Pasquale Sacchetta discusses navigating market risk
Listen to the interview on the Business Innovators Radio Network:
Market risk can significantly impact retirement savings by causing fluctuations in the value of a portfolio. During a market downturn, investments can decrease in value, leading to an overall reduction in the portfolio’s worth. This decline may force retirees to sell more shares to meet their income needs, especially if they rely on their investment portfolio for cash flow.
Pasquale underscores that during a market downturn, retirees may find themselves needing to sell more shares than they would in stable or increasing market conditions. This increased selling during a market downturn can have a compounding effect on retirement savings. Selling shares at a lower value means retirees may miss out on potential gains when the market eventually recovers, impacting their ability to generate income and potentially reducing the growth of their retirement savings.
Therefore, retirees must be aware of market risks and their impact on retirement savings. Understanding how market fluctuations can affect portfolio value and cash flow enables retirees to work with financial advisors to develop strategies to mitigate these risks. Diversification, proper risk assessment, and long-term investment planning are crucial factors that can help retirees navigate market volatility and safeguard their retirement savings.
The concept of true independence in financial advising refers to the freedom to use any product or service available to meet clients’ needs without being limited by proprietary lists or products. Pasquale Sacchetta stressed the importance of true independence in financial advising, going beyond mere lack of affiliation with a specific firm. True independence means having the liberty to act in the client’s best interests by utilizing any necessary products or services to help them achieve their financial goals.
Pasquale illustrated true independence in financial advising with an example where, if a client wished to invest in sheep in New Zealand through their IRA, a truly independent financial advisor should be able to facilitate that if it aligns with the client’s objectives. This flexibility and freedom to explore diverse investment opportunities are vital in tailoring financial strategies to meet each client’s unique needs.
Pasquale said: “Being independent means that you should be able to represent your client and use whatever product or service is available to help them meet their needs. That’s what true independence is. We do not have any kind of proprietary lists or products or anything that would preclude us from using whatever products or services we need to help our clients achieve their goals.”
Moreover, Pasquale emphasized the importance of transparency in the financial advisory process. Clients should have access to information about their investments and understand the rationale behind decisions made on their behalf.
Video Link: https://www.youtube.com/embed/Q3EBSgV6i7Q
About Pasquale Sacchetta
Mr. Sacchetta is President of Westport-based CFIG Wealth Management, LLC. He is president and an investment adviser representative of Continental Five Investment Group, LLC. He is a CERTIFIED FINANCIAL PLANNER® practitioner, an Accredited Estate Planner professional, and a Chartered Life Underwriter designee. He specializes in retirement planning, estate planning, and business planning.
Mr. Sacchetta is a member of the Estate Planning Council of Lower Fairfield County and the National Association of Estate Planners & Councils (NAEPC). He is a qualifying member of the Million Dollar Round Table, the Premier Association of Financial Professionals®.
Mr. Sacchetta was born and raised in Connecticut. He graduated magna cum laude from Connecticut State University in New Britain, received his MBA from Fordham University in New York City and his Chartered Life Underwriter (CLU) designation from the American College in Bryn Mawr, Pennsylvania. He is a life member of the U.S. Tennis Association and a member of the U.S. Golf Association. He is fluent in Italian.
Mr. Sacchetta was recently named in the newly released editions, and has been named in multiple previous editions, of the Marquis Who’s Who in Finance and Business, the Marquis Who’s Who in the East, the Marquis Who’s Who in America and in the Marquis Who’s Who in the World. He has earned numerous industry awards and distinctions. He has been quoted in local and national media.
Learn More: https://www.cfig-wealth.com/
Investment advisory services are offered through Continental Five Investment Group, LLC, a Registered Investment Adviser, 1555 Post Road East, Suite 206, Westport, Connecticut 06880
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