Following a lengthy and successful career at Exxon Mobil, I joined Investec almost ten years ago. People wonder why I didn't simply retire. One answer is that I believe many people can benefit from professional wealth management.
Here are four reasons on which I base my belief.
1) Dreams are worth pursuing.
In a recent blog, I've written about how financial planning should build on a foundation of what's most important to the client. People don't necessarily know what their goals are, and thinking about what's most important takes time to articulate. Search your soul—what stirs you, what excites you, what intrigues you? These are the goals that a plan can help you realize. As Charles Schwab says, "Own Your Tomorrow." Yeah, that's a little cheesy. But how much better is a life lived in pursuit of dreams than one which never dreamed at all? Financial plans can turn hazy ideas into a series of concrete, actionable steps and a timeline for achieving them.
2) People should take control of their destiny.
We all know people whose lives ricochet from one crisis to another. Life shouldn't be that hard. Maybe it's more aspirational than realistic, but one can hope that with some guidance, people can avoid leading a life of reacting to circumstances, and begin to make plans for a life of purpose. We should be able to resist being victimized. Save for a rainy day. Prepare for the unexpected. Advisors remind us we need to plan.
3) Wealth, like time and talent, shouldn't be squandered.
Approach it from a religious perspective or as a practical matter. Make wise decisions about your financial resources, and be a good steward of what you have. That means implementing a host of good financial habits such as investing wisely, following a budget, and evaluating risks. These are the wealth equivalents of daily practices our mothers tried to instill, like flossing daily, getting exercise, and eating a balanced diet. However, many of us never learned how to apply good financial habits in our daily lives. We can benefit from an objective professional's oversight and help in becoming a better steward of our wealth.
4) Avoid the big mistakes.
Some of the saddest stories I know are of people who inadvertently made a "big mistake." They didn't know better. They thought they understood something, but they were wrong. More likely, they didn't know what they didn't know. Personal finance isn't rocket science, but unless you are knowledgeable, it's possible to make a few big mistakes that uproot those three objectives cited above. Engaging with a trusted and knowledgeable advisor can help you or your loved ones avoid making the big mistake.
Whether you choose to work with Investec or someone else, the point here is to recognize that most of us aren't wired to do effective wealth management by ourselves. Our brains take short cuts that are wrong, we pay too much attention to recent headlines, and we fear losses twice as intensely as we enjoy gains. The list can go on.
Consider the benefits of working with someone whose objective is to help you pursue your dreams, make plans for your future, use your wealth wisely, and avoid big mistakes.
Disclaimer: The information provided here is general and intended as educational in nature. It is not intended nor should it be considered as tax, accounting, or legal advice. Investec Wealth Strategies and its advisors do not provide tax, accounting, or legal advice. We recommend you seek the counsel of your attorney, accountant or other qualified tax advisor concerning your situation.