The Value of a Financial Advisor: Managing Inherent Risks

May 14, 2019

 

This episode of The Confident Wealth Podcast with Bill Bush and Pete Bush continues on as the 5th installment in their series, The Value of Working with an Advisor. Learn more about the inherent risks we have, and how we can manage them from a financial advisement standpoint.

 

 

Episode Highlights:

 

• 01:56 – How does insurance come into play with life and death situations?
• 02:40 – What are you doing to manage your downside risk?
• 04:05 – There is a cost to waiting too long for insurance.
• 05:56 – Bill Bush shares a personal insurance story.
• 07:05 – Why do some folks underestimate their insurance needs?
• 08:52 – How does an advisor go about managing inherent risks?
• 10:19 – Usually there are financial incentives to get insurance evaluated.
• 11:27 – Motivate clients to take actions on steps towards their insurance needs.
• 13:01 – Focus on the difference between the cost of the insurance premium and
• the cost of the problem.

 

3 Key Points:

1. The cost of the solution is always a fraction of the cost of the problem.
2. Evaluate your need to find potential solutions for it.
3. The steps for an advisor to manage a client’s inherent risks include: full analysis, figure out what is already in place, see if there are any gaps that need to be filled, keep reviewing, and motivate people.

 

Tweetable Quotes:

• “Life is going to happen. Thus, death is going to happen too. And of course, that can leave a big financial hole in a family or a business.” – Bill Bush.
• “It’s important to separate out the cost of the problem from the cost of the solution – Pete Bush.
• “You should monitor your beneficiaries, kind of review that, maybe in an annual review with an advisor.” – Bill Bush.

 

 

Resources Mentioned:

• Horizon Financial Group
• The Confident Wealth Podcast