One of the issues we address regularly at R&R Financial Advisors is the issue of direction, or more pointedly, the lack of direction! Small business owners know they should be going somewhere financially, that their portfolio should be taking them there, but they are often unsure how to make that happen. If this sounds like your situation, consider these three essential steps to help establish purpose and direction in your investing.
First, identify your values!
Seems simple. But you would be surprised how many people begin with other things. Successful investing and planning start with visualizing the destination at which you want
to arrive. It involves getting in touch with your values, goals, dreams, and priorities. This is how you cast a vision for the future and set the shape you want life to take. For example, is travel important to you, or is purchasing a house in your near future? What about college planning or leaving a legacy? What is important to you? This step gives meaning, purpose, and direction to your financial picture and to your life!
Secondly, determine your results!
With your destination firmly in mind, you should be able to determine what results you need from your investing. One question that helps to focus this step is, “What do I need my money to do for me?” The importance of this question is that it leads you to consider issues like growth, risk, and liquidity. Do I need my money to be quickly accessible? Do I have time to let it grow? Is losing it a big concern? Determining your results will force you to be aware of obstacles and challenges that need to be overcome. This is where planning becomes very personal. Determining the results needed is done in the context of your goals, priorities, and values. The results you want are shaped by your destination.
Thirdly, choose your tools!
Sadly, this is where most people start. Imagine if you entered a building contest and had to select the tools you would use before knowing what you would be required to build? You might be able to make some educated guesses but knowing the project ahead of time would ensure better choices. Tools are important, but tools are only a means to an end. They are used to help us get the results we need based on the values we have identified.
At R&R Financial Advisors, we are helping small business owners create direction by aligning their values, priorities, and goals with their financial choices.
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Investment advisory services offered through Brookstone Wealth Advisors, LLC (BWA), a registered investment advisor. BWA and Brookstone Capital Management, LLC are affiliated companies. BWA and R&R Financial Advisors, LLC are independent of each other. Insurance products and services are not offered through BWA but are offered and sold through individually licensed and appointed agents.
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