“I am 79 and widowed. Since I lost my husband six years ago I have been working with the financial advisor he picked for us when he was alive. I wasn’t sure I wanted to stay with him, but we work really well together and he understands me.
My question is really from my son. He was with me at my last meeting in my advisor’s office. My advisor reviewed my investments like he always does. He recommended a couple small changes, but nothing big.
My son asked him about the money I have in the bank – it’s a lot – over $100,000. My advisor said that he and I had talked about that and that was my cushion and should stay in the bank.
My son wants to know if that was the right answer and if not, where should my advisor have said to put that money?”
The reason this question is interesting to me is not because the answer is complicated. It’s not. This is interesting because of all the right things that are going on here.
You’ve got a financial advisor who understands you and works with you well. You have a son who cares enough to take the time to go with you to your advisor meeting. You have an advisor who is more interested the right answer for you than he is about making more money for himself. These are three very right things.
Your advisor seems to understand that the money you have in the bank isn’t there for the interest it may (or likely right not – may not) earn. It is there to provide you with peace of mind. It is there to absorb the shocks that come from time to time. It is there to give you comfort and confidence. He understands that these benefits – for you – outweigh the potential gains you might see elsewhere.
You’ve got a good financial advisor there. And a very good son, as well.
Gene answers your neighbors financial questions on More than Money.
Send in your concerns: Gene@AskMtM.com