Without a plan, investors often make poor financial decisions, says Santa Rosa wealth adviser

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Tom Hubert

Senior vice president for auto, insurance and wealth services

Redwood Credit Union Wealth Management

CUSO Financial Services, L.P.

3033 Cleveland Ave., Santa Rosa, CA 95403

707-576-5288, 800-479-7928

Read more tips on and coverage of wealth management.

Tom Hubert is senior vice president for auto, insurance and wealth services at Redwood Credit Union Wealth Management in Santa Rosa. Hubert answered questions about wealth management from the Business Journal.

What difference does the age of a client make in what you suggest to them as an investment strategy?

The age of the client can contribute significantly to the desired level of risk. Recommendations are goal based, which are usually driven by life stages, so it varies by individual case. Our advice is tailored to a particular person’s needs and goals, which includes a time component. That time component can be affected by age but not necessarily in the same way for every person.

How do you help a client determine what level of risk they are comfortable with when it comes to investing their money? Are there key questions you ask to assess that risk?

There are key questions we ask to assess risk. Upon hearing the answers, we create a careful and thoughtful analysis to determine the member’s risk tolerance. This includes understanding their personal level of comfort, the ultimate goal (and the timing around it), plus a full understanding of where they are currently financially.

With faster technology, algorithms to pick stocks and instantaneous investments, are clients making more frequent moves with their money, not being content to stay with investments for the long haul? What do you tell them if you consider this approach unwise?

We don’t experience much of this, because we use a goal-based approach that aligns the individual’s portfolio with their unique risk tolerance. With a focus on education, the adviser team takes the time to help clients reevaluate the portfolio based on changes to their goals and then recommend appropriate adjustments.

What mistakes do you see individual investors making in the current financial climate?

The biggest mistakes are not having a plan and letting emotion play too large a part in financial decision-making. Making decisions on a portfolio based on emotional responses due to current events will lead to short-term decisions that may not be in one’s best interest in the long term. Once there’s a solid plan in place, remain disciplined and focus on the goal.

What is your best advice on planning for a financially secure future?

Taking an active role in your finances is the best thing you can do to improve your overall financial well-being. Financial literacy is extremely important when it comes to all areas of personal finance, including wealth management.

Many financial topics can be complicated, so we want to take as much time as necessary — and we encourage people to ask questions.

Disclosure: Nondeposit investment products and services are offered through CUSO Financial Services L.P. (“CFS”), a registered broker-dealer (member FINRA/SIPC) and SEC registered investment adviser. Products offered through CFS are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment representatives are registered through CFS. Redwood Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.

Tom Hubert

Senior vice president for auto, insurance and wealth services

Redwood Credit Union Wealth Management

CUSO Financial Services, L.P.

3033 Cleveland Ave., Santa Rosa, CA 95403

707-576-5288, 800-479-7928

Read more tips on and coverage of wealth management.

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