INDUSTRY INSIGHT
YOUR FINANCES
SPONSORED CONTENT
3 Financial
Blind Spots
R
ecently while driving on McKnight Road I was observing
all the things happening around me. There are billboards
and storefronts, street signs and traffic signals, busses, cars,
motorcycles and pedestrians. With the onslaught of stimulus and/or
distractions we can lose focus on the priority at hand. Like driving a
car where distractions and blind spots are an unavoidable factor, we
can also experience blind spots in our everyday life. Let’s focus on a
couple of such financial blind spots so that we can better navigate
them with our decision making.
#1 Emotions/Moods
There are two emotions that ruin investment returns – fear and
greed. Fear can drive otherwise logical decisions to swerve away from
something that isn’t really there or isn’t as threatening to your safety
and well-being as perceived. Greed, or chasing returns, can cause
people to take additional risks by driving faster than appropriate for
the conditions or ignoring their mirror that reminds them “objects
in the mirror are closer than they appear”. A well-defined and
#2 Savings Rate
Winning the lottery is not a savings or retirement plan. The
benefits of a systematic savings plan can be hidden from plain sight.
Automating and prioritizing your personal saving/investing can allow
you to save less over the years but have a larger amount in the future.
Studies have also shown that automating your savings can relieve
mental stress. According to the U.S. Bureau of Economic Analysis,
the personal savings rate in the United States is 5.7%. Most experts
recommend saving at least 10-15% of your income.
#3 Costs and Fees of Implementation
The financial services industry has long been criticized of
disguising fees and the true costs of an investment strategy or
program. This lack of transparency can cause investors to be skeptical
or uncertain about their ability to work with a professional advisory
firm. Make sure to insist on a clear view of all the costs of any
investment strategy. You should also be evaluating the performance
of your investments on an after-fee (net) basis. Otherwise, your
financial future may be impacted by these unseen costs.
So the next time you are driving along one of our busy, crowded
roadways in the North Hills of Pittsburgh, pay attention to the blind
spots in your car. When safely at your home or office, ask yourself,
“What am I not seeing in my financial life?”
While we summarized above three common financial blind spots,
we have observed several others including inflation, strategic asset
allocation, tactical allocation, asset location, taxes, and clear and
accountable reporting. Together we can identify opportunities to
address specific blind spot s and craft possible solutions that are in
your best interest.
We invite you to learn how our leadership, expertise, and support
empower families, businesses, and non-profit organizations to take
great care of their total financial situation – now and in the future.
Who We Are…
• As fiduciaries – serving your best
interests and avoiding conflicts of
interest
• As financial strategists and
coordinators – helping you design
and take the actions needed to
take the best possible care of your
total financial situation
• As astute observers of
markets, politics, technology, and
demographics – helping you
assess the impact of global forces
on your assets, your community,
and your peace of mind
disciplined investment strategy should take into consideration these
emotional influences.
McKinley Carter
Wealth Services
100 Bradford Road, Suite 400
Wexford, PA 15090
724-940-4400
mc-ws.com
McKinley Carter Wealth Services, Inc. (“McKinley Carter”) is an SEC-registered investment adviser. For additional information about McKinley
Carter, including fees and services, send for our disclosure brochure as set forth on Form ADV using the contact information herein. Please read
the disclosure brochure carefully before you invest or send money.
This Industry Insight was written by Brian T. Gongaware,
CFP®
Brian is a Principal of McKinley Carter, serves as Director
of Advisory Services in the Wexford office and is also a
Certified Financial Planner ™ professional. Brian uses his
deep expertise in client relationships and investment
management to help clients identify their financial goals
and needs, and design appropriate financial and investment
strategies.
North Allegheny | Summer 2017 | icmags.com 11