It is a given that participating in a single financial product impacts the entirety of your household finances. For this reason, two things must be kept in mind when speaking with your advisor or contemplating new directions for your wealth building.
#1 Keep it Simple.
Using too many different products or more than one financial advisor; what I call the shotgun approach to finance is ineffective. Also, tying your finances in a knot to save on tax, or writing ten cheques a month are things to avoid. If it can’t be explained in a couple sentences, it isn’t a strong plan. It’s fine if the strategy is multi-part, but it’s not fine if you cant’ disengage in less than a week. Ask yourself: could I be doing better with a strip bond or mutual fund?
#2 Commit to the strategy.
Once you’ve decided to go ahead with a plan, stick to it. There is the opportunity-cost of having started this plan versus something else, and additionally the lack of your full attention will cripple the success of anything complex. Talk about it in advance, ask the questions you need, and trust your advisor. Do, or don’t; but definitely don’t waver.
