By Prime Time Staff

Albuquerque’s own Virginia “Ginny” Stanley is one of the nation’s top financial advisors, contributing planning advice regularly for such publications as The Wall Street Journal, USA Today and Fortune magazine. Originally from Duluth, Minn., Stanley moved to Albuquerque in 1974 after graduating from the College of St. Teresa, where she earned a Bachelor’s in psychology and philosophy. She studied business at the University of New Mexico. Stanley met her husband, a Duke City native, and never left. They have one daughter, Adrienne, a poet, writer and book arts graduate student living in San Francisco.

After training as a tax professional, Stanley “stumbled upon” financial planning due to the types of questions her clients were asking. She became active in the NMSCPA (New Mexico Society of CPAs) PFP committees, the AICPA (American Institute of Certified Public Accountants) PFP committees, and the CFP Board Activities – “basically to promote and improve standards within the profession,” she said. “From a client perspective, I love to help people through difficult times (death, divorce, chaotic family issues) so that they can set aside the financial concerns and get on with the business of living.

There is a great sense of accomplishment in helping people gain some peace of mind.” Stanley is now a principal partner in charge of REDW Stanley Financial Advisors, LLC, an SEC-registered subsidiary of REDW The Rogoff Firm, which has been serving Albuquerque for many years. She has the distinct honor of being one of Worth magazine’s “Most Exclusive Wealth Advisors” six times. Stanley is particularly skilled in helping clients establish focus and direction in their financial lives. She started out as a small business owner before moving into real estate investing. Those combined experiences developed her technical capabilities and communication skills and enriched her personal experience. We have long had her on our radar to sit down and share her perspective with Prime Time readers.

Prime Time: Are Americans still in a down economy?

Virginia Stanley: Media, economists, politicians and newsmakers tend to amplify their opinions, so I tend not to agree with most newsmakers who attempt to characterize the economy as doing really well or very bad. I believe we are in recovery, but the recovery will be slower than most we have experienced in the past. There are good signs: savings is no longer negative, spending is increasing, profits are up (albeit maybe somewhat inflated), credit markets are slowly returning, and real estate is either at the bottom or close to the bottom. The caution is that short-term economic growth will be slower than in the past, so unemployment will remain higher than in the past until sustainable jobs can be created. It will likely take two to three years to come out of this.

Prime Time: With these tough economic times, are there financial opportunities that can be seized?

VS: Down markets create buying opportunities. Usually, there is a period 6-24 months coming out of recession when the markets will often outperform. Certain asset classes will often lead the way out of a recession or generally outperform other asset classes during this timeframe. Emerging markets and internationals are continuing to perform well. Small- and mid-cap equities generally lead the way out of a recession and continue to do well. But there is no substitute for a well-rounded, planned and executed asset allocation.

Prime Time: Should people re-evaluate retirement plans or get new ones based on economic trends?

VS: Everyone, particularly those in retirement or approaching retirement, should review their existing plan. If they do not have a plan, they need one. I would not say they need a new one, because that depends upon individual circumstances. For individuals who are short on retirement funding, four options should be considered: • Is it possible to increase income? (a second job, new revenue sources, etc.) • Can expenses be cut enough to make up some losses? • Can underutilized assets be sold? (items you really don’t need or want, such as the timeshare or condo you don’t use or the motorcycle no one rides) • Retire later than planned or redefine what retirement means. Everyone needs to reassess his or her risk tolerance and time horizon and make sure they have an appropriate asset allocation for their circumstances that is consistent with their plan.

Prime Time: Should we be saving more than we are investing?

VS: Everyone should have a basic savings that consists of two components: A small immediate fund for those little things that come up – about one paycheck (this might be excess in a checking or savings account), and three to six months of net living expenses. Once these two basic savings are achieved, an individual should invest according to a planned strategy, based on risk tolerance, time horizon and needs. Trying to market time investments generally results in underperformance, so it is very important to take the emotion out of investment decisions. This is where an investment advisor can really add value. For individuals with a very low risk tolerance, savings and CDs may be more appropriate than investing in the markets.

Prime Time: What’s your strategy for investing in these challenging economic times?

VS: Investment strategy should depend upon an individual’s risk tolerance, time horizon and needs. There is not one strategy that makes sense for everyone. I would recommend finding an investment advisor who is reputable, knowledgeable and trustworthy. Then ask what value the advisor can provide. Trusted communication and full disclosure of fees and expense is extremely important in a successful advisor-client relationship.

Prime Time: What investment tips would you offer readers?

VS: Here are some of my favorite investment dos and don’ts: • Invest according to a well-defined strategy and stick with it unless the plan is revised • Know your risk tolerance • First determine an appropriate asset allocation based upon time horizons and risk tolerance • Diversify within each asset class and economic sector • Know investment costs, fees and expenses – minimize expenses • Fund your 401(k) with at least as much as is required to get maximum employer match – it’s free money • When changing jobs don’t withdraw plan money – leave it in or roll it over • Don’t chase performance – keep emotions out of investing

Prime Time: What source of financial information would your recommend?

VS: There are many good sources of information, but my favorite remains The Wall Street Journal. If I only had time and/or money for one publication, that is what I would choose. Great financial information, human interest stories and national and international news. The other resources would be really good advisors are attorneys, accountants, investment advisors, financial planners, and/or insurance professionals, depending upon your legal and financial needs.

Prime Time: What do you think have been your most important guiding inspirations or mottos to live by?

VS: 1) Be honest with yourself and speak your truth. 2) Try to do a little good every day. 3) Always look for the opportunities life presents, and do your best at whatever you choose to do.

Prime Time: What is your greatest natural talent?

VS: I’ve been told I’m perspicacious. I’m not very patient, but I am very persistent…a very good quality when problem-solving. It makes me continue to look for solutions when there seem to be none. PT: What do young people between 20 and 40 need to be looking at? GS: Begin saving and investing early because of the compounding value of money over time. Start small and look for opportunities to save. Learn about finance so that you have the basic tools to make sound financial decisions. Look for a copy of Financial Planning for Dummies or Investing for Dummies to get you started.

Prime Time: What do you think people 50 to 80 years old should be paying attention to right now in the national debate regarding healthcare, the global economy and lifestyle?

VS: Probably not the answer you were expecting, but I think the right answer is what do you want out of your life and what mark do you want to leave? In other words, let’s look at what is really important to you and make sure you manage your assets (all of them, not just financial) to achieve out what is important to you – regardless of what is going on the world. The Internet has made us so time sensitive and issue conscious that we can easily forget the important stuff until there is a crisis.

February 2010 / 02-2010