Michal Opp discusses understanding the importance of purpose-driven and performance-driven accounts.
Listen to the interview on the Business Innovators Radio Network: https://businessinnovatorsradio.com/interview-with-michael-opp-founder-of-opp-financial-purpose-vs-performance-fiduciary-concerns-purpose-driven-accounts/
Understanding the difference between purpose-driven and performance-driven accounts is essential for effective financial planning. In a podcast episode, Michael Opp stresses the importance of recognizing these distinctions to help individuals reach their financial goals.
Purpose-driven accounts are designated for specific obligations such as bills, mortgage payments, insurance, and other essential expenses. These accounts serve a specific purpose and are not intended for growth or high-risk investments. The primary focus of purpose-driven accounts is to ensure that the necessary funds are available to meet financial obligations without exposing them to market volatility.
Performance-driven accounts on the other hand, are not tied to specific obligations and offer more flexibility for growth and investment. These accounts provide individuals with the opportunity to pursue higher returns through various investment strategies, including those with higher risk levels.
By clearly defining and segregating purpose-driven and performance-driven accounts, individuals can better manage their financial resources and mitigate risks. Understanding the distinction helps in aligning investment strategies with specific financial goals and timelines.
Financial advisors like Michael Opp play a crucial role in helping clients differentiate between purpose-driven and performance-driven accounts. Advisors assess individual needs, risk tolerance, and financial goals to tailor investment strategies that align with clients’ objectives. Providing a comprehensive financial plan that incorporates both types of accounts can offer clients peace of mind and a structured approach to achieving their financial aspirations.
The podcast also highlights the benefits of hybrid investments for retirement security. Hybrid investments offer a unique combination of both safety and growth potential, providing investors with the best of both worlds. Unlike traditional bank CDs, where the rate of return remains stagnant regardless of market performance, hybrid investments allow investors to benefit from market gains while protecting their principal from market downturns. This provides investors with peace of mind, knowing that their investments are secure while still having the opportunity to grow their wealth.
Michael shared: “These inflationary times that we’re in right now, people are not just worried about protecting their principal, but they need to keep up with inflation. And so, if you’re relegated to low-interest-rate investments, you have to find ways to keep up. These hybrid types of investments that they’re offered, through insurance companies or even large financial institutions have been a game changer for our clients.”
About Michael Opp
Michael has been working in wealth management for over 25 years. He holds a Series 65 license and Insurance license. As a Fiduciary, he has provided financial services to business owners, families, and individuals. Michael has access to a wide array of financial assets. Enabling him to successfully meet the financial planning needs of his clients while building long-lasting, meaningful relationships with them.
Michael received a B.S. in Business Administration and a minor in Economics in 1992. Michael’s belief in being a well-rounded individual, allowed him to compete in college football and track at the University of Redlands in California. He continued to compete in the track and field circuit until just after the 1996 U.S. Olympic Trials. This experience compelled him to give something back to his community. Michael coached high school, youth football, and track and field for over 17 years. He also has been married to his wife, Tamalynn since 1996. They are proud parents of three children Brady, Lance, and Elena.
Learn More: https://www.oppfinancial.com/
Recent news and interviews:
- Michael Opp Discusses Guaranteed Investment Income to Meet an RMD Strategy:
Advisory services offered by Wealth Watch Advisors, LLC. All other services are offered through Opp Financial Group, LLC. Wealth Watch Advisors, LLC and Opp Financial Group, LLC are not affiliated.
