H eadlines
Few Things Are
Perfect, Including
Investments F INANCE
JOE BONFANTI | JE FEATURE
HAVE YOU NOTICED how
the word “perfect” has crept
into our lexicon?
Someone asks you a ques-
tion and when you reply, the
reply back to you is “perfect.”
And that seems a little much
given that most replies are not
perfectly exact. Answers may
be great or wonderful or excel-
lent, but perfect? Hardly ever.

A perfect game pitched in
baseball — 27 up and 27 down
— qualifies. A hole-in-one in
golf — also perfect. A presenta-
tion to the board? Maybe it was
really good. But no doubt there
was some slight imperfection.

Which brings us to the per-
fect investment. Invariably not
a week goes by that someone
does not call me seeking the
perfect investment. I think I am
an outstanding financial profes-
sional, but I have yet to find any
client or prospect the perfect
investment. And for one simple
reason: It does not exist.

• Always available: There will
be 100 percent liquidity with
complete access to redeem
all or part of the investment
at any time without penalty.

• Easy as pie: It will be an
investment anyone could
manage at any time without
having any special financial
knowledge or training.

The age-old advice for some-
one who comes across an invest-
ment with all these attributes: If it
sounds too good to be true, it is.

However — and be glad there
is a however when doing due dili-
gence — asking certain questions
will help you to focus in on the
alternatives and aid in making the
wisest investment choice given spe-
cific financial needs. For example:
• What is the purpose of
the investment? This is the
most important question to
ask and the answer should
be as specific as possible.

• What is your risk tol-
erance? Will you be able
sleep whenever the markets
suffer a hiccup, or do you
The proper mix of investments and insurance will
help you meet many of life’s financial needs.

Here is a list of what a perfect
investment might look like:
• No risk: No part of the
investment could ever be
lost due to market activity
or any other reason.

• High rate of return: The
yield outperforms inflation
and taxes while still giving
you a solid return.

• No income taxes: There
will never be any income
taxes due on the investment
growth with the client keep-
ing all that it earns.

JEWISHEXPONENT.COM have the ability to ride out
short-term ups and downs
in exchange for potential
long-term growth?
• When will you need the
income you expect the
investment to generate?
Simple, right? A short-term
investment to meet long-
term goals, and vice versa,
is a recipe for disaster.

• What amount do you have
to invest? Your financial
professional can recommend
various options based on the
sum you have to invest.

the S he’arit H aple’atah
A rchive
To be included in
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Places and dates vary although mostly Eastern
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• Are income taxes a con-
cern? Different investments
offer different tax treatments.

Your tax bracket plays a part
in this question as well.

• In what state is the econ-
omy? This is last on the list
because the economy’s cur-
rent (and future) condition
is out of your control. But it
must be taken into account
JEWISH EXPONENT
and is another topic to be dation that includes the proper
considered when meeting mix of investments and insur-
with your financial adviser.

ance — including life, health,
disability income and long-term
So there you have it — attri- care — will help you meet many
butes to seek and questions to of life’s financial needs.

ask. Unfortunately, you won’t
Even without the perfect
find the perfect investment.

investment. l
But asking the right ques-
tions about your financial needs, Joe Bonfanti, CFA, works for the
and building a financial foun- 1847 Private Client Group.

JANUARY 17, 2019
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