Thursday, November 16, 2017

Some Damn Good Financial Questions

I'm a financial planner — here are the 7 questions my richest clients ask

Do I really have enough?

No matter the size of their nest eggs, the rich worry about having enough money to get through old age while also leaving a legacy behind. They worry about the future costs of nursing home care, whether their life insurance policies are sufficient (and aligned with their financial goals), about inflation, and how the world might change in the next ten, twenty, or thirty years.

How do I preserve capital?

If you're young and an average earner, many financial professionals would advise you to dial up your level of risk — especially in the stock market — to help grow early wealth that will compound over time. But what if you're already rich? What if you've been working decades and want to continue growing wealth without putting too much on the line?

A lot of my clients think just as much about preserving capital as they do about growing it. They already know how to make money, but they worry endlessly over how to keep it.

In these cases, I help them preserve their cash with an array of financial products that can include high-interest savings accounts, municipal bonds, Treasury Inflation Protected Securities, and sometimes even annuities. Of course, the right strategy for every rich family is different and depends on an array of factors including their ages, how much wealth they have, and how long they need it to last.

(BusinessInsider.com)

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