Wealth Management
A good investment
Simplifying finances in a complex financial world
By Clare DeCapua
Smart Business Atlanta | March 2009
Bob Mathis
CEO
Peachtree Planning Corporation
The new year is well under way, and
many of us are still wondering, “What
now?” Planning has taken on a whole
new meaning in this unpredictable environment. How can investors prepare for what
they can’t easily predict?
“A crisis can be a good opportunity to make
strategic changes. But we have to remember
that behind all the negative headlines are
people, our friends and neighbors, who have
had their lives, jobs, retirements and dreams
for the future affected. Many people are having to make some very tough decisions,” says
Bob Mathis, CEO of Peachtree Planning
Corporation. “It’s important that, during
times like these, people have an integrated
view of their financial world and that they get
control over their situation and make sure
they’re continuing to make progress toward
their goals.”
Smart Business learned more from Mathis
about maintaining a level head — and a practical strategy — in a volatile market.
What are some of the big issues people are
facing?
When you get into a market crisis, you get
to see, sometimes pretty dramatically, what
happens if you haven’t built a sound foundation in your financial plan. When people are
faced with things they can’t control, such as
losing jobs or having their investment
accounts lose value, it’s made much worse
when they don’t have adequate liquidity or
savings. Every financial decision you make
impacts not only one area, but also every
other area of your finances as well.
Coordination is key. No matter how dire the
situation, there is always a path out. Most of
us need someone to help us find that path.
Is it too late to set up a valid plan?
I think there’s always a way out. Whether
you’re an individual or a business, you need
to reassess your goals and objectives, take
stock of where you are right now and what
challenges you’re facing. This is a good time
to meet with a competent planning professional who can help you analyze your situation and show you different alternatives.
You’ll find that every decision you make can
impact other areas. Sometimes you need
someone to stand back and help you look at
the whole picture to make the right step.
Each financial decision is interrelated and
what may look like the right move in one area
may negatively impact other more important
things and endanger your plan’s success.
Are there certain moves that investors should
avoid?
There’s always the ‘plan d’jour,’ depending
on what’s going on. For the most part, the
things that made sense 25 years ago make
sense today. We’ve always stressed protection and worst-case-scenario planning.
Hopefully clients who have followed that
advice are feeling confident that they can ride
out the storm.
It seems in the past few months, many
investors were saying, ‘Let’s just get to the
election and see what happens when we get
a new leader,’ and then, ‘Let’s see what happens when the new President is in.’ Sooner or
later we all have to face facts and look at our
current situations and decide on the right
path to follow.
How will this economy affect future planning?
You always think the crisis that you’re in
now is unlike anything else that’s ever happened in the past. Although we are in a different economic circumstance and probably
a fairly deep recession, we’ve had recessions
before. We’ve had wars, depressions, terrorist attacks and financial crises in the past.
Everyone should understand that, going forward, we’ll see innovation, we’ll see growth,
and we’ll see prosperity. The United States
of America is not going out of business. I
don’t know where the market is going to be
six months from now, but five years from
now, expect it to be much higher. Investors
will have made solid profits and entrepreneurs will have started new companies.
People will have jobs that haven’t even been
invented yet.
In order to understand the effects of your
financial decisions, streamline costs and plan
for your future, you need an organized and
integrated view of your financial decisions
across your business and life. This will help
you maximize protection, minimize costs
and provide an impenetrable barrier to protect your business and personal assets.
What changes can be made right now?
Get organized. Get protected. Get focused.
You have to know exactly where you stand
and what challenges you face in order to
develop a solid plan. You need to make sure
all your protections are in order, that your life
and your income are protected. You want to
take a close look at cash flow — how do you
reduce debt, increase savings — to put yourself in a position where you can come out of
this stronger. Having an integrated view of
your financial world gives you control over
your progress in meeting your business and
personal wealth building goals.
For high net worth individuals, this is a very
good time to implement some estate planning strategies because of the decline in market values and assets. It’s a good time to
make sure that your wills and estate documents are up to date. You may have had a
strategy based on something that’s not valid
anymore, so it’s a very good time to look at all
of your tax and estate planning. Whether you
are looking to grow, sell, retire or leave a lasting legacy, having a plan that ties it all together will make it simpler for you. Investors can
learn more from us in the months to come
about how to thrive in each of these scenarios — even in uncertain economic times.
BOB MATHIS is the CEO of Peachtree Planning Corporation. Reach him at (404) 260-1600 or Robert.Mathis@peachtreeplanning.com.
