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Rethinking Your Financial Plan
Ron Maxwell and his wife had "the big talk" while driving the back roads near their home in Stow, Massachusetts. Troubled by the poor performance of their investments, Ron suggested they might need professional help. Days earlier, he had sold bonds to cover part of the cost of college tuition for two of their three children instead of using stocks he and his wife had been counting on. "I looked at our investments and realized I no longer had a clue," says Ron, who works at a local software design company. "Our old strategy wasn't cutting it."Today the Maxwells, both 47, are focused on protecting what they make and save rather than taking big risks with their money. Ron's wife, Starr, a full-time mom, says, "I've learned you no longer can afford to be lazy and let your money take care of itself."
Like the Maxwells, many people are taking steps to halt erosion of their savings and rethink their financial plans. Once confident in their decisions, many people aren't sure what to do to maximize returns in light of stock market fluctuations, new tax laws, low interest rates and skyrocketing real estate values.
"On an emotional level, people are petrified of making a mistake and losing more money," says Denise Hughes, a financial counselor in San Carlos, Calif., who has a master's degree in psychology. "The do-it-yourself investor of the 1990s is more comfortable now doing nothing."
But doing nothing isn't better than doing something smart, especially as college, weddings and retirement loom. Read on to see what financial advisors are recommending to their clients.
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