Kester’s Corner(a new feature!)
John’s Note: I’ve asked our office associate, Elijah Kester, to share three lessons he’s learned about personal finance in his first three months on the job. We present the debut of Kester’s Corner:
As some of you know, my background prior to this position was in the sport business industry, primarily focused around large scale departments and very little instruction regarding personal finance. As a result, my current role at LWM, and the immersion into financial planning, has opened my eyes to multiple insights. I’ve identified three key takeaways that best answer the question: What have I learned about financial planning in my three months at LWM?
- What Risk Really Means: For many, the word risk is often associated with the volatility in the market, or the overall financial state of the economy. However, in financial planning, the correct usage of “risk” better refers to actions that could inhibit a person from reaching their financial goals. As an example, for the young person, the riskiest thing they could do with their long term monies is to park them in a low-earning savings account, thus inhibiting them from receiving the long term growth that market exposure could provide.
- Financial Management is About People: Another notion I brought into this position was that financial planning was primarily a numbers based industry. While it may be the case that financial information and numerical values are a focal point of this industry, I have been pleasantly surprised by the importance placed on trust, relationship building, and advice tailored to the person, not the portfolio. I have had the opportunity to meet multiple clients and have admired the conversation and connection between client and advisor.
- Simple Steps Lead Can Lead to Major Success: Growing up, I was convinced that wealthy people were profound individuals who had “struck gold” in a sense, whether by finding a lucrative career or by inventing a popular product. However, I have quickly learned that two simple steps have allowed people from varying careers and starting points to grow their wealth. Step one: live below your means, and step two: save consistently and automatically into vehicles that grow your savings.
These three insights are just some highlights of the many lessons I’ve gained from my experience so far. I’m eager to continue growing in this industry and to use my skills to assist clients meaningfully.
~Elijah Kester, LWM Office Associate