EVERYONE HAS A PLAN UNTIL THEY GET PUNCHED IN THE FACE
Mike Tyson is famous as a fearsome boxer who once bit off the ear of an opponent. He is by no means a literary figure; but he got something right in his most well-known quotation. It is easy to plan for the routine eventualities of life; but sometimes life does punch us in the face, and our plans go awry.
At Baskin Wealth Management we are integral to the financial affairs of well over 1,000 families. We see our clients at their best and at their worst, at their times of triumph and their moments of disaster. After doing this work for over thirty years, I can tell you without fear of contradiction: when tragedy looms, you will not want a robot answering your call. You will want to speak to a human being who knows you, who knows your family and who can provide help in your time of need. True financial stewardship, which is what we do, is about so much more than buying and selling securities. It is about being the calm presence who can offer some measure of comfort and reassurance, and help build a bridge back to a path that seems to have been obliterated by an unexpected turn of events.
In the past few years, our clients have called us for all of the following:
- An “out of the blue” late-life marriage breakdown which threw retirement plans into disarray, requiring an entirely new financial plan based on new facts.
- A devastating diagnosis of early onset dementia which upset all the assumptions that had gone into a family’s long-term strategy.
- The realization that a child’s issues were really a manifestation of bipolar disorder which would not get better, and which would require long-term financial assistance from parents.
- The sudden death of a spouse, resulting in the sale of the family home, liquidation of a business and realignment of future goals.
Each of these events is a part of life, but we kid ourselves that they will be a part of someone else’s life, until we get punched in the face. As Mike Tyson said, your old plan has gone out the window and you need a new one.
As the investment industry has changed, our firm has changed as well. Recognizing that we need to deepen and broaden the services we can offer to our client, we are putting more emphasis on financial planning and stewardship. We now have two professionals who are certified in financial planning. We expect to increase this number in coming years because we know that is what our clients need, whether they know it or not. Issues of taxation, inter-generational transfer of assets, interaction of numerous government programs and increasing life expectancy have made financial life ever more complex. Most families will need professional help to make sure they are optimizing their future, which will depend on their own unique situation.
I am sure you have seen the ads on television making the argument that a fee paid to a financial advisor is simply money thrown away. You can do it yourself! Look at that smooth curve calmly rising up and to the right, year after year! If only markets were that easy; if only life was that simple.
We insist on having an annual portfolio review with every client because what we do depends on who you are; and who you are changes over time, sometimes very gradually and sometimes suddenly and unexpectedly. As circumstances change, we need to be able to change how we invest for you, and this needs to be based on current and accurate information. Your portfolio manager would be happy to set up a financial planning meeting for you. No need to wait until you get hit in the face.
David Baskin
Chairman
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