Many of us are planning to rely on our current investments â€â€stocks, mutual funds, bonds, 401(k)s  to help us through ourretirement years. We also may be planning on using some of thoseinvestments to fund college or to supplement our income. However,with today’s market volatility and investment trends, researchingand understanding the financial market and working toward beingfinancially secure, it is easy to feel overwhelmed and confused. Andif you’re like many busy professionals, you don’t have the time to sortthrough information necessary to make sound investment decisionsor keep up with economic trends and industry news.
Regardless of your level of investment expertise, there is a resourcethat can help you navigate through the financial markets andget you on the road to achieving your financial goals. Maybe yoususpect you aren’t investing as much as you should, and you’re wonderinghow to create a comprehensive, long–term investment planfor the future, or perhaps you need help answering questions aboutfunding your retirement, educational fund, or estateplan. What you really need is a partnershipwith a financial professional to help guide youthrough the complexities of investing.
What can a Financial Professional do for me?
Basically, a financial professional becomesyour “partner” in the road to attaining your financialgoals. Your financial professional willultimately provide you with knowledge andadvice and assist you in carefully developing anindividualized financial plan tailored to yourparticular circumstances, investment objectives,risk tolerance, and expectations.
How to Find the Right Professional
There are several important factors to think about when youconsider working with a financial professional (e.g. identifying yourneeds, researching different advisors, gauging experience, checkingreferences etc.), and each one of them is vital to finding the right person.Every financial situation is unique, so a consultant who workedwell for a friend or family member might not necessarily work wellfor you. Make sure that there is a good fit with the financial professional’spersonality and communication style, and then make sureyou feel comfortable working closely with that person on a regularbasis.
Keys to a Successful Partnership
Communication
Consistent communication with your financial professionalis critical in order to stay on track in attaining investment success.Keep in mind that life changes that occur may affect your goals orrisk tolerance, and you may need to make an adjustment to yourportfolio. That’s why it’s so important to schedule semi–annual andannual portfolio reviews and keep the lines of communication openat all times. As your needs evolve, you will need to communicateyour preferences or concerns, so that your investment strategy isconsistent with your changing circumstances.
Teamwork
Not only is communication essential between you and yourfinancial professional, but your financial professional should alsowork closely with your tax advisor and attorney. Consistent communicationamong everyone who helps manage your finances willallow all parties to have the same understanding of what you hopeto achieve, and everyone will be able to better work with you.
Discipline
Your financial professional should also help with providingmuch–needed discipline in attaining your goals, especially duringvolatile economic times. If you’re worried about market turmoil andrapid movement, your financial professional can help you weatherthe ride by offering objective advice on how best to achieve success.They’re there to help you divert the potentially negative impact to aportfolio when emotionally–charged decisions may occur.
Diversify
The old saying, “Don’t put all your eggs in one basket,” applies toinvesting too. Your financial professional should help you allocateand diversify your funds, offering recommendationsthat meet your particular individual goalsand objectives. Perhaps you’re building wealth,retaining wealth, saving for college, or may beentering retirement. Each portfolio should becustomized to what comfortably suits you best,for your particular situation and time frame toachieve your goals.
Fees
As you know, there are various types of fees involvedin investing, including commissions paidfor purchasing or selling stock as well as fees based on assets undermanagement. Your financial professional should explain each typeand make the recommendations that are best suited for your portfolio.Be sure to ask questions so that you have a full understandingof any fee structure, and how it affects your portfolio.
Expectations
You should expect the professional to provide a full explanationof why you may want to follow a certain recommendation, so you’recomfortable and knowledgeable about your investment decisions.You should also expect detailed quarterly reports and timely updateson the performance of key investments.
For many sophisticated or experienced investors, the ride to investmentsuccess hinges on frequent communication and the trustbuilt through a relationship with a financial professional. Whetheryour goal is to create or distribute wealth, plan for retirement, orpass along a legacy, be selective in choosing a financial professionalwho will understand your goals and work with you to secure yourfinancial future.
Securities offered through SWBC InvestmentServices, LLC. Member FINRA & SIPC.
