This
is an important step for two reasons. First, your balance sheet
is a good benchmark of what you have been doing in the past. Based
on your age and your resources, we can often make educated assumptions
about your past spending, saving, and investing patterns.
Second,
the analysis of your current asset mix breaks down your investments
into three categories—cash, fixed-income, and
equity investments. This step is particularly valuable because
you pull it all together—combining your accounts at various
institutions, including the isolated and piecemeal investments
you may have made over the years.
We
then compare your current allocation to the optimal allocation
for your
investor profile. Many people are surprised by their net
worth because they’ve never seen it in black and white. The
other big surprise may be that you have investments that don’t
support your financial goals or match your investor profile.
This
is an important step for two reasons. First, your balance sheet
is a good benchmark of what you have been doing in the past. Based
on your age and your resources, we can often make educated assumptions
about your past spending, saving, and investing patterns.
