Like most everyone else in this country, I was stunned by the events of September 11. Stunned, but not surprised. I had long expected "something". The thing that I find surprising is the degree to which others seem to be surprised. I want to ask, "Where have you been?" The "handwriting" has been on the wall for years.
In any case, we have now awaken to the smell of smoke, and it is more than burning toast. Bill Clinton's "bridge to the 21st century" has now evaporated into the smoke that it always was, and we must now get down to the business of taking care of ourselves, our families, and our communities.
Those of us who can must start with ourselves. While our dying for the good of the order may be noble, the survival of our families and communities depend on our living for the good of the order.
I shall explain with an example.
I have been a CPA in public practice for roughly thirty years. I have seen some good things and I have seen some bad things. I have seen some smart things and I have seen some dumb things. For the most part I have tried (not always successfully) to answer the questions I have been asked, give advice when it was sought, and otherwise record events as they were.
Recently I made an exception. I strongly encouraged a long time friend and client to provide me with enough information to permit me to independently assess his future financial probabilities. The results of my assessment are troubling. Assuming a normal life span and no corrective action, this man will be destitute long before it is his time to go.
How did it happen?
Essentially, he went to a "one stop shop" for both a financial plan and investment services. He was most likely told what he no doubt wanted to hear and he acted on it. To the best of my knowledge he had no timely independent advice from anyone.
Can he recover?
I hope so.
Can this sort of thing be prevented?
Absolutely!
First and foremost, you are your own best financial planner. No one is more concerned about your financial future than you are, and there is nothing particularly mysterious about a financial plan. With a little reading and possibly a bit of professional advice, most people can formulate a rudimentary plan. For most of us a rudimentary plan is all that is needed (or possible).
Once the plan is on paper it is wise to discuss it with a trusted advisor. This trusted advisor could be your accountant, banker, attorney, insurance person, stock broker, etc., etc. It should definitely be discussed with your spouse if you are married.
If you really do need a professionally prepared plan, separate the planning function from the funding function. If independent from each other, the planner and the funding person will keep each other honest.
If you have already gone to a "one stop shop", at least get your plan reviewed by an independent professional.
Don't let today's dream become tomorrow's nightmare.