would take 12 years to grow to $200.
If you can get 7{030251e622a83165372097b752b1e1477acc3e16319689a4bdeb1497eb0fac93}, 11 years would get you to $200.
If you can get 8{030251e622a83165372097b752b1e1477acc3e16319689a4bdeb1497eb0fac93}, 10 years would get you to $200.

At 15{030251e622a83165372097b752b1e1477acc3e16319689a4bdeb1497eb0fac93} your money doubles every 5 years.

We are big advocates of people working hard for their money.  But we are just as insistent that money should work hard for them.  Why be a hard worker with lazy money?

Investing is one of those things that people put off.  But doing so wastes their most valuable resource:  time.

If you’re not happy with the way your money’s working for you, check out our website or give us a call.

No sales pitch, no pressure. Just good advice. That’s the reason we won the 2015 Suffolk Small Business of the Year award from the Hampton Roads Chamber of Commerce.

Do you have a Dusty Trust?

What’s a dusty trust, you may ask, or a dusty will? They are trusts and wills that are so old that you have to blow the dust off. It’s a term made up by David Richmond of Eaton Vance.

Many actually THINK they are speaking the truth. For them, the definition of estate planning is the will and trusts they set up at age 35 when their youngest kid was still in diapers. Doesn’t matter that they are now in their late 60s and have accumulated millions since those early hopeful days, including all sorts of treasures, especially the most precious ones … grandchildren

But it also applies to trusts and wills that are not very old. The estate tax laws have been changing almost every year for the last decade. That means that terms like “estate tax exemption” now have very different meanings than they did 10 years ago. It’s possible that you could accidentally disinherit your spouse unless you update your estate planning documents.

Beneficiary designations should also be reviewed regularly. I spoke with someone recently whose wife passed away earlier this year. He was forgetful, and his investment account still had his wife’s name on it. She was the beneficiary of his IRA as well as his life insurance policy. Her name was still on the deed to their home.

The role of a good Registered Investment Advisor (RIA) like Korving & Company is to review your estate plans and beneficiary designations, advising you about changes that you need to be aware of. Whether its changes in the tax laws or changes in your personal life, keeping you updated will keep your heirs from inheriting a tangled mess.

For more information, get a copy of our estate planning guide: Before I Go.

©  Korving & Company, LLC

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