I think we can all agree that goals are likely best achieved by first creating a strategy. First, you must know where you want to go and then find the most successful route to get you there. It makes perfect sense, right? This is why you should understand the difference in Goal-Driven investing versus Product-Driven investing.
Some investment companies use products to sell their retirement strategies. Products are not focused on goals. Allow us to break this down so the differences are clear;
#1: How Does A Product Work?
Some investment companies put the product first and by advertising for products that look good on TV and in media. Everyone who is investing must ensure they are using a company they trust. The product may look quite good, but the product does what it does regardless of what the customer wants.
#2: How Does Goal-Driven Investing Work?
Goal-driven investing ensures the customer has their goals considered when they are investing, and they may speak to their advisor about reaching their goals. The company may have products that will serve the customer’s goals, and an advisor may share products with the customer that help them reach their goals. Goals are more important than products. It is in our opinion that Goal-Driven investing is the objective for each of our clients.
#3: How Do You Hone Your Goals?
The goals and objectives that you have should reflect a complete view of your financial picture. When you talk about your goals with an advisor you and the advisor should remember to take into account the effects of taxes, expenses and inflation are quite simple to share, and you will find it quite simple to offer information about yourself while speaking to your broker.
Product-driven investing is hardly a go-to system for those planning for retirement properly. At JEHM Wealth & Retirement we believe that retirement planning is much more than how much you have saved or where to invest. It is about added peace of mind and knowing that your retirement is protected. We believe core areas need to be addressed to help you succeed in retirement: an income plan, an investment plan, a tax plan, a health care plan, and an estate plan- at the very least. We focus on finding the gaps in your plan and assisting you with creating a complete retirement plan.