Spotlight on Larry Moskat, CFP®

 

Business Briefs
 
S.O.S…and How to Financially Weather a Personal Crisis
By Larry Moskat, CFP®--Managing Member-Retirement Income and Inheritance Advisors, LLC—A Registered Investment Advisor-Scottsdale, AZ.                                                                                                                               
 
Imagine yourself on a deserted island, feeling more alone than ever before. At one end of the island is an airplane located on an abandoned airstrip, filled with fuel and fully operational. Unfortunately, you are not a pilot! While you have the machinery to accomplish your objective, you probably lack the training and knowledge required to fly out. So what are your choices?
 
  1. You can pull out the flight manuals and spend days studying how to fly the thing.
  2. You can resign yourself to your marooned status and convert the plane into a nice condo.
  3. You can get on the radio and call for help!
 
Like the desert island dweller, a major life change such as a death, divorce, retirement or inheritance can leave many of us feeling financially marooned and understandably numb. Here you are with assets, an insurance company or property settlement, your life’s nest egg (much like the airplane), but you are distracted and numbed by all of the changes taking place, rendering you less able to respond to the maze of financial and legal matters at hand. You also face the same choices as our desert island castaway: (1) do it yourself, (2) give up, or (3) call for help.
 
We’ve all heard stories of newly widowed women, lottery winners, retirees and the like who have little or no money left within 18 months of receiving their windfalls. The issues of guilt, emotional interference and financial inexperience can be disastrous. It is important to acknowledge the need for a personal adjustment period so that emotional distortion and financial judgment can stabilize. This is a time of confusion and vulnerability, yet it is the exact time when financial events occur that demand immediate attention. Successful and objective management assistance is crucial to your well-being at this point and your first step is to “get on the radio” and call for help!
 
Here are a few points to help lead you to a successful solo flight:
 
  1. Ask prospective financial planners about their experience with the stages and timing of financial moves as they relate to major life changes. A financial planner must be a team player and coordinate the proper information flow between your various advisors. Trust your intuition when making your selection of a planner—intuition may be less affected in a crisis than intellect.
  2. Avoid making long-term, non-liquid investment commitments right away.
  3. Do not rely on the advice of well-intentioned friends, neighbors or relatives on investment matters. While their advice may seem convenient and even logical, it is non-professional and their situations are probably very different from yours.
  4. Recognize that counterproductive relationships can exist between money and emotions; be sure your advisors understand what you are going through and are willing to help you sort out emotional trauma from sound money management-on your terms!
  5. Don’t try to financially plan the rest of your life right away. Move slowly! Obtain financial education from books, seminars and advisors. You’ll be amazed at how panic gives way to a new sense of control, independence and confidence through the use of guided education. Be sure your advisors realize what is important to you and are willing to invest time with you.
  6. Don’t fear risk—understand and manage risk.
 
It can be said that life changes are more a matter of “when” than “if.” If you have not established a relationship with a financial planner, consider doing so before a crisis occurs. Some planners will see you for an initial consultation at no charge. You may then interview several,at no cost, permitting you to experience various styles and personal chemistry. Work only with someone you feel has ability and integrity.
 
Remember that you are worthy of an advisor’s time, regardless of how much money you have. Taking the right steps to preserve assets while you gradually and appropriately apply them to your new direction in life will pay handsome dividends now and in the future. Good luck and best wishes for a smooth flight!
 
Larry Moskat, is a CERTIFIED FINANCIAL PLANNER™  based in Scottsdale, Ariz., works with clients enduring difficult circumstances including personal loss, inheritances, job loss and retirement, serious illness and other traumatic life transitions. He also holds a graduate degree in clinical psychology and has worked as a professional pilot. For more information, visit www.RIIAdvisors.com.