Why Having a Financial/Investment Plan is Critical To A Successful Outcome.

Since Aurora Strategic Advisors opened its doors in 2015, our main goal has been to help investors/retirees achieve their financial goals.

However, over the nine years, I have yet to see a new client bring in a financial plan for their investments.

Why is this so important? I like to compare building wealth to building a home. A builder would never attempt to build a house without a "blueprint" of what it will look like when it is finished. They will go back and constantly check the blueprint to ensure the house complies with the building code and reflects what the homeowner wants it to look like.

Building a successful portfolio is no different.

I want to address two key areas: poor performance and missing critical benchmarks.

We have just come through two years of Covid, and out-of-control inflation has harmed almost every investor, retiree, 401k, 403b, and most investments.

As an investor, have you made changes to your investments? Have you revisited your original goals and made adjustments? The answer I hear daily is no, I have not changed anything.

If you were supposed to make 8% a year in growth over the last two or three years, you have missed this target; how much has that changed your goal? How will you recover, not just the 8% a year?

If you were negative -15%, -20%, or greater, you must first get those negative returns back to the starting point to break even, but you are still short the 8% or 24% over the period to reach your goal.

Are your mutual funds underperforming? Once again, if they lost value over the last few years, and now in 2023, they are trailing the top-tier sectors, how are you bridging the gap?

I find too many investors, retirees, and 401(k)/403(b) participants acknowledge the facts but do nothing to improve the outcome.

If you have not taken the time to check on your investments, summer is a great time to review your investments. I encourage everyone to have a realistic financial goal for their investment plan. Let me know how you will reach the goal if the number is $1 million. What percentage does your money have to grow yearly? What is an achievable number if that is impossible, and is it enough to meet your goals?

Are you on target? Are you over your goal? Are you short? Whatever the case, if you don't have a financial blueprint, you have no idea where you are in your journey.

If you feel this is too complex and difficult to stay on top of, please consult with a Financial Advisor or call us. We are "fiduciaries, " meaning we must do what is best for you. Not every Financial Advisor is a fiduciary, so investors should know if the person in front of them has "Conflicts of Interest."

We do not sell commissionable products, and we provide advice to our clients. Our clients understand our recommendations have nothing to do with a commission since we do not offer such products. We offer all prospective clients a no-obligation, free consultation to review their 401k/403b, portfolios and financial programs.

Have a great weekend and a safe 4th of July.

Darek

[email protected]