The SIPS Investment Philosophy
Since the decline of pension plans, financial planning has gotten much more complicated. There are many factors that need to be taken into consideration and all of these elements can be very confusing. In the beginning of my career as a financial advisor, there were several cases where I had to ask myself, “What in the world is going on here?” And I know if, as a trained advisor, I was confused by the circumstances the client had to be completely lost. This is why I created the SIPS investment philosophy. To help me combine what I know works with what I see in my day to day practice; and also, to help me prioritize and re-present client information in a logical fashion.
Every retirement plan needs a sturdy foundation. The foundation in the SIPS philosophy is to provide my client with a consistent stream of income, which they can use to cover monthly expenses and also enjoy their retirement. This is the base that we build on. Using a structured system of safe investments and the SIPS Retirement Planning System, I am able to reconstruct the personal pension system. Some times clients will never move past this stage, but it is vital to ensure every client has the opportunity to secure their financial future in retirement.
Some clients will be able to move into the next level, Estate Growth and Protection. This is the second stage. After establishing a base we can now build for the future. We start to move together into thinking about the long-term and asset protection for leaving a legacy. Using the SIPS Retirement Planning System, we include strategies for tax planning, insurance and annuities.
Next we have managed assets. Here clients are able to participate in the markets with an emphasis on principal protection. Those who are fortunate enough to reach this status of the pyramid are able to make a big impact on the lives of their heirs and community. Generally, advisors will start here at this final stage, in the managed investments; however, I would challenge them to shift focus to building a stable foundation for their clients, before protecting assets and then finally focus on investments.
The greater quality of life my clients experience from better understanding where they are financially is not just a rewarding experience, it is part of my day to day practice. I have found that methodically implementing this investment philosophy has provided the simplification process my clients were craving. Also in simplifying the process, I have been able to help more clients, which has left everyone excited about the future. It’s key to what sets me apart from my competition.