Finance

• toomeyinvest
• Finance
• August 26, 2026

Why a Financial Plan Is More Than Just an Investment Portfolio

When people think about financial planning, many assume it centers primarily on choosing the right investments. While investment management is an important component of building and preserving wealth, a truly comprehensive financial plan extends well beyond portfolio construction. Investments are only one element within a larger, interconnected framework that must support cash-flow needs, tax efficiency, risk management, retirement income, estate objectives, and evolving life circumstances.

A plan that focuses mainly on investment selection can leave significant gaps. Market returns matter, yet they do not automatically solve questions of how much income can be sustained, how taxes will affect net cash flow, how healthcare or longevity risks will be addressed, or how assets will ultimately transfer to the next generation. Comprehensive wealth management examines these issues together so that decisions in one area do not unintentionally undermine progress in another.

Goals, Cash Flow, and Lifestyle Design

Effective planning begins with clarity about what you want your money to accomplish. Goals may include a comfortable retirement, a second home, meaningful travel, supporting family members, philanthropic intentions, or simply greater day-to-day financial confidence. Translating these aspirations into a workable plan requires realistic modeling of current and future cash flows—both inflows and outflows—under different assumptions.

This process is rarely static. Spending patterns change, unexpected expenses arise, and priorities shift. A comprehensive approach evaluates not only how assets are invested, but how they will be drawn upon, replenished, and protected so that lifestyle objectives remain supported across different market and personal scenarios.

Retirement Income: Turning Savings into Sustainable Cash Flow

Accumulating assets is only part of the retirement equation. Once earned income declines or stops, the focus shifts to converting those assets into reliable income while managing the risk of outliving them. This involves far more than a simple withdrawal rate.

Key complexities include:

• Sequencing withdrawals across taxable, tax-deferred, and Roth accounts to manage tax brackets and Medicare surcharges.
• Coordinating the timing of Social Security claiming decisions with other income sources.
• Addressing required minimum distributions and their impact on taxable income.
• Evaluating sequence-of-returns risk in the early years of retirement.
• Incorporating pension decisions (lump-sum versus annuity) and other fixed income streams.
• Building flexibility for variable expenses and potential longevity.

These elements interact continuously. A decision that looks optimal in isolation—such as claiming Social Security early or drawing heavily from one account type—can create downstream tax or cash-flow consequences that reduce overall plan resilience.

Tax Planning as an Ongoing Discipline

Taxes influence nearly every major financial decision. Thoughtful tax planning seeks to reduce unnecessary burdens and improve the efficiency of both accumulation and distribution phases. This includes coordinating the location of investments across account types (asset location), managing the timing and character of income recognition, evaluating Roth conversion opportunities in lower-income years, and considering the tax implications of charitable giving or large purchases.

Tax rules change, income levels fluctuate, and personal circumstances evolve. A plan that treats taxes as a secondary afterthought often leaves money on the table or creates avoidable complexity later. Integrating tax considerations into investment, retirement, and estate decisions helps keep more of what has been accumulated working toward stated goals.

Risk Management and Protection Strategies

Wealth can be eroded by events unrelated to market performance—premature death, disability, prolonged illness, liability claims, or long-term care needs. Risk management therefore extends beyond portfolio diversification.

A comprehensive review typically examines:

• Life, disability, and long-term care insurance coverage relative to current needs and dependents.
• Property, casualty, and umbrella liability protection.
• Emergency reserves sized to personal circumstances.
• Beneficiary designations and titling of assets.
• Healthcare coverage transitions, particularly around retirement.

These protections interact with cash-flow planning and estate objectives. Inadequate coverage can force the liquidation of investments at inopportune times or shift financial burdens onto surviving family members. Over-insurance, conversely, can divert resources that might otherwise support lifestyle or legacy goals. Calibration is therefore essential and should be revisited as life stages change.

Estate and Legacy Coordination

For many individuals and families, the purpose of wealth extends beyond their own lifetimes. Estate planning addresses how assets will transfer, who will make decisions if capacity is lost, and how tax and administrative costs can be managed. This involves more than documents signed years earlier.

Relevant considerations include the alignment of beneficiary designations with overall intentions, the potential use of trusts, liquidity needs for estate settlement, step-up in basis planning, and the interaction between retirement account distributions and legacy goals. Market declines, higher spending later in life, or changes in family circumstances can all affect what remains for heirs. Coordinating retirement income strategies with estate objectives helps reduce the chance that short-term cash-flow decisions undermine longer-term transfer goals.

Life Transitions and the Need for Ongoing Adjustment

Major life events—marriage, divorce, career changes, inheritance, the sale of a business, health developments, or the approach of retirement—often require meaningful plan adjustments. A static investment allocation or an outdated set of assumptions can drift out of alignment with new realities. Comprehensive wealth management treats the plan as a living framework that is reviewed and refined as circumstances evolve, rather than a one-time exercise.

Why Investments Alone Are Insufficient

Investment selection and portfolio construction remain important. Asset allocation, diversification, cost management, and rebalancing all influence long-term outcomes. Yet these decisions operate within a broader system. An optimally constructed portfolio still faces questions of when and how to draw from it, how taxes will affect net results, how protected the household is against non-market risks, and how remaining assets will pass to the next generation.

When these elements are addressed in isolation, gaps and inconsistencies frequently appear. When they are coordinated, the overall strategy tends to be more coherent, more adaptable, and better aligned with the full range of personal and family objectives.

At Toomey Investment Management, we approach financial planning as an integrated discipline. Investment management is an essential component, yet it is considered alongside retirement income design, tax-aware strategies, risk management, cash-flow planning, and legacy considerations. The objective is to help clients develop a coordinated framework that can adapt as markets, tax rules, and life circumstances change.

If it has been some time since your overall financial plan has been reviewed in this broader context, a comprehensive discussion can help clarify how the various pieces currently fit together and where adjustments may be warranted.

• toomeyinvest
• Finance
• January 20, 2026

How a Financial Planner Helps You Stay on Track for Retirement

Planning for retirement can feel overwhelming. Between saving, investing, tax considerations, and ever-changing market conditions, it is easy to lose sight of long-term objectives. A trusted financial advisor serves as both architect and steward of your retirement plan—helping you design a strategy and ensuring it remains effective through every stage of life. Working with an experienced financial planner provides structure, clarity, and confidence as you pursue your long-term personal financial goals.

The Value of Consistency, Discipline, and Long-Term Vision

Retirement planning is not defined by isolated decisions, but by consistent execution over time. Markets fluctuate, expenses evolve, and unexpected life events can materially alter a financial picture. Without a disciplined framework, even well-intentioned investors can be pulled off course by short-term volatility or emotional decision-making.

A trusted advisor provides continuity and accountability by:

• Monitoring progress toward long-term goals

• Rebalancing portfolios as markets shift

• Adjusting strategies in response to life changes

• Helping clients avoid reactive decisions during periods of market stress

• Incorporating long-term legacy planning considerations into retirement strategy

This steady oversight keeps your plan aligned with its original purpose while allowing for thoughtful, proactive adjustments that support both present stability and future generational impact.

Personalized Retirement Planning Beyond the Numbers

No two retirements are the same. While one individual may prioritize travel and lifestyle flexibility, another may focus on legacy planning, charitable giving, or multigenerational support. A knowledgeable financial planner begins with understanding why you are saving—not just how much.

Personalized planning typically includes:

• Evaluating current and future income sources

• Developing sustainable withdrawal strategies

• Coordinating taxable, tax-deferred, and tax-free assets

• Stress-testing plans against different market and longevity scenarios

• Aligning strategy with clearly defined personal financial goals

This level of customization ensures your retirement strategy reflects your values, lifestyle aspirations, and long-term financial independence.

Managing Investments with Intention and Risk Awareness

Effective retirement planning requires thoughtful managing investments with purpose. It is not about outperforming markets in any single year—it is about constructing a portfolio designed to support your goals across decades.

A trusted financial advisor focuses on balancing growth, income, and capital preservation in a way that aligns with your risk tolerance and time horizon. Professional oversight helps:

• Maintain diversification across asset classes and strategies

• Manage risk as retirement approaches and progresses

• Ensure liquidity for spending needs without disrupting long-term investments

• Adapt portfolios as economic and market conditions evolve

This intentional approach ensures that asset management decisions are aligned with both short-term income needs and long-term wealth preservation.

Integrated Financial Guidance Through Life’s Transitions

Retirement planning does not occur in isolation. Tax laws change, healthcare costs evolve, and major life events—such as career changes, inheritance, divorce, or family needs—can reshape financial priorities. Experienced financial advisors help integrate these variables into a cohesive strategy rather than addressing them separately.

By coordinating investment decisions with tax strategy, estate considerations, insurance planning, and legacy planning, your advisor ensures that every component of your financial life works together seamlessly.

Peace of Mind Through Professional Stewardship

Perhaps the most meaningful benefit of working with a trusted financial advisor is confidence. Knowing that a professional is proactively monitoring your plan, identifying risks, and adjusting strategies as needed allows you to focus on enjoying life—rather than constantly worrying about financial uncertainty.

At Toomey Investment Management, we believe financial planning should feel clear, personal, and reliable. We translate complex strategies into terms that make sense to you, and we do so in a fiduciary capacity. As a multi-generational family business, we are committed to being your lifelong partner—not just another advisor in a corporate chain.

When life events happen (and they almost always do), you can count on the same trusted financial planner who knows your story and understands your goals. From retirement planning and managing investments to legacy planning and achieving your personal financial goals, we serve as your personal financial manager and comprehensive resource for your financial needs—dedicated to simplifying your life and providing lasting peace of mind for the future.

• toomeyinvest
• Finance
• January 20, 2026

What Is Asset Management and Why Is It Important for Your Portfolio?

When it comes to building lasting financial security, simply saving money is rarely enough. Making your money work for you through thoughtful, disciplined investing is where long-term growth begins—and that is the role of asset management. Managing investments requires careful planning, ongoing monitoring, and periodic adjustments to ensure your portfolio remains aligned with your personal financial goals. It is about striking an appropriate balance between risk and return, allowing your wealth to grow while managing downside exposure.

What Is Asset Management?

In practical terms, asset management is the professional oversight of your investments—such as stocks, bonds, mutual funds, exchange-traded funds, and, in some cases, alternative assets—with the goal of growing and preserving wealth over time. Rather than making isolated or reactive investment decisions, asset management applies a structured, goal-oriented approach.

A trusted financial advisor or experienced financial planner begins by understanding your objectives, time horizon, income needs, and risk tolerance. From there, a tailored investment strategy is developed and continuously refined as markets evolve and your personal circumstances change.

Think of asset management as a financial roadmap—each decision, from asset allocation to portfolio rebalancing, is designed to keep you moving steadily toward your long-term goals, including retirement readiness and legacy planning.

The Role of Diversification in Managing Investments

One of the foundational principles of effective managing investments is diversification—spreading assets across different asset classes, sectors, industries, and strategies. Diversification matters because markets are inherently unpredictable. When one segment underperforms, another may provide stability or growth, helping reduce overall portfolio volatility.

For example:

• Growth-oriented equities can provide long-term appreciation

• Fixed-income investments may offer income and stability

• Alternative or defensive strategies can help mitigate downside risk

While diversification does not eliminate risk or guarantee returns, it reduces reliance on any single investment and supports more consistent performance across market cycles. Financial advisors use diversification as a core strategy to create resilient portfolios designed for long-term sustainability.

Aligning Investments with Risk Tolerance and Life Stage

Every investor has a unique comfort level with risk, shaped by financial circumstances, time horizon, and personal priorities. Effective asset management ensures your portfolio aligns not only with your capacity for risk, but also with your ability to remain invested during periods of market volatility.

As life stages evolve, so should your investment strategy:

• Early career investors may focus on growth and long-term capital appreciation

• Mid-career professionals often balance growth with wealth preservation

• Pre-retirees and retirees may prioritize income generation, capital preservation, and liquidity

• Individuals focused on legacy planning may incorporate strategies to support future generations

A skilled financial planner helps adjust asset allocation and risk exposure as your goals and circumstances change, ensuring alignment with both current needs and long-term objectives.

Why Work with a Financial Planner or Financial Advisor?

While some investors manage assets independently, partnering with experienced financial advisors often adds meaningful value—especially during uncertain market conditions.

A trusted financial planner helps:

• Maintain a disciplined, long-term perspective

• Avoid emotionally driven decisions during market downturns

• Monitor portfolio alignment with personal financial goals

• Identify tax-efficient strategies and rebalancing opportunities

• Integrate asset management with broader financial planning and legacy planning objectives

Professional oversight brings objectivity and structure, helping ensure that short-term market noise does not derail long-term financial progress.

Integrating Asset Management into a Broader Financial Strategy

Asset management does not exist in isolation. It works best when integrated into a comprehensive financial plan that includes retirement planning, tax strategy, estate considerations, insurance planning, and long-term wealth transfer goals.

By coordinating managing investments with cash-flow planning, retirement income strategies, and legacy planning, financial advisors help ensure every component of your financial life works together cohesively. This integrated approach strengthens long-term financial stability and enhances overall wealth stewardship.

The Bottom Line

Asset management is more than selecting investments—it is about building and maintaining a comprehensive strategy that supports your lifestyle today while positioning you for the future. Through disciplined managing investments, thoughtful diversification, risk alignment, and professional guidance from a trusted financial advisor, your portfolio can deliver both growth and resilience.

At Toomey Investment Management, we take the time to understand your personal financial goals and design investment strategies tailored to your unique journey. With consistent oversight and proactive adjustments, we help ensure your wealth continues working for you—providing clarity, confidence, and peace of mind through every stage of life.

• toomeyinvest
• Finance
• January 20, 2026

Setting Personal Financial Goals: The First Step Toward Financial Freedom

Financial freedom doesn’t happen by accident—it begins with a plan. Setting clear, personal financial goals is the foundation of any successful financial journey, whether you’re saving for a home, planning for retirement, building wealth, or working toward eliminating debt. At Toomey Investment Management, our experienced financial advisors help clients throughout Connecticut turn financial aspirations into achievable milestones through customized, goal-based planning.

Start with a Clear Financial Vision

The first step in achieving meaningful financial progress is defining what you truly want to accomplish. Your goals may be:

• Short-term: Building an emergency fund, paying off credit cards, saving for a vacation

• Mid-term: Purchasing a home, funding education, expanding a business

• Long-term: Retirement planning, wealth accumulation, and legacy planning

Clarity creates direction. When you define your financial destination, your strategy becomes more intentional. A professional financial planner helps you prioritize these objectives and connect them to a structured action plan that aligns with your income, risk tolerance, and timeline.

Create SMART Personal Financial Goals

Effective goal setting requires structure. Financial goals should be SMART: Specific, Measurable, Achievable, Relevant, and Time-bound.

Instead of saying, “I want to save more money,” a SMART goal would be:
“I will save $5,000 in 12 months for a home down payment by setting aside $417 each month.”

This approach transforms abstract wishes into measurable targets. When managing investments and cash flow intentionally, progress becomes easier to track—and easier to adjust when life changes.

A financial planner can also integrate tax strategy, retirement accounts, and investment planning into your SMART goals, ensuring your money is working efficiently toward your objectives.

Managing Investments to Support Your Goals

Goal setting and managing investments go hand in hand. Your portfolio should serve a purpose—each investment aligned with a defined outcome.

For example:

• Growth-focused investments may support long-term retirement or wealth-building goals

• Income-generating assets may align with near-term needs

• Diversified strategies can help manage risk while pursuing steady returns

Financial advisors design portfolios that reflect your life stage and evolving priorities. As your goals shift—whether that includes accelerating retirement savings or implementing legacy planning strategies—your investment approach should adapt accordingly.

Track Progress and Stay Flexible

Life rarely unfolds exactly as planned. Career changes, market fluctuations, family milestones, or unexpected expenses can alter your financial path. That’s why ongoing review is essential.

Regular check-ins with a trusted financial planner allow you to:

• Evaluate progress toward personal financial goals

• Adjust contributions or timelines

• Rebalance investment portfolios

• Refine strategies for tax efficiency and long-term growth

Proactive oversight ensures your plan remains aligned with both your short-term needs and long-term aspirations.

Why Work with Financial Advisors?

While it is possible to set goals independently, partnering with experienced financial advisors provides clarity, accountability, and strategic insight.

At Toomey Investment Management, we focus on:

• Personalized financial planning tailored to your life stage

• Disciplined managing investments aligned with your objectives

• Retirement income and wealth accumulation strategies

• Legacy planning to protect future generations

• Ongoing adjustments as markets and circumstances evolve

Professional guidance helps remove emotion from financial decisions and replaces it with thoughtful, long-term strategy.

Start Building Your Financial Future Today

Setting personal financial goals is the most important step in taking control of your financial future. But defining goals is only the beginning—achieving them requires structure, discipline, and expert guidance.

If you’re ready to move beyond day-to-day budgeting and start building lasting wealth, the team at Toomey Investment Management—your trusted financial planner in Connecticut—is here to help. From managing investments to comprehensive legacy planning, we provide personalized strategies designed to turn your goals into measurable results.

Let’s make your goals more than just wishes. Let’s make them a reality.

• toomeyinvest
• Finance
• October 21, 2024

Ensuring Your Legacy: How to Plan Your Estate for a Secure Future

While few people may find saving for retirement and retirement planning “fun,” what it represents is generally positive: a time when you can cease the daily grind of work, set your own life pace, and enjoy hobbies, friends, and families.

Estate planning, however, is most certainly not an enjoyable activity, as it generally involves addressing a time after one’s death. There are good reasons, however, why estate planning should be an important complement to retirement planning. There is enough cross-over in the two activities that it makes sense to engage in them at the same time.

Having a comprehensive estate plan ensures that your assets are distributed according to your wishes, minimizes taxes to maximize what you pass on to your heirs, and prevents court intervention, providing peace of mind for you and your loved ones. It’s also a critical step in achieving your personal financial goals and securing your legacy.

Because retirement planning and estate planning are intertwined, it’s a good idea to work with a financial planner who specializes in both: this individual can help you arrange your estate in a way that will maximize what you leave to your heirs and minimize the work they will have to do in the event of your death. They can also assist with asset management and guide your investment strategy to ensure your long-term objectives are met.

Some elements to consider when planning your estate include:

Whether you will create trusts. There may be a variety of reasons to create trusts. In the case of dependents, you may wish to set up trusts that will ensure they have enough money to finish school, train for a career, or reach a certain age before they can access an inheritance. For family members who require special help or care, a trust can ensure that the care is funded for the rest of their lives.

Minimizing tax burdens. Improper estate planning – similar to improper retirement planning – can expose you to the risk of paying more taxes than necessary or leaving less to your heirs. A professional advisor can address strategies for both retirement and estate planning to ensure that you are minimizing your overall tax burden and maximizing the value of your wealth management plan.

Protecting personal assets from business losses. As a business owner, you’ll know that retirement or death does not end the possibility of lawsuits against your nest egg or your estate, particularly if you operated a business in a high-risk category such as healthcare or construction. A careful estate plan will protect your assets from lawsuits that might be filed after you’ve retired or after you have passed away, protecting both your retirement funds and your heirs through smart independent portfolio management.

Integrating Retirement Planning and Estate Planning

In your financial planning, you may tap the resources of a financial advisor, a tax professional, and a lawyer. Are these professionals working together to ensure that your retirement planning and your estate planning are complementary? Ideally, retirement professionals, estate planners, accountants, and attorneys should all work together to produce an all-encompassing personal financial strategy.

At Toomey Investment Management, we understand the importance of a cohesive approach to your financial future. By integrating retirement planning and estate planning, we help ensure that all aspects of your financial life are aligned and working together. Let our experienced team guide you through a seamless strategy that meets your unique needs—from saving for retirement to effective asset management. Contact us today!

• toomeyinvest
• Finance
• May 30, 2023

Managing Your Finances: Tips for Handling Inheritance and Settlement Events

A large inheritance or a financial settlement can be both a bonus and a burden. It’s a bonus because the money could come in handy for boosting retirement or education savings, upgrading a home, or quality-of-life events such as travel. The burden is because a large amount of money imposes certain responsibilities on the recipient such as taxes, investments, and the many choices involved in managing the money. Experts offer a number of tips for recipients of large funds. These include:

Taking your time. If you inherit a large amount of money or receive it in a settlement, take your time in deciding what to do with it. Inheritances often involve grief in mourning a loved one who has passed, and settlements often happen after a life-changing event such as an accident. Don’t make any fast decisions and be certain to consult with a professional financial advisor. Initially, it’s wise to park the money in a federally insured bank or credit union, which will allow you to store up to $250,000 per depositor. You can arrange for more coverage by setting up several different types of accounts.

Choose a financial advisor carefully. Different types of estate planners will have different responsibilities when it comes to preserving your money. Some advisors may try and steer you toward certain types of investment in order to maximize their own commissions. Consider using an independent RIA, who is not limited in what they can offer in constructing a bespoke plan that is truly tailored to your needs. This way, there should be no conflicts of interest arising on the planner’s part.

Seek help for non-cash assets. If you inherit non-cash assets such as securities, you may find they’re not a good match for your investment style or your goals. Seek assistance in determining whether it’s a good idea to keep them or sell them and turn them into something else.

Debts or investments? Many people use inheritance or settlement money to pay off debts. And while this makes sense for high-cost debts such as credit cards or student loans, it may not make financial sense to pay off a low-rate home mortgage, for example. With an experienced financial advisor, you can make some cost-benefit comparisons to determine whether the money will serve you better be used to pay off loans, or investing in high-yield products.

Tax implications. There are a variety of tax implications depending on the source of the inheritance or settlement, and the amount of money involved. For instance, some lawsuit awards or settlements are not taxable, and some are. If you’ve inherited a non-qualified annuity, your tax liability will be vastly different than an inherited IRA, or real estate. A financial advisor can help you understand how to configure your inheritance or settlement best to reduce your tax liabilities.

At Toomey Investment Management, Inc. (TIMI), our business model is designed to treat all of our clients equally and fairly. We realized long ago that the financial industry dedicated many resources to capture money from prospective clients but much less on service and accountability for existing clients. At Wallingford, Connecticut-based TIMI, we listen carefully, keep in touch, and return your calls and communications quickly, so you can count on us. We will work effectively to optimize your financial situation and solve your problems. Call us at 203-949-1710 or visit our website for more information.

• toomeyinvest
• Finance
• May 30, 2023

Looking to Your Financial Health During a Divorce

Weddings are happy times, and few people want to think about the possibility of divorce in the early years of their marriage. But as many as half of marriages end in divorce, and these painful events are full of difficult decisions at a time when emotions are running high. Basic issues such as the financials in the heart of divorce can become clouded with other distractions. Unfortunately, the time to protect your financial health is often overrun with a thousand other considerations, but it shouldn’t be.

Recently, a panel of Forbes Finance Council members gathered to brainstorm about financial considerations that are often overlooked when dealing with a divorce. Some of their most important points included:

Looking at your joint accounts. Many people spend injudiciously when a divorce is happening, and one partner may be harmed by the financial decisions of the other spouse when it comes to joint accounts, credit cards, and loans. It’s important to seek financial advice at this time so you can protect yourself from suffering the repercussions of bad financial decisions on the part of your soon-to-be-ex-spouse.

Ensuring the bills are paid. It may be a hum-drum thing, but the bills are due regardless of what’s going on in your personal life. During a divorce, some couples tend to ignore run-of-the-mill financial housekeeping duties like ensuring the mortgage is paid. It’s important to make a timely decision about who will be responsible for payments on bills and get that in writing. You may wish to quickly refinance the mortgage to whoever will remain living in the house, so the other spouse isn’t on the hook for the credit hit that will occur if payments are late or non-existent. Experts recommend that divorcing spouses keep a close eye on their personal credit scores so they can receive early warning of any anomalies.

Life insurance policies. Often, it’s the main breadwinner who secures life insurance to cover future alimony and/or child support in the event the breadwinner has a premature death. Many people tend to choose these amounts at random. It’s important to seek professional help to calculate the present value of future payments in order to make sure the future payments are covered.

Tax considerations. Couples often split their assets without considering the tax ramifications of their choices. A couple might, for example, determine that one partner will get the retirement accounts and the other will keep the house if the values are similar on paper. There are strong tax considerations that may make these decisions not as equitable as they appear.

Consult with a Professional Financial Services Partner

One of the first things individuals undergoing a separation or divorce should do is ensure they are getting good advice from a financial services expert. In Connecticut, we are an equitable distribution state, which makes all marital assets fair game for equal, or in some cases, unequal division. It is imperative that both parties understand the long term pros and cons of each decision made that may potentially impact the rest of their respective financial lives.

At Toomey Investment Management, Inc. (TIMI), our business model is designed to treat all of our clients equally and fairly. We realized long ago that the financial industry dedicated many resources to capturing money from prospective clients but much less to service and accountability for existing clients. At Wallingford, Connecticut-based TIMI, we listen carefully, keep in touch, and return your calls and communications quickly, so you can count on us. We will work effectively to optimize your financial situation and solve your problems. Call us at 203-949-1710 or visit our website for more information.

• toomeyinvest
• Finance
• January 9, 2023

Why You Should Not Panic Sell During A Down Market

Many Americans are logging into their investment accounts with a sense of dread these days. How much more, you may be thinking, have I lost since the last time I logged in? 

2022 has proven to be the worst year for the stock market since the financial crisis of 2008. The poor performance can be chalked up to a variety of factors, including rising interest rates, economic worries, the war in Ukraine, global inflation, the ongoing COVID-19 pandemic, and more. As of December 20, 2022, the S&P 500 was down by more than 19 percent for the year. It can be hard to look at as it relates to your investment or retirement accounts. 

But experts have a piece of advice for you: don’t panic sell. 

Watching your investment portfolio or your 401(k) plan that you have been building for years take a sudden dive is difficult to watch. You may have an overwhelming urge to sell up and salvage what you can. But in the long run, this can be one of the most damaging actions you can take.

Reasons Not to Panic-Sell

The market will likely come back. History shows us that downturns in the market are ultimately only temporary. In the end, large rebounds return most portfolios to the black in just a few years.

“Sharp, sudden market declines are disconcerting, prompting many investors to reduce their stock holdings, or pull out of the market,” according to analysts with MFS Investment Management. “As history has shown, financial markets have rebounded from market shocks, posting strong long-term gains. All too often, investors that have sold out during a crisis have locked in losses and possibly missed the rebound. Riding out market declines and benefiting from potential rebounds may be a better plan.”

It’s an opportunity to buy. As the saying goes, “When the going gets tough, the tough go shopping.” If you have some cash to spare, now can be a great opportunity to take advantage of undervalued stocks and purchase some, so your portfolio can bounce back better than ever when the market sees the upswing. 

Consider a downturn “economic exercise.” Just as a body that never faces physical challenges will never get strong, economies that experience no turbulence should be viewed suspiciously. In order for continued growth to occur, regular downturns are necessary to find and eliminate market bubbles and adjust to intrinsic market prices.

Warren Buffet once famously said, “Our favorite holding period is forever.” While you may not be prepared to hold your investments forever, be certain that you’re selling for the right reasons and under the right circumstances. In a panic, a mistaken effort to stem more losses is not the right circumstance. 

Seek Professional Advice

To gain the peace of mind that your financial plan can weather future market downturns, it may be beneficial for you to seek the advice of a professional who will be able to create a comprehensive financial plan that’s suited to your tolerance for risk.  

At Toomey Investment Management, Inc. (TIMI), our business model is designed to treat all of our clients equally and fairly. We realized long ago that the financial industry dedicated many resources to capturing money from prospective clients, but much less on service and accountability for existing clients. At Wallingford, Connecticut-based TIMI, we listen carefully, keep in touch, and return your calls and communications quickly, so you can count on us. We will work effectively to optimize your financial situation and solve your problems. Call us at 203-949-1710 or contact us for more information.

• toomeyinvest
• Finance
• August 25, 2022

Do I Need a Financial Fiduciary?

If you’re taking the initiative in your financial planning, you may have heard that you need a financial fiduciary. A fiduciary is a professional or a company that is required by law to act in your best financial interests. The fiduciary might be a financial advisor, a lawyer, or even a real estate agent. This person can manage your assets, such as investment portfolios or other accounts, as well as real estate. Because this person is required by law to manage your assets in your own best interests, they have a duty of care to your finances and must disclose if the management of your assets benefits them.

Isn’t My Financial Advisor a Fiduciary?

Many people assume that just because they have a financial advisor, this person is automatically a fiduciary. This isn’t necessarily true. Not all financial advisors are completely independent like Registered Investment Advisors (RIAs) and even though they may have advanced planning credentials, they may be limited by the firm at which they are employed.

The Right Advisor At The Right Firm

Guaranteeing the trustworthiness of a financial advisor is often the responsibility of the investor. When choosing an advisor, it’s important to look for advisors with advanced credentials such as Certified Financial Planners, Chartered Financial Consultants etc., but we would argue that it’s even more important to inquire about the structure of the firm you’re partnering with. Advisors can, for instance, pass tests and acquire some of the industry’s best credentials, but work for a company that only offers one line of products and services. It’s extremely important to understand that you’re not just partnering with an advisor, but the firm he or she operates under. Knowing if your advisor can solicit a number of different broker dealers, insurance brokers, and investment custodians in structuring your financial plan could mean the difference between decent results, and great results.

For greater peace of mind, it’s important that you are able to trust your financial advisor explicitly and trust that they are making investment decisions that are in your best interest (instead of their own). To get the best possible performance from your financial planning, look for a professional firm with fiduciary responsibility that can customize a plan for you, your assets, and your lifestyle.

Choose Toomey Invest Management in Wallingford, CT

Toomey Investment Management, Inc. (TIMI) is an independent RIA, and we believe our business model enhances our ability to enhance our client experience. We realized long ago that the financial industry dedicated many resources to capture money from prospective clients but much less to service and accountability for existing clients. At Wallingford, Connecticut-based TIMI, we listen carefully, keep in touch, and return your calls and communications quickly, so you can count on us. We will work effectively to optimize your financial situation and solve your problems. Call us at 203-949-1710 or visit our website for more information.