Investing for Couples
At the Goff Financial Group, we specialize in helping affluent couples re-establish lines of communication. Couples comprise the majority of our business. We listen. We evaluate each partner’s unique financial goals and concerns. Then, once we establish a common ground, we help build a customized path to prosperity that meets each partner’s unique needs.
Your comfort level is the foundation of successful money management, whether as an individual or as a couple. To strengthen that foundation, we offer three ways to help you maintain, improve and sustain your current lifestyles:
1. Since spouses will often differ in their views on money, particularly spending, we can address different spending habits that may undermine both your relationship and lifestyles;
2. We help couples resolve different comfort levels with investing in a way that doesn’t undermine the chances of earning sufficient returns to achieve their lifestyle goals; and
3. We’ll help ensure that important financial decisions are made mutually, not unilaterally, avoiding the emotional burdens and poor communication that can otherwise result.
Fundamental Approach – Investing for Couples
It takes two. To achieve long-term financial success, you must be comfortable with your investment strategy both individually and as a couple. We find that common ground, and from there, we apply our proven strategies and set out for that common goal.
Value Investing. One component of our time-tested strategy is investing in various stocks, bonds, and exchange-traded funds consistent with our clients’ financial comfort levels. Applying our proprietary financial models, we calculate fair-value estimates based on a series of assumptions regarding the anticipated growth of the investments. From there, our decision to buy or sell is driven by our goals of reducing investment risks while increasing long-term returns.
Asset Allocation. Rounding out our strategy, we reduce risk by diversifying our client portfolios across various asset classes. Our asset allocation strategies help our clients build long-term value while reducing their risks. By combining our value-based approach across a variety of asset classes, we can help our clients achieve greater growth and income with less risk.
Communication is key. Couples deserve to know how and where their money is invested. To this end, we select investments that are by nature transparent, including individual stocks, bonds, and exchange-traded funds that mirror specific market indices. And we provide timely, informative, and easy-to-comprehend reports to apprise our clients of their holdings and performances.
As your advocate, we look for companies with strong competitive positions, transparent accounting policies, and management that places shareholders’ interests first. Our criteria include:
- The company’s competitive advantage and if this advantage is sustainable long-term;
- Any favorable (or unfavorable) demographic and international trends for this company;
- Any past actions taken by management deemed favorable to shareholders;
- Current policies favorable to shareholders;
- The company’s growth prospects over the next five to ten years;
- Any unique risk factors to this company and/or its industry;
- Any impact higher interest rates and inflation would have on this company; and
- The firm’s current market price compared to its fair-value estimate.
One destination. Often, both partners have demanding careers that leave little time to address personal financial matters. We take the time to analyze the goals, objectives, and circumstances to construct a portfolio that meets their specific needs.
This approach is called goal-based investing, which recognizes that investors have multiple goals and circumstances, and their goals evolve or change over time. Age and life expectancy are two key factors that should drive those investment decisions, as they determine the investment time horizon—the amount of time the couple intends to hold an investment. The more time they have, the more risks they can afford to take.
By developing a diversified portfolio emphasizing value and income, we can help maximize those potential returns by prioritizing financial goals and risk tolerance with the investment time horizon. And because that horizon changes, we’ll periodically re-evaluate to meet your needs.
Accommodating complex needs. Affluent couples often have special needs such as highly complex estates, philanthropic causes, and preserving and passing their wealth to future generations. The Goff Financial Group specializes in wealth management advice for couples, providing all of our services on a fee-only basis, ensuring objectivity with no conflicts of interest. Our services include:
- Comprehensive financial planning
- Professional management of personal portfolios, IRA and retirement assets, trusts, and foundations
- Independent advice on employee benefits, including 401k plans, deferred compensation plans, and company stock options
- Tax-efficient investment strategies
- Integrated financial strategies that coordinate the full value of company-sponsored benefit programs with our client’s overall financial situation
- Investment recommendations for deferred compensation plans and company retirement plans that complement other investment accounts
- Managing or diversifying a portfolio concentrated in company stock
- Preparing for and executing the sale of company stock under SEC Rules 144 or 145
- Stock-option strategies for the exercise of both nonqualified stock options and incentive stock options
- Planning and structuring personal finances in anticipation of a corporate merger or sale
- Financial and investment planning in advance of a public offering
- Coordination of services with our client’s CPA, estate attorney, and other tax and legal advisors
Maintaining your lifestyle. We understand retirement planning and the concerns surrounding it. What are your definitions of financial security? How much will you and your partner need to maintain your lifestyles without outliving your assets? Will you need to provide for another dependent’s financial or educational needs? Will you have enough to cover unforeseen events or expenses?
Factoring in retirement income, healthcare expenses, Social Security, and estate planning, we can put together a comprehensive strategy structured specifically for your unique income needs, risk tolerance, and long-term financial goals. We even include a Probability of Success Analysis, which calculates the likelihood of achieving your goals and provides steps for dramatically increasing those odds.