Learn how there are fewer companies on the stock exchange than their used to be and why to be aware of that. We also go over the six steps to financial planning.

 

Main Questions Asked:

What should I expect from my financial advisor?

What are my financial goals and why should I share them with my advisor?

Will I get help implementing my new recommended financial plan?

 

Key Lessons Learned:

How There Are Fewer Companies to Invest in Than There Used to Be

• There are fewer companies than there used to be traded on our US exchanges. The market is about half of its peak in the 1990s.
• Certain companies are having a bigger impact on the market index. Take out Apple, Google, Facebook, Microsoft and the market would be flat.
• We need to be careful. These companies have a larger impact than they used to.

 

The 6 Steps of Financial Planning

1. Establishing and defining the client planner relationship. The client should understand what the relationship will look like. The planner defines how often we review, adjust, and how you measure things.
2. Gathering client data and including goals. Sometimes this doesn’t happen. We want to know what your concerns are and what your goals are. It is important to know these things at the beginning of a relationship.
3. Analyzing and evaluating the client's current financial situation. This is important to make sure that goals and current plans align. These need to be discussed with your advisor.
4. Developing and presenting recommendations for your client to access. This process takes time and is developed after your analysis. This is important to take time creating the plan and walking the client through the recommendations.
5. Implementing the recommendations. Some planners just present the recommendations. Clients need to be coached and persuaded to implement their plan.
6. Monitoring those recommendations. Once these recommendations have been implemented they need to be monitored, because any plan may need adjustments.

 

Links To Resources Mentioned

Money Map Retirement Review

1-800-757-0436

Fewer Listed Companies: Is That Good or Bad for Stock Markets?

The Stock Market Is Shrinking. That’s a Problem for Everyone.

Thank you for listening!