Broker Check

Lost in a Bag

May 12, 2017

Have you ever put your keys, or some other small item, into your pocketbook, gym bag, attaché case or carryall only to have them seemingly disappear? You know what I mean. You drop your keys into the bag and, literally seconds later, you stick your hand into it, grabbing for those same keys, to no avail. Then, with a groan, you begin to take everything out of your bag until finally, you find your keys.

How many of us have done something similar when it comes to what is supposed to be our investment portfolios? I say supposed to be, because I believe that in many cases, folks do not have investment portfolios as much as they have bags containing a rather random selection of investments.

Those investments are often made in a way in which there was little thought given beforehand as to how they would best work together. Instead, too many people often end up with an investment grab bag filled with items selected without much though as to coordination and result. Worst of all, sometimes, as in the example of the keys above, things get lost.

When I say that things get lost, I do not mean it literally. What I am saying is you might make an investment in something that seems good at the time and then kind of toss it into a bag, only to forget it was there in the first place.

I believe, that we should have investment portfolios that are, in essence, beautiful financial mosaics. The component pieces of these mosaics should work together, allowing us to strive toward creating a wonderful picture of present and future financial health, for ourselves and our families.

However, if we throw our investments into a bag, in a somewhat random way, not only are they likely to get “lost,” meaning we forget they are there and what they are there for, it is likely that all the parts of what should create a beautiful picture are, instead, left to devolve into chaos.

What is the solution? Consider taking a bit of time each week and working to tidy up your financial bag so that you know what is in it. Create an inventory of all financial products. While you are at it, you probably will want to analyze your monthly spending patterns and yearly spending commitments. You will probably want to track how well you are doing at saving money.

After you have done this cataloging, you can get to work seeing what pieces fit together and what pieces do not, in what will become your financial mosaic. Some folks spend some time, in the evening or weekends, working on jigsaw puzzles. The satisfaction they get is putting the puzzle together and, in the end, seeing the beautiful picture they worked on creating. Why not work toward creating a beautiful financial picture for your family?

I realize that at first it might seem scary and not like a lot of fun. Yet, after a bit of work, I believe you will feel better and more empowered about your financial future. You might want to work with a financial services professional who can help you build your financial mosaic. Whatever the case, take action now. You will be happy you did.

Scott R. McGimpsey May 12th, 2017

This material was prepared by Scott McGimpsey and does not necessarily represent the views of the presenting party, nor their affiliates. All information is believed to be from reliable sources, however, we make no representation as to its completeness or accuracy. Neither Summit Brokerage Services Inc. nor Scott McGimpsey is engaged in rendering legal, accounting, or other professionally services. If such assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any federal, state, or municipal tax penalty. Moreover, a diversified portfolio does not assure a profit or assure protection against loss in a declining market. UNIFIED PLANNING GROUP is an independent firm with securities offered through Summit Brokerage Services Inc., Member FINRA, SIPC