Financial planning discussed at luncheon

Greg Powell said he is always aware of a client’s time. After all, we all have 24 hours in a day, and we all choose how to invest or spend it, he said. It’s the same with money. As a financial planner and the president/CEO of Fi Plan Partners, Powell’s objective is to help everyone plan for the future.

During the Homewood Chamber of Commerce luncheon on Oct. 16, Powell addressed some of the questions that surround financial planning and what his job entails. The main idea, he said, is to ask the right question.

“If you had to choose between your money outperforming the S&P 500 Index, or your money achieving your dreams and goals, which hand would you pick?” he asked. Most, if not all, would always pick the dreams and goals option, Powell said.

To make your money and earnings meet your dreams and goals, Powell said you need a plan, and one that works for you.

In past years, Powell has taken a financial planning model originally designed for the wealthy and “democratized” it. Together with the other professionals in a person’s life, he works with the finances, dreams and goals to create a plan for the future. He called it the “financial house.”

The financial house looks at all of the aspects of a client’s current and future life, such as legacy, wealth, family responsibilities (both current and future) and estate planning, and builds upon the relationship between them to prepare for retirement.

“In retirement fulfillment, you would be amazed at how many people I meet with that once they get to retirement, they’re not totally fulfilled,” he said.

Having that conversation, Powell said, or at least making that conversation easier, is something addressed in his book, “Better, Richer, Fuller.” He wanted to make it easier for people to talk with their families about financial planning and planning for the future, which could include taking care of aging parents or in-laws, he said.

At of the end of 2017, Powell said 19 percent of Millennials and 12 percent of Baby Boomers did not have any money invested in the stock market. Another 59 percent of working-aged Americans had not set aside any money in a retirement account. 

Powell said the population of the U.S. has doubled since the 1960s, but Americans are also living longer. Most of those in the senior community noted that medical costs at their age have been higher than they anticipated. The majority of seniors who file for bankruptcy, Powell said, do so due to medical fees. 

Financial planning can help people make sure they are on track for where they want to be upon retirement, Powell said, and can even help with career transitions — similar framework can be applied to both.

Finally, Powell addressed the current financial climate, specifically looking at the third quarter of the stock market and volatility. The third quarter of the market is typically the weakest of the year, he said, and during election years the market can drop 18 percent on average, regardless of which political party is in power. 

“I have to say there’s no guarantee, but at the same time, these are things that we track to understand in relation to the person’s plan, and their portfolio, their 401k,” he said. 

Powell also said consumer confidence is currently up, and the U.S. “is winning the tariff war.” While there is some “noise” surrounding the discussion of the imposed taxes, he said, “the numbers are speaking for themselves” and the tariffs are contributing to inflation.

The next Homewood Chamber of Commerce Luncheon will be Nov. 20 at The Club and will feature Graham C. Boettcher, the R. Hugh Daniel Director at the Birmingham Museum of Art.