Investment Planning

It seems everybody’s investing these days, but I don’t know where to start. I’m afraid it’s too late. It’s never too late. The best place to start is to ask a consultant to review your needs – and ask you a lot of questions. Everyone’s needs are different, and what suits your neighbor may be wrong for you. Why do I need a broker or an advisor? I can handle my own investments on the internet. That is true. Some people can and do handle their own investments, and do it very well. Expertise, confidence, desire to learn and research their own investment ideas play crucial parts in the success of the do-it-yourself investor. If you are one of the small percentage able to handle your own investments, more power to you, and good luck! On the other hand, if you are one of the large majority who prefers some help, you are the kind of person we are dedicated to serving. We have found that, even with 401(k) plans in which employees may choose their own investments, they usually ask us to choose their investments for them. Why is it that most brokers sell mutual funds and variable annuities? Is that what is best for me? Our industry calls these packaged products. They pay the investment broker the largest commission. Valid arguments can be made for their use. But there are just as many reasons the investor could do better buying the individual securities, a stock by itself, or a small portfolio of stocks or exchange traded funds – and save a pretty penny in commissions in doing so. How are you different from every other advisor? Doesn’t everyone offer pretty much the same thing? Yes, we do offer many of the same investments as other advisors. Which means that types of investments are not necessarily the differentiating factor. Experience is more important. Let us explain. Many new brokers have never been through a bear market, that is, one with a downward trend. This is where the rubber meets the road. Most investors can do well in a bull market. In a bear market, asset retention is the name of the game, and experience can make the difference. Also, since we are investment advisors and are able to operate independent of our broker dealer. We do not have production requirements and we offer general securities than packaged products such as mutual funds or variable annuities. But won’t investing affect my tax liability? If you are successful with your investments, yes. Be prepared to pay the price of increase tax liability to participate in the market. If you make more money, you have more money to pay taxes. Can I lose money in the stock market? In the bond market? Aren’t there guarantees against that? You most certainly can lose you money in both the stock and the bond market. There are no guarantees, and the risks are real. True, some investments such as savings accounts and CDs are insured by the FDIC, fixed annuities are guaranteed by the insurance company offering them, and Treasuries are backed by the full faith and credit of the United States of America, but there is a trade off on rates of return. In other words, the lower the risk, the less you can expect to gain (or lose). And it’s not illegal to lose money! Your advisor can only advise and guide. In the banking crisis of the late 80‘s, people lost money in what appeared to be the safest of investments; real estate, CD’s and their own businesses. Unfortunately, many of them had not diversified their investments, resulting in significant losses for a large group of investors. This is why gauging your risk tolerance is so important. You must be truthful to your advisor and to yourself while answering the questions on the risk tolerance questionnaire. It seems people are scared to death to invest anywhere these days! I do not know what to do! We now live in a society of information overload, internet rumors, news hype and spin. Many people enjoy the adrenalin rush of fear. At Callaway, we seek realistic long term solutions and strive to not allow our clients to be caught up in the misinformation and the adrenalin rush. The Callaway Approach To provide responsible investment advice, Callaway Financial Services performs in-depth consultation individually with every client. Your investment goals, your tolerance for risk, your ideals and values – we consider all those factors when we design an investment program. We’ll help you understand the advantages and disadvantages of the various types of investments and show you how to make choices that minimize your risk for the greatest return. We’ll help you develop your investment portfolio from various options, including:

  • Stocks
  • Bonds
  • Mutual Funds
  • Variable Annuities
  • Variable Life Insurance
  • Exchange Traded Funds
  • Motifs
  • CDs
  • Fixed Annuities
  • Treasury bills, notes, bonds
At Callaway we prefer to use individual securities. But based upon a client’s needs and total amount available to invest, we do use packaged products such as mutual funds and variable annuities. The Callaway Approach involves investing as our clients invest. We do not recommend investments we are unwilling to invest in ourselves. We have discovered that this unique approach makes a difference and compels us to set a high standard of responsibility for our client’s resources. Contact us today to discuss an investment plan that supports your goals- and moves you closer to your dream.
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