Sometimes All You Need Is A Fresh Look

This picture is not Golden, CO. It's actually 1,887 miles from my office, in Wimauma, FL. That's my 4 year year daughter Maggie and I relaxing at my in-laws pool yesterday afternoon. My family took an opportunity to enjoy a quickie 3-day break from spring in Colorado. Sorry about the glaring white tan lines. I definitely need more sun after the long winter.

We visit Florida about once a year, and each time I come here I end up leaving more relaxed. Although where I live is a quiet and peaceful place, there's something about a change of scenery that reinvigorates me. Perhaps breaking up the routine with a fresh perspective helps me stay focused. The same rationale can be tied to our finances. Every now and then you should take a step back, re-evaluate how you're doing things, take a small breather, and make any needed adjustments. Here are three ways to take a fresh look at your finances to help stay committed.

Overall Investment Design

Do you know of your overall percentage of stocks versus bonds in your investment accounts? It's not overly critical that you do. However, the clients I speak to that

regulary stay on top of their overall allocation tell me they feel more secure financially.

Knowing how much investment risk you're taking for an expected rate of return can provide long term planning clarity. The sample asset allocation on the right has an expected return around 6%. Knowing this information helps guide the decision regarding how much this investor should save each month. Aligning retirement contributions with a goal makes us feel on track. Feeling on track freshens our clarity and keeps us motivated.

Re-Evaluate Your Insurance

So far this year, I've asked a number of clients to take a closer look at their insurance policies. No one likes shopping for insurance, so don't! Instead of dealing with those annoying online quote systems where you hit a button and then 4 minutes later 30 agents call, outsource it. I don't believe a financial advisor should sell insurance (or anything for that matter). The alternative is to use an independent insurance broker that will work with your financial advisor to find the best product for you. This saves you time and headache.

Occassionally your life, disability, and long term care needs change. As your financial life evolves, so should the products you use to protect that financial life. Yes, there are some forms you'll have to fill out and possibly a medical exam you'll be required to complete. But, once underwriting is over you'll be able to implement an insurance product that's aligned with your financial plan. You'll also feel good you made the responsible decision to update things.

Hire An Advisor You Believe In

For the first time in my life, I hired a tax advisor. I know quite a bit about taxes, but the reality is I'm too conservative in my approach. Although the check for services was hard to part with, the total savings on my 2014 return will be in excess of $2,000. In addition to the $$$ I'll be keeping, I'm excited about future discussions about how my company files (C corp, S corp, LLC, etc). I can't say I've ever met someone excited about their tax situation, but at least I'm close.

There are a lot of different types of financial advisors out there. Finding one where you understand the investment design, insurance rationale, and compensation structure makes a big difference. Having confidence in the individual helping guide financial decisions is extremely refreshing. If you don't have a financial advisor, go interview one. No one said you have to hire them. I've read that most advisors provide at least marginal benefit, so chances are you'll be better off. If you have one but don't feel you're in alignment, go find a new one. The best financial advisors leave you confident and feeling in control, not feeling as if you just got "sold". When is the last time you felt on-top-of-it financially? If it's been a while, something needs to change.

Final Thoughts

Be inspired. Go do something outside your normal schedule. Don't go buy some shiny new widget to feel happy. Have an experience instead! A change of scenary and routine is all you need to feel refreshed!