Money Matters

What Our Clients Have Taught Me

20 Apr 2017 by: jhurley 

by Bob Eddy, CFP ®

For more than 42 years, Bob Eddy has assisted CCMI clients with a variety of their financial planning and investment concerns. Below is a list of highlights from his career which focuses on what clients have taught Bob and how they made him an even better CFP® Professional.

  • Discussing financial expectations with children is vitally important. Before they apply to college, ask your children what they expect their parents will pay for their undergraduate and graduate educations. Similarly, before your child walks down the aisle, discuss what they expect from you relative to underwriting wedding costs.
  • As one ages, there is a desire to simplify your life and liquefy some of your illiquid investments.
  • Through life’s ups and downs, including personal bankruptcy, one client told Bob that he was going to sell his business when it rebounds, but not try to get “top dollar”. Lesson learned-at some point, it’s more important to conserve wealth than to create more wealth than is needed for financial independence.
  • It’s okay to delay retirement even if you are financially independent. Folks continue to work because they enjoy what they do, they haven’t cultivated a hobby, they need a purpose, or they will miss the status and power that comes with their job.
  • As folks head into retirement, those that seem to have an easier transition to the encore years are folks that gradually cut back on hours at work, consult, or work part-time.
  • Clients who have cultivated a hobby, like to spend time with their grandchildren or volunteer are more comfortable with “retiring” knowing they have things to move toward after their work life ends.
  • During the first five to ten years of retirement, people spend more money than when they were working full-time. After about ten years, folks travel and entertainment expenses are less and may curtail several hobbies; thus, their budgets are smaller than during their first ten years of retirement.
  • During major market corrections, such as we saw in 2008-09, it’s more important for clients to sleep well rather than spend sleepless nights worrying about their portfolios. If market volatility is disturbing their sleep or their health, clients need emotional relief. A risk tolerance level can always be changed, even if doing so temporarily inhibits the longer-term investment results of a portfolio. Dying from investment stress isn’t worth it!

CCMI provides personalized fee-only financial planning and investment management services to business owners, professionals, individuals and families in San Diego and throughout the country. CCMI has a team of CERTIFIED FINANCIAL PLANNERTM professionals who act as fiduciaries, which means our clients’ interests always come first.
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