A number of years ago I had a prospective client, Kay, ask me if I was more aggressive or conservative in my advice – a question I’m often asked. I politely turned it around to her, and asked, “Are you aggressive or conservative?” Kay had never really invested before, was very shrewd about saving, and didn’t commonly withdraw from the account. I told her that if she wanted to continue on the retirement path she began a long time ago, we would present her with a relatively conservative plan.
There is no standard retirement formula that works for everyone. If a financial professional has a set answer for the question of whether they are aggressive or conservative, walk out of their office. The answer must be relative and personal. If you’ve never invested a dime in your life, even investing in McDonald’s, Microsoft, or Apple are more aggressive moves in comparison to just putting your money in your bank account.
With knowledge comes confidence, and as such, I sometimes tell clients that retirement is a time where a little branching out, both socially and financially, may be a good thing. On the other hand, when we’re conservative, we’re comforted by what we know and what we understand.
It’s a question that bears thinking about during the planning process, and I’d recommend not letting an investment professional make the decision for you. If you’re trying to figure out whether your financial situation calls for a more conservative or a more aggressive approach, consider questions such as whether or not you’ll have other income sources during retirement.
Once you have thought about your situation for yourself, you’ll less likely be persuaded to accept something that isn’t for you when given financial advice. But more importantly, you’ll be conscious of choosing someone who is willing to take a personal approach to your finances, who thinks of you as a person, and is willing to learn about your unique situation – not plug you into a standard retirement formula.
Schedule an in office or over the phone consultation to discuss how Miramontes Capital can help you with your new beginning through retirement planning.