In the investment and financial world the right questions often provide clear answers. Personal and specific perspective, knowledge, and attitude towards investing one’s money vary from person to person. Gain insight into your own investment situation by pondering the following questions. The exercise may help you when considering DeCamilla Capital as your money manager.
Questions To Ask Yourself
Income Sources & Income Reliance
- Am I currently relying on my investment portfolio for current income and/or capital appreciation?
- Do I, or will I have an employer-sponsored pension? If so, does it have a cost-of-living escalator provision?
- Do I expect regular increases in my medical insurance premiums? At what rate?
- How long do I plan to be employed?
- Do I take federal and/or state tax deductions for my investment-related expenses? Can I easily determine my investment account costs and fees?
- Am I surprised annually by the tax reporting and tax liability for my portfolio? Do I have any flexibility and influence as to when capital gains are booked?
Investing & Investment Portfolio
- Do I know the annual dividend yield of my portfolio? Do I know its rate of dividend increases? Do I know the total annual dividend income?
- Do I know what my Required Minimum Distribution (RMD) is for my Investment Retirement Account (IRA)?
- Do I understand the difference between a portfolio current yield and its total return?
- Do I have capital tied up in non-performing or illiquid investments? (e.g., private partnerships, non-traded REITs, annuities, hedge funds )
- Do I have a personal investment philosophy? Do I see a glass as “half empty” or “half full”?
- Is my current capital enough to retire on? (i.e., at a reasonable rate of return and withdrawal will my capital base support my lifestyle?)
- Am I considering retirement but not sure how to best achieve regular income from my investments?
- Would an adverse outcome in any one of my investments affect my lifestyle?
- Am I receiving adequate and sustainable cash flow from my investments?
Money Manager and Investment Management
- Do I receive multiple account statements from multiple investment management sources? Do I understand them?
- Can I readily obtain the annual rate of return on my portfolio from my investment management firm? Can I easily access my portfolio account balance sheet and income statement?
- Is my money manager someone I can call directly when I have questions or concerns? Is he/she bound by a fiduciary standard?
- Do I have an adequate understanding of the capital markets and where my investment advisor is in the “financial food chain”? Is he/she bound by law to act in my best interests?
- For pension trustees, conservators, and fiduciaries in charge of not only their own money, but other individuals’ money as well. Do I have a trained and experienced professional I can rely on for unbiased (unconflictive) advice and responsible investment leadership?
- Do I have a written Investment Policy Statement?