FINANCIALLY
Speaking
Becoming Financially Independent
W
hen Barbara and I married many years
ago, we received lots of advice from
our parents about insurance, saving and invest-
ing. Although I listened attentively, candidly I
felt these ideas were a little old-fashioned. But as
is often the case, as I grew older, I learned that
much of their advice was indeed valid.
Since the ideas our parents shared with us
have worked out well for Barbara and me, I have
often found myself passing their wisdom on to
our children as well as my clients.
With this in mind I would like to share with
you some timeless suggestions:
1.
Jeffrey M. Orth is a
Chartered Financial
Consultant, a Certified
Advisor in Senior Living,
and an Investment Advisor
Representative, with over
20 years of experience as
a business and personal
planning, insurance,
and wealth management
specialist. Jeff is available for
group lectures and private
consultations. Visit integrated-
financialbenefits.com or call
408.842.2716.
• Your mother and I worked hard to get where
we are. Start saving early and make it a
regular habit.
• You have created a family, and now you are
responsible for their protection and well-
being. If you are disabled or die, how will
you continue to provide for your family? Make
sure you have enough insurance to cover your
obligations.
• Credit cards are a convenience. Always pay
your bills on time. The interest on credit cards
can often spin out of control and become like
quicksand.
• There is good debt and bad debt. Avoid bad
debt, such as credit cards, as much as you
possibly can.
• It’s better to collect interest then pay it.
• Pay yourself fi rst. Every time you increase
your earnings, increase your savings.
Jeffrey M. Orth is a
registered Representa-
tive of, and Securities
and Investment Advisory
services offered through
Homor, Townsend & Kent,
Inc. (HTK).Registered
Investment Advisor Mem-
ber FINRA/SIPC,16845
Von Karman Ave, Ste.
225 lrvine, CA 92606
(949)754-1700. Inte-
grated Financial Benefits
Network is unaffiliated
with HTK. CA Insurance
License #0C49291
• If it sounds too good to be true, it probably
is. Scams are everywhere and even smart
people get taken by them every day.
• Don’t listen to someone who tells you they
can get a higher rate of return without any
additional risk. The relationship between
risk and reward has existed forever and is
not likely to change.
• Be very careful when someone tells you about
a hot tip. In my experience this advice rarely
works out well.
• Never put all your eggs in one basket.
Diversifi cation is the key to retention and
growth.
• It is important to know your capacity for risk,
8
GILROY • MORGAN HILL • SAN MARTIN
WINTER 2020
then not exceed it. Keep in mind that
your risk tolerance will change over time,
due to investment experience and age.
• The asset allocation of your investment
portfolio should change over time and
always be focused on the long term.
• Timing the market is not sustainable for
long term investing. I know of no one
who is actually good enough to do this
effectively. Time in the market not timing
has historically produced better results.
It is helpful to think in ten-year performance
cycles when thinking about your investment.
• Strategic, long-term, planning and tactical,
short-term, planning both have a place in
the world but the main focus should be on
long-term planning.
• Dollar cost averaging can be a powerful
tool in accumulating wealth. Investing
systematically, with no regard to market
ups and downs, can be an effective way to
build wealth.
• Plan for course corrections. Review your
investments and goals from time to time to
ensure your planning is still on track.
• No one likes paying taxes, but make sure
your focus is on what’s really important—
your after-tax return.
• Divorces are expensive. Choose your
life partner carefully and invest the time
and energy it takes to have a loving and
lasting marriage.
• Las Vegas didn’t become Las Vegas by
giving money away. Gambling is not a
sound strategy for wealth accumulation.
If you must gamble, be careful and set
acceptable limits for loss.
There is always something to worry about:
war, terrorism, political friction, recession…the
list goes on and on. People often allow these
concerns to become reasons for not focusing on
their financial goals. Those who are paralyzed by
the fear of uncertainty can miss out on potential
growth in their portfolio.
Making smart decisions for your financial
future can seem overwhelming at times.
Reaching out to a professional can help you put
together a strategy to reach your financial goals.
gmhtoday.com