The Retirement Planning Group

Why the P.R.E.P. Process?

WHEN IT COMES TO BUILDING A HOUSE, the first place to start is fairly obvious. You need a plan or a blue print. Having a plan is crucial. It helps you envision what your home will look like. It will also give you direction and a timetable for completing it. Most importantly, it will help you outline exactly what materials to purchase to fulfill your dream. For example, three cubic tons of concrete for the foundation, 2000 2x4s for the frame of the house, 3000 square feet of 50 year composite roofing…you get the point.

You would never start purchasing building supplies before you had a plan, but unfortunately, when it comes to building investment portfolios, many investors have taken the opposite approach. Over time, or through the advice of a stockbroker, they’ve managed to purchase a “little bit of this and a little bit of that”. In short, investors have created Franken-portfolios (investment portfolios bit-and-pieced together).

When it comes to building an investment portfolio, the same principles should apply as those used to build a house. Envision your goals. Develop a plan. Identify the materials (investments). Build the foundation and then perform on-going maintenance to try and make sure it will last for years to come.

If you are within 5 years of retirement and find yourself without a plan, The Retirement Planning Group’s proprietary P.R.E.P. Process may give you the answers you are looking for.