FAQsFrequently Asked Questions
Since 1966, we have helped guide families to successful outcomes for retirement, a child’s education, and have helped them eventually pass a legacy on to their children. Our experience and our sense of purpose as well as community is something our clients can depend upon.
Why should I work with an investment professional?
Over the years, that question comes up, especially when the stock market is high and it looks like returns are easy to get by simply being in stocks. But time and time again as the business cycle rises and falls, the experience and knowledge of a trusted, independent advisor with market and research insights, can bring discipline to a portfolio when emotions, be they greed, fear, or doubt, inevitably take over the decision-making process. We also devote many of our resources to current research to bring better ideas to our clients.
Retirement is a long time away from me, so why should I start saving now?
You are rich now in time, so you want to use that time because it is one of your most precious resources. The power of compounding interest can really take a smaller amount of money over a 30-year period and grow it to a much larger amount of money. Both Warren Buffet and Albert Einstein themselves have commented on the miracles of compounding interest.
“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it” – Albert Einstein
How can I save early in my career for retirement when I am on a tight budget?
Pick something comfortable, if it is $25 a month or even $15, and save what be it at a credit union or a mutual fund that will accommodate low minimums. $25 a month is $300 a year. If you cannot make a goal within the year to save for retirement, reduce expenses by simultaneously increasing your income. Stay in touch with an advisor so that when you are truly ready, you can take action immediately. Don’t be content not to save for retirement and don’t put it off. Become a saver.
How much can I withdraw from my retirement savings during retirement and not run out of money?
Studies and experience tell us that anywhere from 4% is a reasonable withdrawal rate. If one assumes a higher interest rate, 6% has worked based on market conditions over a multi-decade period and the right investment selection. Please consider that a 6% interest rate is an assumption and not guaranteed by LaBrunerie Financial.
Why is asset allocation so important?
Different asset classes have different levels of risk and return, so constructing an allocation model using the risk-returns of each asset class, for instance bonds might be seen as less risky than stocks, can be represented in the portfolio and offer protection during the down years when the stocks are not doing as well. Stocks zoom ahead in the positive years, leaving the low risk assets behind. Allocating correctly can help reduce volatility and the negative emotions that come from it.
How does LaBrunerie protect my privacy and personal information?
Our privacy agreements and policy are on our website and we take confidentiality very seriously.
What is the difference between saving and investing?
Saving is the first step to just committing to paying yourself first and accumulating assets, for it is rooted in the virtues of thrift. Once one becomes a saver, they can then become an investor by taking more risk and learning about other investment options. First be a saver, and
Why should I start investing?
When you are very young, even at age 25. For instance, if one saves $150.00 a month up until they are 65 and earns a 6% interest rate on their money, the value will be over $280,000, generally speaking. That money can be used for retirement income. If it is not saved and invested, then that money will not be there; this is why probably 50% of the public in our country now has very inadequate retirement accounts. Please consider that a 6% interest rate is an assumption and not guaranteed by LaBrunerie Financial.
What are some basic guidelines for investing?
For retirement and or investing, finding a balance between stocks and bonds based on your personal risk objectives and endurance is very important. Saving monthly is the most important thing one can do if he is saving for retirement at a young age. Americans now can live well into their nineties, so the retirement equation becomes even more elongated as life expectancies expand. Just as one may change his oil in their car twice a year or more, they should also be monitoring their personal wealth at least twice a year with a trusted advisor.
When should I start saving for a child’s education?
Preferably before the child is born, if not soon after. Educating the next generation is the most essential building block of civilization.
Why should I rebalance my account?
Rebalancing will negate some of the imbalances that occur if one asset class such as stocks post above-average returns in one year. The rebalancing process soothes out these ups and downs in the markets and leads to a steadier return by reducing the risk when one asset class gets overrepresented in a person’s holdings.
How can I make changes to my account?
You can make changes to your financial account(s), including email address, mailing address changes, by calling us and requesting the updates.
How can I set up automatic investments?
You can set up automatic investment withdrawals from your banking account(s) to your financial account(s), by calling us and requesting the automatic setup.
How do I obtain my financial information?
You can call us and request your financial information through our secured network.
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601 W. Nifong, Suite 3B
Columbia, MO 65203