Growing up with a family winery, I naturally adopted an appreciation for wine and wine making that evolved into being both a critic and a connoisseur. Our family’s wine is made like the families of centuries ago in Europe, grown in virgin soil never before used for agriculture. Pure natural winemaking from clearing the land, planting the vines, reaping the harvest, fermenting, and aging with precision, and then bottling onsite. All within our control, every aspect, to assure the best quality and taste for discerning palates.
Now as a financial advisor, I have noticed many similarities between the meticulous attention to details and process of winemaking with the process of financial and wealth planning. Our approach to financial planning and blog is entitled Pure Perspective to pay tribute to a pure process. In this second installment of our blog, I will share how the process of winemaking over generations is similar to how it is best to approach financial planning.
In the Beginning – Values & Root Stock
Many people believe that wine begins with seeds planted into the earth. The reality is that it starts with root stock. Good root stock is realized from years of tasting, research, production and learning along the way. The same holds true for a financial plan. Your financial plan should be rooted in your values. What is important to you. What impassions you. What drives you. What brings you contentment. What makes you feel like you are living true to what you and your family stand for and live for.
We as financial advisors are not here to plant seeds. We are here to guide you towards your goals rooted in your values. When your financial plan is based on what is important to you, it brings a deeper level of foundation from which you can build and grow. It is also more meaningful; hence you are more likely to follow your plan, do what is necessary, and be committed to the process.
In the beginning, just like in winemaking, you must be patient, nurturing your plan just like a vintner nurtures the crop.
Accumulating – Healthy Harvest
A vineyard’s healthy harvest does not just happen overnight. There are many volatilities that can wreak havoc on the desired crop -- bees, wasps, birds, drought, flooding, to name a few. The same holds true with financial planning. One only needs to follow the stock market to know this to be true. However, the stock market isn’t the most volatile aspect to a financial plan. Life is. Unexpected life events and transitions, from blessed occurrences to unexpected turmoil can all have an impact on your desired financial end game.
The key to accumulating wealth in your financial planning is through diversity and versatility in your holdings. Just as a healthy vineyard has varietals of grapes and wine, so must a healthy financial plan have multiple buckets of earnings and assets. Too many people put all their eggs into one basket … a 401(k), an expected business valuation, a real estate holding, to name a few. By doing this they are creating risk and limitations they didn’t realize they were creating.
Just as a vintner watches over every stage of the crop as it grows and matures, so must a financial advisor in unison with you.
Supplementing – Pairing & Paring
Pairing wine with the right foods is similar to pairing your financial needs with your lifestyle goals. If either are out of sync, it leaves a bad taste in your mouth. Staying true to what is important to you, and not leaping into options just because someone else you know is doing it, is what being a steward of your financial future is all about. We can be your sounding board and voice of reason when those bright shiny objects of financial opportunity are enticing you off your path, to help you determine what makes sense for you and your family.
In the supplemental years, after retirement, there may also be a paring of what is no longer necessary, similar to trimming away the excess growth of a vine to ensure a more robust cluster of grapes. It could be expenses that you eliminate, or it could be downsizing your residence. Whatever you may simplify leaves room for other areas of your life to prosper.
You can continue to grow your assets while in retirement and not just deplete them. This is where a financial advisor can keep you informed on your options.
The most important aspect of wine making and financial planning is that, in both cases, it takes a team to research, monitor, cultivate, manage, nurture, allocate, preserve, and distribute. I raise my glass to the privilege of serving the many generations of clients we have guided.
May your harvest be truly representative of the fruits of your labor. Cheers!
Matthew Hudack, CLU, ChFC
P.S. To learn more about our family winery, go to www.majorcavineyards.com.
This communication is for informational purposes only and does not purport to be a complete statement of all material facts related to any company, industry, or security mentioned. While not guaranteed as to accuracy or completeness, the information provided has been obtained from sources believed to be reliable. The opinions expressed reflect our judgment now and are subject to change without notice and may or may not be updated. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. This notice shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which said offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of any such state. The newsletter from which this article was taken was initially prepared and distributed to our valued clients and industry partners. Readers who are not market professionals or institutional clients of Financial Synergistics Group, Inc. should seek the advice of their financial advisor before making any investment decisions based on this communication. Additional information on any securities mentioned is available on request.
Welcome to our Pure Perspective blog, designed to provide insights, information, and options for you to consider whether you are beginning your financial journey, accumulating wealth and assets, or supplementing in your retirement years. Through decades of serving multiple generations, we have served as a sounding board, a guide, and advisor when critical decisions needed to be made.