Financial Empowerment 5

Make a resolution this year to improve your financial health

As we welcome in 2019, most of us will certainly make New Year’s resolutions that we feel will make us stronger, happier and healthier. These resolutions usually require keen attention be paid to exercise and diets. But what about our financial health? What kind of attention should we be giving to finances and investing? Bryan Glancy, of Spinnaker Financial Group, LLC, believes that the key to being a strong investor is to be in control of your own finances. 

“The best thing an investor can do is be in control,” he says. “Most people think that a good advisor will tell them what to do with their money. We think that’s absolutely backwards. A good advisor should empower people and help them quantify their goals. They should talk with and listen to them in order to understand what they are trying to do with their money.” 

Statements like these were used regularly as I recently had the opportunity to talk with Bryan about this often overlooked topic. Here are some very helpful tips and practical advice from our Q&A session.

What is your personal investment philosophy? 

At Spinnaker, we are fundamental investors. We pick businesses based on their fundamentals, not on their technical merit. For instance, a company with a strong brand that has a competitive stance in their industry, that wouldn’t be easily replaced, generates good cash flow and has a strong balance sheet is the kind of company that we believe in.

What are the best resources that you would recommend for your investors

The best resources are your “natural” resources in the financial industry…your accountant, your attorney and your financial advisor. Make sure that all your advisors are working together and are on the same page, not in their own silos. One advisor should see the work of another advisor and overlay their specialty on it.

What is your best tip for improving your financial health? 

The most important thing an investor can do is to quantify where they are going financially. Most people have a goal, for instance: retirement. As far as retirement goes, you need to know what amount of resources you need to be financially independent, at what date and how much you need to save to achieve that goal. If you can quantify where you are going, you give yourself the best chance of meeting that goal. It’s similar to a vacation…you wouldn’t go on a vacation without planning where you are going, how much you will be spending, where you will be staying or how you will get there, would you? So for your “life vacation” (retirement), you should be taking some time figuring out where you are going and determine what to do to achieve it.

What is the biggest mistake that investors make? 

The biggest mistake that investors make is waiting to invest. The most important factor in financial health (and wealth) is time invested. If a young investor in their 20’s starts putting away money early, they need to save a fraction of the amount needed to be financially independent. If you wait and don’t start investing until your late 30’s or 40’s, it takes a multiple of the same amount to achieve the same goal. A lot of investors will tell themselves that they will wait to pay off their debt before they start saving and investing. What they don’t see is, that if they wait to pay everything off, it’s too late…you’ve missed the whole compounding effect of investing, and that’s what really makes your money grow.  

Visit SpinnakerFinancialGroup.com or call (888) 615-4101 for investment services.