The Full Financial Framework

Full Circle

There is tremendous wisdom in having a financial framework to guide your perspective as an investor. Most likely, you’ve understood early in life that if you were going to meet my goals and create the life you wanted for my family, you needed to prepare for the certainty of uncertainty. That’s why you’re still reading this: you know you need tools as an investor.

To begin, you need a philosophy for why it’s better to be proactive instead of reactive when it comes to life and investing. We call that the Smart Money Philosophy.

The road toward financial independence has its fair share of dangers and risks. It can often seem like a long, winding road with hazards right around the next bend:

• • • College costs more than expected. It already costs a lot more than when we were kids in college.
    • Your kids all inherited your crooked teeth— and all need braces before turning 12. • Your business partner steals your company and your client list.
    • Your dad passes away unexpectedly and your mom moves in with you because she can’t afford to live anywhere else.
    • You suffer a serious accident that leaves you paralyzed from the waist down at age 56.

We reverse the typical way of thinking through issues:

• • • What are you doing?
    • What are you feeling?
    • What are you thinking?

Rather than put yourself in the task of acting then justifying with logic, we do just the opposite.

• • • What are you thinking?
    • What are you feeling?
    • What are you doing?

Think of your own life. Who are the people in your Full Circle?

• • • Your immediate family;
    • Your parents or extended family;
    • Your close friends;
    • Other advisors and financial professionals (CPA, insurance agent, etc.);
    • Your business experts (attorney, business coach, mentor, etc.);
    • Your employees, colleagues, or co-workers

Full Fit

My son John got married a few years ago to a wonderful young lady who my wife and I adore. While planning for their wedding, John chose not to have his groomsmen rent tuxedos or suits. No, each groomsmen purchased a beautiful matching gray suit that was then tailored to their exact body. The effect was outstanding as each groomsman stood proud and confident, not pulling at their neckties or itching uncomfortably in a one-size-fits-most type of tuxedo. Everyone looked great and we had a wonderful time celebrating a bright future together. That’s the effect of a great tailored experience, and it’s an effect every investor deserves to have if they’re wanting to create a better financial future.

Thankfully, that’s when I saw the opportunity: what if I approached every client’s portfolio with the same interest and care that I would expect if the tables were turned? What if I presented my advice as if I were seeking the best advice possible for my own portfolio and well-being? What would be the response if my behavior as an investment advisor put the client’s goals, aspirations, and best interests first in all things? That’s what I wanted as a client and that’s what my clients deserve. That’s what it means to be a “fiduciary”

Full Future

Practically speaking, we need a roadmap, a plan as it were, on what to do next to best prepare for the certainty of uncertainty. Where do you invest? How do you invest? What different types of investments may have the best probability? That approach is what we call the Full Financial Framework. It’s the ‘how to’ linked to the ‘why to’ of the Smart Money Philosophy. We already covered the first two parts of the Full Financial Framework: Full Circle, and Full Fit. Your Full Circle is the area of influence in your life, sometimes referred to as your life circle, that holds what matters the most to you and who matters the most to you. Your values, dreams, goals, and priorities are all supposed to be inside your Full Circle. Those may change over the years, but as long as you keep a good pulse on what matters and why it matters, your circle will truly stay full and healthy. The same is true of the relationships inside your circle. The healthier and more cherished those relationships are, the fuller your life circle can be. That’s why we call this part your Full Circle: life isn’t meant to be just survived.

You can thrive with dreams, goals, and great people cheering you along the way toward your benchmarks of success. With a Full Circle intact and a great support system in place, you can focus on finding the right financial advisor that’s a great fit for your financial needs. It’s all about the fit – personality type, values alignment, experience, approach to financial planning – even great people can be a mismatch if enough factors are out of alignment. There’s no shame in recognizing if something isn’t the right fit. In that moment though, you have a choice: stay stuck in a slightly uncomfortable, maybe even ‘okay but not great’ relationship with your financial advisor, or take the time to get out of a poor fit and find the exact fit you need. It’s best to get out of a bad relationship sooner rather than later so you have more time to find the right relationship and experience for the future. Full Fit is just as much a two-way street as any other financial decision because your financial advisor needs to be evaluating you as well through the process.

Are you the type of investor who will truly take good advice? If I, as your financial advisor, give you my fiduciary-driven advice, advice shared in full support of what’s best for you, and you reject that advice based on some arbitrary feeling or mood swing, we’re not the right fit.