Confident Wealth

It's About Confidence

A financial planner is responsible for understanding the responsibilities of the client and being responsive to his concerns. Moreover, he also needs to reassure an investor and restore confidence in turbulent times—because, whether we want them or not, the hard times WILL come. Listen as Pete shares with listeners the nuances of a client-financial planner relationship and the need to restore one’s confidence as an investor.

Show Notes:

  • Brothers Bill and Pete Bush from Horizon Financial Group will give us tips to build, grow and maintain confidence in our financial lives
  • When it comes to one’s wealth, everyone wants to be waking up feeling good, free of anxiety and truly confident

o     Market conditions or a family situation are factors that can shake an investor’s confidence

  • Confidence is a superpower; an individual lacking in confidence will sit on cash and avoid making investments

o     Confidence is the underlying emotion that gives you the power to make PROGRESS

  • Objective of a financial advisor is to earn enough to meet the requirements of the client; solely concentrating on rate of returns and market comparisons is meaningless
  • Indulging in some self-introspection made Paul realize that he really enjoyed making people feel confident

o     Simon Sinek’s Start with Why: How Great Leaders Inspire Everyone to Take Action urges you to discover your WHY

  • The result of eliminating FEAR is that you become MORE confident

o     There are many things that can affect your confidence; so, you have got to protect it

  • What the financial services industries has been doing wrong….

o     Human beings are emotional creatures; they feel first and then go and look for reasons to back up their feelings

o     Industry bombards investors with logic and ignores the emotion; need to unpack fear before moving forward

o     Lot of financial salesmen are solely bothered about making a sale; they completely disregard client requirements

  • Successful investing is incredibly boring; do not chase shiny investment instruments, stick to those that have stood the test of time
  • To build confidence, you need to commit to a course of action by unpacking your financial goals

o     Take inventory of your assets, how you can invest and your financial program at work to set the ball rolling

o     Move on to Step Two where you need to determine the income that you need to reach your goal

o     A large population of people fail to let go off their inertia which necessitates the need for a financial planner

o     Remember that you might have to make some unpleasant changes; might have to earn more and spend less to reach your targeted savings

o     Push through so that you can start seeing results; knowing where you are in relation to where you should be in order to get to where you want to go will help you build your confidence

  • Investors are highly reluctant to trust a financial computer model or algorithm; much more comfortable taking advice from financial advisors, friends or family
  • Remember to take advice from a certified financial planner (CFP)

o     While the questions you ask an advisor are important, the questions they ask you are even more telling

o     A good financial advisor asks personal questions through which he can gauge your responsibilities; this has a big impact on financial planning

  • All emotions: fear, excitement and confidence are transient, it’s impossible to be absolutely confident all the time

o     Sometimes a financial planner will have to RESTORE confidence

o     A 20-30% correction often tends to shake up an investor’s confidence; personal circumstances, like going through a divorce or moving to another city, also makes a huge impact

  • Financial advice and planning is much more than pouring over investments, talking estate planning and taxes—it is about discussing the concerns which got them to a financial planner in the first place
  • Have a SCORECARD which helps you accurately gauge your financial position
  • Everyone at Horizon Financial wants to help people lead more confident lives
  • Check out our website to know more about our team and our various services

3 Key Points:

  1. Human beings are emotional creatures—the financial industry needs to understanding the emotions of the investor, which mainly involves unpacking their fear before moving forward.
  2. You might have to make some difficult changes like earning more and spending less in order to reach your financial goal—push through so that you can start seeing results.
  3. All emotions: fear, excitement and confidence are transient. It’s impossible to be absolutely confident all the time, so it’s the job of the financial planner to restore the confidence of his clients.