To truly build a successful financial plan, you also need the confidence to execute it. Traverse City-based Hemming& shares how to claim your power over your money.
Financial planning can be overwhelming, intimidating and perhaps a bit of a touchy subject. Since investing involves some degree of volatility, working with an advisor who understands when to stay the course and when to make strategic changes is key.
“Most investors are driven by the human emotions of fear; the fear of losing and the fear of missing out,” says Hemming& financial advisor and partner Autumn Soltysiak. “Experienced advisors can put current markets and economic events into perspective and relate it to your specific investment plan.”
Fear can paralyze would-be investors and keep them trapped in a state of wanting to see their money put to more effective use, but feeling helpless to make the right choices. Finding the confidence to put your money to work for you doesn’t happen overnight, of course. Soltysiak and her team have found a strategy that helps their clients work toward that feeling of empowerment—one step at a time.
A Three-Prong Approach
The first step is to embrace what’s important to you. Hoping to retire soon? Saving for a lake house? Starting a family and a college fund? Lean into your intentions and be honest with yourself. Once you’re deliberate with financial planning—even the things that may make you squirm—you can set realistic expectations.
Next comes the educational deep dive. Invite in all the right teachers and mentors, gain confidence and keep a steady eye on those life goals. After taking a magnified look at where each client is and where they want to go, Hemming& advisors dig into options and opportunities.
Armed with clarity, realistic expectations, and education, you’re ready to really put your money to work.
The final building block, according to Hemming& Founder and President Dawn Hemming, is empowerment. This might look like early retirement, or leaving a legacy for your family. Once you feel embraced and educated, empowerment steps up to bat and you’re ready to design your future.
Confidence isn’t easy to come by, but a solid connection with an advisor who “gets” you makes the difference. “We let our human side shine through,” Soltysiak says. “We don’t hesitate to lead difficult conversations, attend professional meetings alongside our clients or offer learning opportunities to build confidence.”
Here’s how Hemming& works with clients to ensure financial plans are well coordinated and effective:
- Disciplined Rebalancing: When volatility strikes, whether soaring high or dipping low, a good advisor assesses the need to strategically rebalance your portfolio.
- Behavior Coaching: Investor emotions all too often lead to behavioral mistakes that can cost significant loss of return. It’s critical for an advisor to analyze the risk-to-return tolerance of individual portfolios and provides the decision-making needed on whether a rebalance is warranted.
- Investment Selection: Investment management includes asset allocation, security selection and portfolio construction. You want an advisor who uses a disciplined approach to select and replace investments that provide value through diversification, income and returns.
- Financial Planning: The process begins with a comprehensive evaluation of a client’s current financial state along with their personal and family situation, risk tolerance and future expectations. Each element is strategically customized and the overall plan is well-coordinated to ensure goals are effectively reached.
- Tax Management: Hemming& Wealth Management always takes a tax-smart approach to comprehensive wealth management, looking for every opportunity to add value.
One way to empower yourself? Get a sense of the triumphs and trip-ups others have experienced along the way. Hemming recalls a client who was focused on financial security and wanted to use their extra savings to pay cash instead of using low-rate fixed loans like a mortgage. “Long-term averages of investments in stocks and bonds have historically made more money than the cost of the mortgage,” she says.
By using fixed debt and investing their savings, the client was able to build wealth in both real estate and investments, and improved their liquidity. Mortgage rates almost doubled in the last year, meaning that if they wanted to access those funds for home improvement now, the cost would be significantly higher.
It’s also important to understand risk, Soltysiak says. And not just the risk of account values going down, but the risk that you won’t meet future goals, or the risk that a savings plan won’t keep up with your needs.
For example, social security cost of living adjustments aren’t designed to keep up with real inflation. If you depend on fixed income alone, your savings won’t keep up when you need it the most. “After explaining real risk, historical perspective and time horizon, often clients are able to achieve good long-term results,” Soltysiak says.
Abundance Over Accumulation
When you believe in abundance over accumulation, you realize every day should be lived to the fullest, collecting joyful moments, achievements and celebrations. Empowerment comes to fruition when you view money as a tool for obtaining fulfillment and joy in all phases of life.
“Everything we do is focused on the client’s aspirations for an abundant life,” says Dawn Hemming. “Whether dreaming of a new car, lake house or retirement lifestyle, we calculate opportunities, make purposeful decisions and ensure every financial plan is well-coordinated.”
There for You
When wealth planning is whittled down to three digestible bites—embrace, educate and empower—goals are realized and the celebrations can unfold. Through these trusting, long-term client relationships, Hemming& is able to coach through hardships and usher in milestones.
“Our mindset is optimistic, confident and uplifting,” Hemming says. “Positivity inspires our view of money as a useful resource to achieving personal fulfillment and joy, rather than just accumulation.”
With financial guidance and encouragement to go after the things you want now and later in life, feeling empowered comes naturally.
Read Next: Create Your Weath Roadmap with Hemming&.
Hemming& Wealth Management, Inc (“Hemming&”) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Hemming& and its representatives are properly licensed or exempt from licensure.
The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. Please consult tax professionals for specific information regarding your individual situation.
No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. All investments include a risk of loss that clients should be prepared to bear. The principal risks of Hemming& strategies are disclosed in the publicly available Form ADV Part 2A.