Rich Best has spent 28 years in the financial services industry, as an advisor, a managing partner, directors of training and marketing, and now as a consultant to the industry. Rich has written extensively on a broad range of personal finance topics and is published on several top financial sites. Recent books include The American Family Survival Bible and Annuity Facts Revealed: What You MUST Know Before You Invest. |
In Search of the Right Financial AdvisorUnquestionably, investors have enjoyed one of the longest bull markets in our history. It has been a great time to invest and, if history is any indication (though past performance is no guarantee of future results), it still is. While bull markets don’t last forever, no one is in a position to know with any degree of certainty when it will end. But here is what we do know: when the next bear market comes, another bull market will follow. 1 However, whether we are in a bull or bear market, the larger risk is attempting to go it alone. It’s in times like these, when uncertainty begins to creep into our psyche, that a good financial advisor is most valuable. No one has a crystal ball that will tell us when the next bear market will begin. But a good financial advisor - especially one who has experienced big market declines, such as what occurred in 2008 - knows how to arrange an investment portfolio in such a way to capture returns in a bull market, while minimizing volatility and losses in a bear market based on your risk profile. The challenge for investors is choosing the right financial advisor for their needs, preferences, and circumstances. There may be hundreds or even thousands of advisors to choose from in your area. Taking a moment to understand what you need and want from an advisor can help you narrow the search. What Exactly Do You Want from a Financial Advisor? When it comes to financial advice, the value you receive has more to do with whether the advisor can meet or exceed your expectations, and less to do with fees and investment performance. However, unless you know precisely what you want from an advisory relationship, fulfilled expectations may not hold much value.
The more you understand what you want in an advisory relationship, the more prepared you can be with the right questions. A good advisor understands your questions are important to you so you shouldn’t feel as if you need to hurry through them. As you become more educated on what constitutes sound advice, and more aware of what you are actually receiving, you can look past the irrelevant titles and ignore the mass marketing to make a rational determination of what a quality advisor looks like. 1FTPortfolios.com. History of U.S. Bear and Bull Markets Since 1926. June 28, 2019 Read Other Small Business Financial Articles |