In the past three to four years, the stock market has provided investors with advantageous, wealth-building returns. It’s a welcome relief from the Great Recession, as the crash and volatility from 2007 to 2009 is being deemed by historians. This Stanley Funches knows well. But he also knows that today’s conditions won’t last, and he wants his clients to be ready for another ride on the rollercoaster.

“We’ve had several years with great market returns, but this is not going to be a constant thing,” Funches said. “We are going to go through a bear market pretty soon. So my goal for beyond 2014 and into 2015 is to make sure my clients and their portfolios are positioned to take advantage of good solid returns and are prepared to withstand any market downturns.”

“That means securing appropriate amounts of liquid assets, such as cash, as well as balancing portfolio holdings across a wide range of asset classes,” he said. It also includes mentally and emotionally preparing clients to hold tight and take a long term view of temporary losses.

As a partner and chief compliance officer for Bridgeworth, LLC, based in Birmingham, Ala., Funches knows the ups and downs of long-term financial planning. He encourages his clients to ride the highs and take advantage of unique opportunities presented by some of the market lows.

“Investors with a long-term outlook are able to take advantage of good buying opportunities when the market goes down, because they also have cash reserves allowing them to make investments that have the potential to pay off when the market recovers,” Funches said.

Making this happen requires discipline – not only from the investor, but also from the advisor.

“You (as the advisor) have to remain emotionally confident enough to help your client – to lead your client to stick through the low times,” he said. “That isn’t easy. It is the difficult part. But once you do it, then clients have the confidence to do it, too.”

Funches prefers clients who are goal-oriented and willing to not only accept his advice, but to take action based on that advice. He doesn’t think in terms of minimums, but instead gauges the passion and dedication of a potential client when deciding whether or not to partner with that person in reaching their financial goals.
Instead of taking a hit during the Great Recession, Funches actually gained clients, and his practice grew.

“When times are tough and hard, that is when more people seek advice,” Funches explained. “The people who think they can do it themselves during the good times are the ones who actually come looking for advice.”

Funches welcomes new clients but sticks with the qualification that they are willing and able to act on his advice. When he started his career as a financial advisor in 1998, he wasn’t as selective regarding clients. In his words, “Early on in my career, I tried to help anybody and everybody.”

He quickly learned that neither “anybody” nor “everybody” qualify as an engaged client. Funches admits that  this was the most important lesson in developing his practice. “You learn that some people do not take your advice. They might be willing to receive it, but they cannot act on it in the proper way,” he said. “I learned that this took time away from clients who really do rely on my advice to grow and prosper. I learned to concentrate on those clients who are serious, capable of taking advice and who are able to grow from it.”

His passion for financial planning comes from having been raised in a setting where financial planning needs were greatly under-served. While taking a business financial investment course in college, he became intrigued with investment strategies and financial planning. Looking around his college campus, Funches realized that he was attending classes with other students who themselves had a lot more wealth than he did, due mainly to the ability of their families to use financial planning tools. He decided to change his own destiny and that of others who previously did not have the training, experience or access to financial planning.

Today, he puts a significant focus on educating clients regarding changes in retirement funding. Despite the fact that many employers moved away from traditional pension plans decades ago in favor of defined benefit plans which shift retirement planning responsibility back to the employee, Funches knows that many workers still do not fully understand the ramifications. This – coupled with the reality that most Americans are living longer – gives him great cause for concern.

“It is going to be the biggest challenge in the next few generations,” Funches emphasized. “Helping clients make sure they have the right mix of investments in their company’s retirement plan is crucial, because in future years Social Security will only be a shell of its former self. So, with solid financial planning, increased focus on savings, and a sound investment strategy it is more likely for individuals to overcome all of these challenges.”

Learn more online regarding  Stanley T. Funches, CFP®, ChFC®, CRPC®, MBA and Bridgeworth, LLC at www.bridgeworthfinancial.com