What types of investments are the most solid and how does my Financial Advisor help me find them?
Investing is not a one size fits all endeavor. If anyone can answer the first part of this question without doing a serious and comprehensive financial plan then they are an investment broker, not a financial advisor. Essentially, just as a doctor cannot prescribe the correct treatment without testing and analysis, a Financial Advisor needs the full picture before they start to offer advice and ‘treatment’ for your financial portfolio.
As a Financial Planner– as it comes to investments–I believe you first need to determine the time frame for which you are investing. There are investments such as CDs that can protect principle up to guideline amounts, however, they may not keep pace with inflation and after taxes could yield a negative net return. Thus it is important to determine the length of time you have to invest as well as your NEED to determine what return to strive for and consider the risk of each alternative versus the need for higher returns.
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=9ccdde40-438b-429f-bb8c-578c2dc33a2d)
When should I think about discussing my finances with a financial planner?
You should consider talking to a Financial Advisor when you are making a life change such as getting married, having children, changing jobs or have some financial questions outside of your personal expertise. Don’t assume that you can find financial answers on the internet. You are about as likely to become an expert in financial planning over the internet as you are to become a brain surgeon.
Financial planning takes into account many different aspects of the current marketplace and a strategic financial plan helps those aspects to work together for the greatest reward. This isn’t something that a novice to the financial world can understand fully and create for themselves after doing a little internet research. So, don’t do it yourself! Your financial future is rather important to plan for properly the first time and you don’t always get a second chance. Rather than searching the web for good investments, most should start by searching for a good financial planner.
A few tips to finding a good Financial Planner:
- You should find a financial planner who you feel listens to your concerns and desires. This is your financial plan and needs to focus on what you want to accomplish.
- You should expect a series of appointments, often 2-4 before doing any investing. (Anyone giving investment recommendations at the first meeting is not a true financial planner.)
- You should expect a written financial plan that covers the areas of:
Investments
Retirement Planning
Education Funding
Risk Management/Insurance
Estate Planning/Trusts
Tax Strategies
Note:
As important as finding a financial advisor is deciding on a financial plan and sticking to it. Most people start with a strategy and the minute it starts to not work perfectly they will give up on it and change to another strategy or another advisor. Though a few changes may be needed, “Don’t throw the baby out with the bath water.”
*Troy is a financial advisor offering securities through First Allied Securities, Inc. A Registered Broker/Dealer member of FINRA/SIPC
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=78c9a84c-31e8-4ebc-b8c7-d7c6371ba494)
Why do I need a Financial Planner?
A Financial Planner can play an important part in how you achieve your financial goals. They look at your full financial situation then create a plan and strategy to help achieve your goals faster and more efficiently.
Financial planners are knowledgeable in areas of investment, risk management, estate and trust work, tax reduction strategies and more. Using this knowledge they can make sure that all of these areas are working together effectively to help protect all that you have worked so hard to achieve. A Financial Planner doesn’t just do investments, but they can help you to invest your money wisely.
A study done in 2005 showed that the average growth mutual fund investor had earned an annual average return of less than 4.5% while the average growth mutual fund had returned better than 10% for the same time period. This study suggested that people moved from fund to fund based on “emotional decisions” that had hurt their performance. By having a financial advisor to keep you emotionally distant, you can make logical decisions that can help avoid major investment mistakes.
A financial advisor has access to a world of financial products and services that you may not be able to access on your own and will weed through a huge spectrum of options to find the best ones and eliminate the poor ones.
*Troy is a financial advisor offering securities through First Allied Securities, Inc. A Registered Broker/Dealer member of FINRA/SIPC
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=e62e5794-830b-4714-8281-dfa2ef13a1c5)
