Stan Molotsky has been in the financial services industry since 1958, which means it’s not hyperbolic when he says that he’s seen it all across those nearly seven decades.
So it carries a great deal of weight when he notes just how unusual these modern times and their influencing factors are. Take, for example, an upcoming presidential election that admittedly affects consumer behavior more than it impacts macroeconomic outcomes, but is still creating waves of unpredictability when it’s already hard enough to venture future projections.
“If you look at history—and you really shouldn’t because this is a totally different phase that we are in, to have two totally different [presidential candidates] running for office with different backgrounds—the markets tend to balance all this out and adjust accordingly. They do tend to go in a positive direction over longer periods of time. This election, though, is different,” says Molotsky, president and CEO of The SHM Financial Group, a full-service retirement planning firm. “There’s a lot of minor things that could happen. That’s why you have to look at things and really consider how much risk you want to take on. … You have to be prepared for a bumpy ride for months after the election.”
Fortunately, even while navigating through continually unprecedented times, he brings the expert insight and vast expertise befitting a long and successful career of assisting South Jersey residents with heady matters like pre- and post-retirement planning, wealth protection, tax minimization and personalized financial advice, always assuring his clients that there are best practices, proven approaches and proactive money-management avenues at their disposal.
One’s financial position and goals are, of course, deeply personal considerations meriting a proportionally personalized path. And while a good wealth manager knows exactly how to guide their clients toward the investments, assets and strategies that both fit their current position and are adaptable to whatever the future might hold, a client does have to first identify preferences and realities like their appetite for taking calculated risks that can yield the rewards nudging them ever closer to their goals.
“You have to look at all the different options that there are, and pick what makes the most sense,” Molotsky explains. Those options include everything from balancing potential pitfalls and payoffs to determining just how one wants to allocate their investments, and can be shaped by intent and timelines, like saving for a child’s education or a couple’s retirement.
One’s intended timeline is particularly important, as the longstanding wisdom is to take more risks earlier on when there’s still plenty of time to course-correct, versus taking a more conservative investment approach as that target date grows closer. Additionally, accounting for a rainy day is crucial, which is why Molotsky ardently champions having a penalty-free income reserve on hand.
“If your timeframe is years down the road, you’ll want to take advantage of whatever things are happening that could add to your position; if you’re already in retirement and you can’t afford the risk, you have to be a little more prudent and a little more cautious with what you have, which is the position we’ve been taking,” he says. “It’s also a matter of looking at your cash flow. You have to have money in the bank to take care of something that may be an unforeseen expense. We try to make sure clients have six to 12 months of expenses in money that you can get your hands on in a minute. It doesn’t have to be cash, it could be a one-year CD—anything that doesn’t upset what your intermediate and long-term plans are.”
No matter how clients decide what kind of wealth-management best practices make the most sense for them, Molotsky does have some general advice to prepare for a future that no one can truly predict beyond identifying patterns and offering educated estimates based on previous financial trends. For example, citing a client’s recent discovery that their former spouse was still listed as a beneficiary, he “strongly urges” everyone to review their financial accounts before an unexpected hiccup or bona-fide emergency occurs.
“We constantly harp on this with clients: Check the beneficiary designations on your various investments and insurance policies before it is too late,” Molotsky explains. “Every so often, people will come in and will review their life-insurance policies, beneficiary designations, IRAs and their brokerage information, and it is nothing like what they really wanted to do. … It’s so important to check who is to get what you have if something should happen to you.”
Developing a relationship with clients certainly helps Molotsky and the rest of the team at SHM Financial establish the trust at the heart of successful, flexible financial plan. After all, Molotsky just wants his clients to enjoy some peace of mind and rest assured that they have a clear path toward their financial goals, even in the most uncertain of times.
“We’re comfortable in our clients’ holdings, that they’re getting decent returns, they’re protected and they can sleep better at night,” he affirms. “And if they can sleep better at night, then I can sleep better at night.”
The SHM Financial Group
Voorhees
(856) 454-5110 | (800) 666-3974
SHMFinancial.com
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Published and copyrighted in South Jersey Magazine, Volume 21, Issue 8 (November 2024)
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