My wife will tell you that I love knock, knock jokes. She’ll also tell you I’m horrible at them. So, our joke-telling goes something like this, “Knock, knock.”
“No.”
I try again, “Knock, knock.”
“No.”
“Please.”
“No.”
So, what does this little story have to do with finances? Well, think about your own life for a moment. For most of us there’s an expectation, an inherent belief, that we’re going to get what we want. If we work hard enough, we believe, we can achieve our goals. We can provide a certain lifestyle for ourselves, care for people we love, and make a lasting impact on the world.
But there’s no guarantee of any of those things occurring. There is nothing in the rule book of life that says we’re going to get everything we want out of life. In fact, at any moment a resounding, “No,” might rush into our lives and interrupt our dreams. This is precisely why my clients are traveling on a protection path at the same time they strive to accumulate wealth. Lawsuits, disability, and death can show up on our doorsteps in an instant. Protection serves as a backstop so that any of these events occurring only causes limited financial damage.
For example, if you lost your ability to work because of a disability, who would you call to replace your income? Is there someone in your life that would give you several thousand dollars a month for years? Would you hear the same, “No,” that rings in my ears every time I try to tell a knock, knock joke?
If you passed away, how many years of your income would be available for your family? Is it enough that you’d be willing to retire on it, keeping in mind that $1,000,000 of assets typically generates $30,000-45,000 of annual income in retirement?
If you faced a multi-million dollar lawsuit after a car crash, where would the money come from? Have you discussed this recently with your property and casualty insurance agent or estate planning attorney?
Each of these events, and more, can be planned for financially. Only one is a certainty, but each can (and would) have a dramatic emotional impact. At your next review meeting, be sure to ask the financial advisor and insurance agent in your life if they can help you coordinate your wealth accumulation and protection plans. If you or they need a professional resource, give us a call at 212-541-8800.
Just after college, Austin experienced profound loss with the early and unexpected death of his father. The positive impact of financial planning for his family eventually led him to pursue a career in financial service, and he joined Wealth Advisory Group in 2013. Austin received his bachelor’s degree from the University of Evansville, summa cum laude and has obtained the Retirement Income Certified Professional® designation from The American College. He is a member of the BEI Network of Exit Planning Professionals™ and is a Certified Exit Planner™.
Austin’s practice specializes in risk mitigation and wealth planning for business owners and medical professionals. His team provides expert wealth management, personal planning, and business transition planning for physicians, executives, and entrepreneurs.
Austin Bransgrove is a Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. Park Avenue Securities LLC (PAS) is an indirect, wholly-owned subsidiary of The Guardian Life Insurance Company of America (Guardian). PAS is a registered broker-dealer offering investment products, as well as a registered investment adviser offering financial planning and investment advisory services. PAS is a member of FINRA and SIPC. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Please consult your tax, legal, or accounting professional regarding your individual circumstances. Wealth Advisory Group LLC is not a registered investment advisor. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. CA License #0L00236