How to Love Your CFP

Brian Watson, CFP

Showing love and appreciation for family and friends is a normal occurrence around Valentine's Day. But what about the business advisors in your life? How do you show them appreciation?  Obviously saying thank you is one way. If you have an advisor in your life who has really helped you, let them know.

One idea is to write them a note saying how they've helped you. Aside from the obvious financial help, how have they made a difference in your life? Do you feel more comfortable about your financial security? Do you worry less than you used to? Do you feel like you understand your situation better than you did in the past? Did your advisor simplify what may seem like a complex subject for you? Has the advisor relieved you of feeling the pressure of making financial decisions alone? Have you been able to plan ahead for sending children to college? Do you feel like you are on track for retiring at a certain age? Have you implemented an estate plan to ensure your wealth ends up with those you care about instead of the government? 

Any professional who works with people hears when things go wrong more often than when they go right. When people are unhappy, the advisor is often made aware, and this may feel like they only hear about the problems. Letting your advisor know that they have truly helped you will make them feel that their hard work is making a difference in people's lives. 

Financial Q&A

"If I were to get $400,000 for my $1 million lottery paid over 30 years, could I invest it and make more than the $1 million?"  Josh R., Carmel, CA

This is a great question. The answer depends on how you invest the money. The Rule of 72 comes to mind. The rule gives you an approximate time frame of how long it would take money to double at a certain rate of return. For example, bonds have historically had a long term rate of return of around 5 percent. Take 72 and divide by 5 and you get about 14 years. Stocks have historically had a long-term rate of return of around 10 percent. Take 72 and divide by 10 and you get about 7 years. An investment that returns 8 percent over time would double every 9 years, etc.

It all comes back to having a properly diversified asset allocation. Depending on whether you invest 100 percent in bonds, 100 percent in stocks, or somewhere in between, the Rule of 72 will give you an idea of how often money will double at a certain rate of return.

Brian Watson, CFP
Koss Olinger Financial Group
2700-A NW 43rd St
Gainesville, FL 32606
(352) 373-3337
brianw@kofinancial.com

Securities Offered Through ValMark Securities, Inc. Member NASD/SIPC.  ValMark and Koss Olinger are separate entities.

Advisory Services offered through Koss-Olinger Consulting, Inc., An SEC Registered Investment Advisor
2700-A N.W. 43rd Street, Gainesville, Florida 32606
(352) 373-3337 Fax: (352) 373-1864 (800) 373-3302 Toll Free

Prosperity Partners, Inc.
www.prosperitypartners.com
800-868-6230
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