Frequently Asked Questions

“How do I invest my money?”

The answer to the question usually depends on the needs, temperament, and available resources of each individual or business. The “best” investment for one person is often not the best for someone else. The process of choosing the most appropriate investment can be made easier by carefully considering and answering the following questions:

What are my investment goals? 

In other words, “What do I want the money to do for me?” For example, an investor might need to have additional income to meet current living expenses, or they may be planning for retirement, looking to pay for their children’s college, or have other ideas about how their investments can work for them – either now or later. This is an important part of the process that needs to be shared and discussed with a qualified financial planner and advisor.

What is my risk tolerance?

Do you consider yourself a conservative investor? Aggressive? Moderate? Do you understand the difference and the importance of the difference? This is one of the most important areas you need to understand when addressing your financial future. Find a balance and a strategy you can live with and one that you understand. Also consider whether you can you afford to risk losing a portion, or possibly all of your investment.  In general, risk is related to return: the higher the risk, the higher the potential return; the lower the risk, the lower the potential return.

What is the economic outlook?

The state of the economy as a whole can change the mix of desirable investments. Make sure you are not locked into something that may not make sense down the road. Stay informed and work with an investment advisor who has lived through and operated during these business cycles and is knowledgable about what they mean. That experience with the past can be invaluable in the future.

How liquid does the investment need to be?

The term “liquidity” refers to how quickly an investment can be turned into cash without losing any of the invested dollars. The question might also read, “When will the money be needed?” There are a variety of options available under many different terms.

How much money is needed to invest?

The investment directions open to an investor can vary depending on the amount of money available, but there are a number of options available depending on the goals an investor sets. Many things can influence the ultimate decision such as liquidity, investment tolerance, when the money will be needed, income and income needs, and whether the investor is anticipating additional amounts that can be invested down the road.

What is the impact of income taxes?

Income taxes can have a significant, negative impact on your investment results. For example, many high-income individuals invest in municipal bonds because the interest from such bonds is generally exempt from federal income tax. And in some instances, the interest is also exempt from state income tax.

Is the skill and knowledge needed to manage the investment available?

An investor may not have the specialized skills and knowledge needed to properly select or manage an investment. In such instances, professional investment advice should be considered. This is your money and your future. Consider your investment advisor based on their credentials, experience, and reputation. Making the right decision can have a powerful impact on your future and the years you and your family work.

What is a Certified Financial Planner®? 

The Certified Financial Planner® (CFP®) designation covers the knowledge and skills necessary to objectively assess financial status, identify problem areas, and provide comprehensive, client-based financial planning. Certified Financial Planners® must successfully complete the CFP® Board’s Comprehensive Certification Examination, acquire three to five years of financial planning-related experience, and voluntarily ascribe to the CFP® Board’s Code of Ethics and Professional Responsibility. Additionally, a CFP® must obtain 30 hours of continuing education every two years in financial planning areas such as estate planning, retirement planning, investment management, tax planning, employee benefits, and insurance. 

What is a Master of Science in Financial Services? 

The Master of Science in Financial Services (MSFS) degree is designed explicitly for financial services professionals, such as life insurance specialists, financial planners, trust officers, CPAs, attorneys, and investment consultants. The MSFS enables your financial planner to provide in-depth knowledge and skills to serve you more effectively in a rapidly changing economic and institutional environment.

What does it mean to be Certified in Long-Term Care?

Certification in Long-Term Care (CLTC) requires the study of all topics relevant to the profession of long-term care from aging in America to Medicaid planning. Advisors certified in Long-Term Care have the knowledge and skill necessary to aid you with LTC services, LTC insurance including its implementation, and estate planning with respect to LTC.

What is a Certified Divorce Financial Analyst?

Certified Divorce Financial Planners (CDFP) are experts who are trained and experienced in researching and analyzing personal, business and tax issues related to divorce. They help individuals, couples, matrimonial attorneys and divorce mediators to achieve fair and workable agreements. By using a Certified Divorce Financial Analyst (CDFA), both partners have a clearer view of their financial futures. Only then can they approach a settlement that fully addresses the financial needs and capabilities of each.

What is an Accredited Asset Management Specialist?

An Accredited Asset Management Specialist Program (AAMS) provides a comprehensive review of financial issues clients face, enabling an advisor to understand and address the total financial picture of each client.

What is a Chartered Life Underwriter?

The Chartered Life Underwriter (CLU) is widely recognized as the highest credential for life insurance professionals. Chartered Life Underwriters have the ability to present a wider range of solutions for the life insurance needs of individuals, business owners and professionals, including income replacement, estate planning, and wealth transfer.

---

Sam Gott, Registered Investment Advisor
4 Dominion Drive
Building 3, Suite 250
San Antonio, Texas 78257
Ph. 210-849-7772
Fax 210-881-6832
sam@sgria.com **
www.sgria.com

** We do not buy or sell securities by email; purchasing or selling of securities must be done by telephone, with verification, or in person.

Securities offered through Dominion Investor Services, Inc. Member FINRA/SIPC

Certified Financial Planner Board of Standards, Inc. owns the certification marks CFP(R), CERTIFIED FINANCIAL PLANNER(tm) and federally registered CFP (with flame logo) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

Design by Lynn-Douglas Media