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long-term care, or nursing home insurance is perfect. These are peo- ple who have multi-million-dollar net worths. To see all of their hard work, money, and possessions decimated by having to pay for a nurs- ing home is sad and unnecessary. Many of my clients have opted to transfer the risk of paying for nursing homes, rather than trying to self-insure or rely on family members.

However, you may find that you don’t require any type of insur- ance. Protection analysis looks at the different types of insurance and the most economically efficient ways to manage the different types of risk.

Investment Planning Do you enjoy sitting at your computer, trying to figure out which mutual fund is the best option for you? Chances are, you don’t. Today, there are so many different types of mutual funds, stocks, bonds, and investment choices, that it would make your head spin. An advisor’s job is to sort through all these choices and match spe- cific investment vehicles with your goals, needs, and time frame. Whether you are investing for the long term or short term will deter- mine what kind of product your money should be invested in. You don’t want your money tied up in an illiquid investment if you are planning to use the money in the next couple of years.

Before investing any money, it’s important that you communicate to your advisor how much risk you want to take. I give my clients a risk tolerance quiz. The quiz is six questions long, and it gauges how aggressive my clients wish to be. I’ve had more than a few clients come to see me and tell me that they are aggressive risk takers. Sure, we all are when the market is soaring to new highs and everyone is making money. But not many people are aggressive when the market starts to come back down, people are losing money, and stocks are hitting all-time lows. The truly aggressive people are the ones who are buying when the market is low. Many people want to become more conservative at that time. It’s human nature.

That’s why I give them the quiz. Once I score them as conserva- tive, moderately conservative, moderate, moderately aggressive, or aggressive, I can suggest investment vehicles that match up with their risk factors. It’s the quiz that helps determine the mix of invest-

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