I recently met with prospective clients. We had a great conversation and ended an hour and a half meeting with handshakes and a smile. After the meeting, I felt really great about our conversation and the caliber of the couple I had just met with.
They had done well for themselves and were in the process of paying for all three of their children to go to college. They were proud of this and I was happy to hear about the success of their children. In addition, they had nearly $1 million saved up in various investment accounts. I do not have a doubt that they will find their way to their main goal – retirement.
However, a quick review of their situation revealed that they had too much in cash, no asset allocation plan, and no financial plan. The opportunity costs lost without the proper planning was a mile long. The value I would add to their situation would be multiple times what I would charge as a fee.
As I sat there after the meeting, I thought about whether these prospective clients would become my clients. We clearly had a rapport and they clearly needed my help. Unfortunately, I felt they may not take action because they were overwhelmed by the prospect of what they did not understand or they would take comfortable inaction. John F. Kennedy put it the best when he said “There are risks and costs to a program of action. But they are far less than the long-range risks and costs of comfortable inaction.” In life and with your financial situation – take action.