A Good Financial Advisor Will Tell You…
“This book is not an ‘introduction to investing’ book.” And true to their words, Luna and Kisner present a concisely written handbook for “those hardworking successful individuals” who’ve been there and did it, and are still doing it – investing their hard-earned money. But what makes A Good Financial Advisor Will Tell You… different from the countless number of investment books available to the common investor? Luna and Kisner focus on new concepts without gracing endless pages with overwhelming amounts of statistics and charts. Plus, they dedicate a full chapter on the most pervasive and chronic issue that plagues the investment world: emotions.
Luna and Kisner lay the groundwork for successful financial planning by first addressing the reason why people don’t often have a high rate of return in their investments. The answer has everything to do with understanding one’s emotions through Behavioral Financing – “a relatively new area of study that explores the intersection of psychology and applied economics.” The shortened version of this study states that people, more often than not, take financial risks based on feelings, rather than basing their decisions on facts, figures, and history. Once investors understand and apply this approach, then it’s time to “invest like the pros” by creating Investment Policy Statements that lay out ground rules IN ADVANCE of investment decisions. These rules should be designed to reduce “investment risks without reducing returns,” which can be successfully achieved by looking into Alternative Asset Classes (i.e., real estate and private equity) and by following Luna and Kisner’s seven-step approach to a lower-risk portfolio.
Retirement in the U.S. is a great concern and, in order for financial planning to succeed in the long term (which includes legacy planning), Luna and Kisner explain that it is critical to incorporate life expectancy, inflation, and healthcare into the investment and income equations. One strategy they introduce “to provide maximum retirement income…without depleting your portfolio” is through Income Harvesting, which “matches short-term needs with short-term cash availability and long-term needs with higher yielding, long-term investments.”
As Luna and Kisner bring A Good Financial Advisor Will Tell You… to a close with their final chapters on debunking myths and misconceptions that investors buy as truth and on providing tips to find a good financial advisor, their hope is that their book “will motivate you to make whatever changes are required to realize your financial goals” – and, indeed, you will not be disappointed with all their helpful advice because it will motivate you!
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