Are you prepared for a financial storm? We explain what to do and why a financial advisor is so important in helping you weather tough conditions when the forecast gets dark.
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Too often, people react and don’t plan for financial storms properly. When you’re in the middle of a tough situation, it can feel like it’s never going to end. But that’s why we diversify and don’t put all of our eggs in one basket.
On today’s episode, we talk about financial forecasting and why it’s important to have a trusted financial advisor. First up, let’s talk about diversification.
“Whenever you diversify and spread out the risk, you’re always going to be underperforming in some area of the market or the economy that’s hot, and right now that’s tech stocks,” said Don. “But the upside to diversifying is you’re not as likely to get hammered when the market takes a turn.”
Right now, hot stocks include Facebook, Apple, Netflix, Amazon, Microsoft, Google and Tesla. Some of those stocks are trading at more than 100 times their earnings. Tesla, for example, has quadrupled in price since the end of March.
Before you take any action on your financial forecast, it’s always best to talk with a professional. Speaking of professionals, should financial advisors help you with things like social security, life insurance and legacy planning? Don answers that question. Listen to the entire episode or click on the timestamps below to skip ahead to a specific segment
5:35 – We react and don’t plan for financial storms
7:30 – Positives and negatives of diversification
9:07 – Hot stocks
10:02 – Tesla
13:54 – Mailbag: Should financial advisor help with social security, life insurance and legacy planning?
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Donald W. Cash – CPA, CFP® is an independent advisor. Don began his career in 1985 as an accountant after graduating Rutgers University. In 1990 he entered the field of Estate Planning with a concentration in long term care planning. Don has been advising clients in the baby boomer and retirement market for 20 years. He has helped over 1,000 families with their planning needs. He advocates a holistic approach to Estate and Financial Planning as has relationships with other professionals including Attorneys, CPA’s, Mortgage Specialists, Insurance Specialists and Asset Managers. Don is married to Cathy and have 4 children, Carly, DJ, Nick and Tori. They live in Freehold, NJ.