Last Thanksgiving, a client emailed me, asking to transfer funds to another account of hers—electronically. But we can’t do that by email. So, I let her know I’d need to call her.
A client told me he had recently changed jobs and asked if I would roll over his 401(k)—into an existing Roth account. I asked if he knew whether his original 401(k) had been a traditional, or a Roth. Was he sure?
A family client of mine, led by an 82-year old widow and grandmother, gave me an opportunity to really reach out beyond just business. Over time, I grew to know the family and this lady rather well, and had come to appreciate our conversations.
Dalton — What’s your number? I know you’ve thought about it—the size of the investment portfolio you’ll need to feel comfortable retiring. According to a recent Charles Schwab survey of 1,000 401(k) plan participants nationwide, the number is $1.7 million.
Dalton — We financial advisors are supposed to be smarter than individual investors when it comes to placing cash in, and taking cash out of, investments. Envestnet tracked where 96,000 financial advisors moved into and out of for the first four months of 2019, after the crash of December 2018.
Dalton — The stock market has been on fire for the first half of the year. Can we keep that fire stoked? I am constructive on the market’s prospects for the rest of the year. Of course, for me, the worrywart that I am, that doesn’t mean I necessarily expect double-digit gains in the major stock indices before we hit 2020. We may; we very well may. But for me, I’m all about risk management. It’s about keeping that fire burning, but at the same time not letting it get out of control.
Dalton — Your husband has a kept woman. And it’s you. Kept in the dark, that is. According to a UBS study, “women put financial security at risk by deferring long-term financial decisions to spouses.” Let’s face it: Most financial advisors are old white dudes (OWDs) like me, and old white dudes often don’t like to falter from traditional gender roles. OWDs are not comfortable with change, like involving the matriarch in the conversation. About half of financial advisors are over 50 years old, most are male, and nearly one-third of all financial advisors are projected to retire in the next 10...read more