My clients, a husband and wife, and their daughter, were sitting at the table in our large conference room.  They have been with my firm for many years and appreciate our guidance.  As we started our meeting, the husband made an observation about the news he watches and all of the problems facing the country.  He then asked (with reference to our country): "How the heck are we going to get out of this mess?"  We had a discussion about the "mess" we are in.  I told them I also have many concerns.  I mentioned a recent seminar I attended. The speaker was David M. Walker, President & CEO of The Peter G. Peterson Foundation (www.pgpf.org), former Comptroller General of the United States and CEO of the Government Accountability Office (GAO).  You may recognize David Walker's name from the film "I.O.U.S.A.".Mr. Walker has written a book titled: Comeback America: Turning the Country Around and Restoring Fiscal Responsibility.  While I had not yet read the book, I told my clients about some of the issues he raised in his speech:

·       Our country has moved from an opportunity society to an entitlement society.

·       The government has made too many unfunded promises.  About the Social Security Trust Fund he says there is no "trust" in it and it is not "funded".  We are facing crises in unfunded promises related to Social Security, Medicare, and State and Local Government pensions.

·       50% of our public debt is foreign owned and this percentage would be higher without Federal Reserve action.

·       The single largest line item on the federal budget in 12 years will be INTEREST EXPENSE.  This assumes interest rates will stay where they are right now at historically low rates.

·       Our tax system is so complex that government officials cannot prepare their own tax return.  He thinks Congressmen should be required to prepare their returns WITHOUT TAX SOFTWARE. (I really like that one!)

I related to my clients a discussion I had with a friend of mine who is also a CPA.  I expressed some of my own feelings about what is going on in the country.  I told him about the many clients who express worry but I couldn't quite put my finger on the root of their concern.  My friend stated that most of his clients are worried about the future of capitalism.  Is the perceived erosion of capitalism at the root of many of our concerns?

At this point in our lively discussion, turning to my clients, I said: "I really don't know how the United States is going to get out of this mess.  The important thing is how has your financial planner (me!) helped you to avoid this mess?"  Our clients reminded me of how well we had taken care of them since they joined us many years ago.  We chatted about how their portfolio is structured to adapt to a changing world as well as a changing country.  They know that their portfolio team looks forward to assessing opportunities and risks rather than relying mainly on hindsight.  Our clients appreciate how we are transparent in terms of reporting their portfolio returns net of the fees they pay to us.  I mentioned one of my favorite areas, income taxes.  Keeping an eye on tax changes and helping them to minimize taxes has been an important role in their financial security.  We regularly discuss estate planning and risk management with them.  We want to ensure that the assets accumulated during their lifetime are protected and ultimately will be distributed in accordance with their wishes, while minimizing the estate taxes and fees, which often deprive heirs of inheritances.  Through it all, we have monitored cash flow to help maintain their retirement lifestyle.  Our guidance allowed them to purchase a new residence while simultaneously providing financial assistance to a family member.  

Our role as planners is to help and grow our clients' wealth by integrating the various facets of financial planning.  We help them create and implement individual life plans and goals.  Achieving goals is a lot like trying to put together a complicated puzzle.  You not only need all of the pieces but you need the right pieces in the right places to finish the puzzle.  As my clients left the office that day, I told them that I intended to use their quote in my article.  I'm not sure they thought I was serious.  Well, I was!

As planners we help our clients avoid "the mess" by helping them put together the puzzle. We don't pick up individual pieces and say "I wonder how this fits?"  We turn over the puzzle box and look at the big picture!  As we complete the puzzle, I hope our clients feel that one of the most important pieces is the one that has the FPA logo on it!