With every business relationship one embarks on, it’s important to realize what the relationship means. How will it benefit you? How will you benefit the other person? Is it going to be a short-term thing? Or are you in it for the long haul? Will your needs be met in the new relationships? As a financial planner, my role in providing for clients is extremely important. Their livelihoods and futures are in my hands. That’s not something I take lightly. I want to be able to provide the best service for each and every one of my clients. I urge everyone to follow these seven steps, whether you’re a client or not.
- Set a reasonably attainable investment return objective. Everyone would love to wake up and be billionaires, but that might not be a realistic financial goal. Take an honest look at your finances and decide on what you want but what is also obtainable.
- Let compounding play a key role in growing your wealth. Use the banking system to your advantage. Let the investment cash remain in place for a long time to allow the power of compounding to become a significant contributor to your wealth accumulation.
- Try to avoid the urge to dip into your investments or savings accounts. Stay strong to reap the most from your investments.
- Invest for the long term. A lot of people say they’re long-term investors, but when the market dips in a correction or has a crash, you see them making knee-jerk reactions. Investing for the long term means not changing course because of short-term fluctuations in the market.
- Don’t chase investment fads. Find the tried and true investment methods that will bring you the most return on your investments.
- Don’t try to be a market timer. Nobody has succeeded in second-guessing timing around market fluctuations. Don’t play games with your future.
- Only make investments that allow you to sleep well at night.
Make sure you know what your advisor’s doing, and be well informed about those choices. Remember your advisor is working for you. You have the right to question his decisions.
For more information about how to ensure your financial advisor is working for you, visit tswealth.com.
