At Cobblestone Capital Advisors, we’ve fielded countless questions over the years. Some come up more frequently than others, and we’re here to share insights on five common, diverse questions we hear. Let’s dive in!
This is a common dilemma, especially for younger investors. While 401(k)s offer tax advantages and potential employer matches, they also have the potential to lock up your money until age 59½ (although proper financial planning can allow early access to those funds). The key is finding the right balance for your situation.
We almost always recommend contributing enough to 401(k)s to receive the full employer match. It’s free money! Beyond that, consider your goals and timeline. If you’re saving for near-term expenses like a home down payment, you might want to allocate more to flexible investing accounts.
However, don’t underestimate the power of tax-advantaged growth in retirement accounts. Remember, diversification isn’t just about asset classes – it’s also about tax treatment. Having a mix of pre-tax, Roth, and taxable accounts gives you more options in retirement.
This is a complex question, but our experience suggests that while money can certainly reduce stress and create opportunities, it doesn’t guarantee happiness. What we can tell you is that many of our most successful clients have characteristics in common. We’ve seen that our happiest clients tend to:
Ultimately, money is only a tool. It’s how you use it that impacts your happiness.
There are many different revenue models in this industry, some more transparent than others.
At Cobblestone, we’re a fee-only fiduciary. This means we’re paid a percentage of the assets we manage, not through commissions. We believe this better aligns our interests with those of our clients.
Our fee covers comprehensive financial planning, investment management, and access to our team of experts. This structure allows us to give objective advice focused solely on what’s best for our clients.
Interest rates went through large changes in 2022 and 2023, and are expected to decrease toward the end of 2024. This has impacted various aspects of financial planning. Here’s what we’re considering:
Remember, it’s generally unwise to try to time interest rate movements. Instead, we focus on building diversified portfolios that can weather various interest rate environments.
Artificial intelligence is a hot topic, and its potential impact on our industry is significant. In the short term, we see AI as a powerful tool to enhance our services by helping us process data more efficiently or generate quick answers to common questions.
In the long term, the nuanced, relationship-based nature of wealth management means human advisors will remain crucial. AI excels at providing general information, but it struggles with the complex, individualized scenarios we often encounter. For example, AI might provide a textbook answer about retirement savings, but it can’t factor in your unique family dynamics, risk tolerance, or life goals the way a human advisor can.
Looking ahead, we’re excited about AI’s potential to democratize financial advice, making basic guidance more accessible to everyone. For those with complex financial situations, however, the combination of human expertise and AI tools will likely provide the best outcomes. We’re committed to staying at the forefront of technological advancements while maintaining the personal touch that’s central to our client relationships.
We hope you’ve enjoyed seeing what’s on the minds of clients like you. Just remember, these questions are only starting points for important financial conversations. Every situation is unique, and that’s why we’re here – to provide personalized guidance tailored to your specific needs and goals.
Registration with the SEC should not be construed as an endorsement or an indicator of investment skill, acumen, or experience. Investments in securities are not insured, protected, or guaranteed and may result in loss of income and/or principal. Nothing in this communication is intended to be or should be construed as individualized investment advice. All content is of a general nature and solely for educational, informational, and illustrative purposes.