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	Managing Your Money

	an interview with Aaron Farnsley

This is an interview with financial planner Aaron Farnsley -- with tips for making the right business INVESTMENTS for your company.

Q: TELL ME ABOUT YOUR FINANCIAL PLANNING SERVICES.

A: I am INDEPENDENT investment advisor. As an independent advisor, I offer investment plans from most of the major companies in the industry. Because I represent many different companies I can recommend the most appropriate investment based on my client's needs and OBJECTIVES. That's important, because you don't want to feel as though you are being pushed into buying a particular company's product when you are trying to plan for your future. You want to work with someone who is interested in your financial well-being, not making a COMMISSION.

Q: WHO IS YOUR TYPICAL BUSINESS CLIENT?

A: My typical client is a small business owner with less than 25 employees. I often provide guidance with the design and implementation of company-sponsored employee BENEFIT plans -- which allows the company to maximize its tax deductions while helping employees save for a comfortable retirement. I might also assist the owner with the management of his or her personal INVESTMENT portfolio. My ability to approach financial planning from both sides -- business and personal goals -- offers a great benefit to my clients.

Q: WHAT IS YOUR FINANCIAL PLANNING PHILOSOPHY?

A: My financial planning philosophy consists of three parts: knowledge, service, and customization. Most people don't have the time or the KNOWLEDGE to stay on top of the latest trends in the market -- so I continuously research recent developments in financial planning. This includes learning about new investment products that may better fit my clients needs or new types of retirement plans that may allow for a greater income tax deduction. I also stay in touch with my clients to keep them informed about their accounts and changes in the market -- especially during turbulent times in the market. A good financial planner not only advises his or her clients about where to invest, but also helps them UNDERSTAND how the market works. The final component of my financial planning philosophy is CUSTOMIZATION. Just as one shoe does not fit all people, one financial plan does not fit all people. The best plan is one that is designed to address the specific needs, objectives, and risk tolerance of the client.

Q: HOW DO YOU GET A CLIENT TO PLAN FOR THE FUTURE?

A: I usually find it works best to simply talk with a client -- I believe that it is important to listen to a client to determine what their GOALS are and develop a sound plan that they are comfortable implementing. I discuss the client's long-term and short-term objectives, expectations, tax situation, RISK tolerance, and past investment experience. Once I feel that I have a good understanding of these factors, I can then formulate an investment plan. But I work together with my clients and always ask for FEEDBACK. Sometimes a plan will go through several incarnations before we hit on an agreement that is both financially sound and meets the specific needs and comfort level of the client. It's only when a plan meets both of these criteria that a client is going to stick with it and feel good about his or her decisions. And, of course, I am happy to help my clients make ADJUSTMENTS as their objectives and situation change. That's what good financial planning is about -- monitoring and adjusting to suit the client's needs.

Q: WHAT IS THE BIGGEST INVESTING MISTAKE YOU SEE?

A: People often just don't have a GAME PLAN. Many people invest in a very REACTIVE way throughout their life -- buying stocks on a tip and pulling out when things get risky, listening to what friends are doing, being swayed by market ups and downs. However, they have never considered what their ultimate goals are, the tax implications or their investments, or how these investment work together. The key is to have a plan and stay with it over the long haul.

Q: HOW DO YOU HELP CLIENTS STICK WITH THEIR GOALS?

A: I receive a copy of all my clients statements and I continuously MONITOR their investments to see how they are doing in the market. I routinely contact my clients to make RECOMMENDATIONS based on changes in market conditions or as their financial situation changes. I also formally meet with clients twice a year to review their objectives and portfolio performance. A good financial advisor is never too busy to meet with a client.

Q: ARE THERE ANY FINANCIAL PLANNING GOLDEN RULES?

A: Yes, DIVERSIFICATION. As the saying goes, "don't put all of your eggs in one basket." The recent dramatic downturn of technology stocks has reminded many people not to focus too heavily on one segment of the market. Investors should have investments with different objectives that focus on different SEGMENTS of the market. I also believe people should be diversified into owning investments other than just domestic stocks. For example, it is wise to own some bonds, some international mutual funds, and possibly other assets such as Real Estate Investment Trusts.

Q: ANY ADVICE FOR SOMEONE WHO IS JUST STARTING?

A: The most recent market downturn has scared a lot of people into not taking any sort of action. However, people forget that the basic investing philosophy is to buy low and sell high. You could view the current financial markets as having a "30% off" sale. So don't let current market conditions be an EXCUSE not to develop and implement a sound financial plan. Although the financial markets may or may not drift lower, it always comes back up again -- and over time, will continue to grow. So get in there as soon as you can and make investing a regular HABIT!

Aaron Farnsley is the President of Farnsley Financial Services. He is a Certified Financial Planner, Chartered Financial Consultant and has an MBA in International Finance. You may contact Aaron at 888-562-4979 .

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