You wouldn't build a house without a blueprint, but that's what too many people do with their finances, and it can easily turn out very wrong.
It could happen, I guess. If you got bad advice. But the idea is the same: It should be stable and dependable.
Next are your walls, made up of conservative investments. And then, of course, comes the roof, which is made up of your more moderate- and high-risk investments. The more effort you put into care and maintenance, the better off your financial house can be.
Still, this part of your financial portfolio may be the first to go when things get turbulent. Because the marketplace puts a priority on equities and people are taught to chase returns, all the money goes there, instead of into a well-laid-out portfolio. But you may experience less loss of your investment if you go with this approach.
And I have been telling my clients for years that when it comes Well designed plan investing, you win by not losing big. If you want to have a good, upstanding house with a strong foundation, sturdy walls and an adequate roof, you need financial advice and strategies that utilize a diversified portfolio.
Investing involves risk, including the potential loss of principal. Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.
He has passed the Series 65 exam and has insurance licenses in Texas, Louisiana, Mississippi and Alabama. He spent 22 years as a practicing CPA, then founded Roberts Wealth Management, a firm that focuses on estate preservation and retirement planning. Comments are suppressed in compliance with industry guidelines.