Financial Tip of the Week: Why You Should Individualize Your Financial Plan

The San Diego Entertainer’s own financial expert, Steve Sexton, shares his financial expertise with our readers.

Last week on the segment, Sexton discussed the importance of moving from a bond portfolio to a value portfolio, also known as a dividend portfolio. When looking at a dividend-paying portfolio, it is important to pay attention to three essential elements: value, safety and timing.

This week, Sexton discusses the importance of individualizing your own financial plan, especially prior to making serious financial investments. Sexton says that often many people make financial decisions without individualizing a plan for their specific needs and that can be quite costly.

In one case, Sexton describes the heavy financial fees one man faced when reinvesting after a divorce. Under his bank’s advice and without any questions asked, this man decided to move his money into the suggested investments and he did not take the time to consider how these particular investments would work into his own individual plan.

This decision ended up costing him $63,000 in taxes because of the long-term capital build up and $35,000 in fees from front loads in mutual funds. If this man would’ve asked the right questions prior to making these investments he could have avoided all of the taxes and fees and Sexton says that if this man would have taken two years to roll out the investments, he could have paid zero dollars in taxes. He also could have used an institutional platform and avoided the fees from the mutual fund, and in the end avoided almost $100,000 worth of loss in fees.

Sexton emphasizes the importance of individualizing your own financial investments to fit your particular needs by speaking to a financial expert for advice before making significant investment changes. Sexton and his advisory group can help. Check out their website, call, or attend a free workshop for more information.

Steve Sexton is a financial expert who personalizes each individual’s financial plan on their unique circumstances and goals. He has over 15 years experience in the financial services industry and holds multiple licenses and designations including being a Better Business Bureau member and a National Ethics Bureau Member.

If you would like to learn more about securing your financial wealth and freedom, planning for your retirement or to reserve a spot in one of Sexton’s free financial workshops you can visit www.sextonadvisorygroup.com. Or you can reach the Sexton Advisory Group by contacting Steve Sexton at [email protected] or by calling 951-695-8810.

Don’t forget to watch Steve Sexton on the Channel 6 San Diego Living every Tuesday for more financial tips!