Ask a trusted advisor for a referral. They are not going to put their reputation on the line for someone they don’t completely trust. Then, do a little research; What kids of reviews do they have? How long have they been is business? What kinds of testimonials do they have and who made them?
So how long has your Financial Advisor been in business and how successful have they been? Ask to talk to a few of their clients. They may hand-pick them, but at least you will know how they communicate and if they follow through. Ask things like; What types of returns do they average? Average cost to manage their money? Do they have annual reviews? Etc…
According to the DalBar Studies over the past 30 years the stock market has averaged between 11% and 12%. However, individual investors have made only 3.5% to 4% over the same period and if they had an advisor the return increased to almost 6%. Most advisors charge at least 1% to manage money, but you need to know how much your being charged with all fees included… it should be somewhere between 2% and 2.5%.
So how does your advisor pick the investments you are going to buy? What is their system? How are they limiting your risk? Is your Advisor buying the same investments you are buying? Does your Advisor even invest in the market? Ask them a few questions, this information will tell you a lot.
First, historical performance on the information is the real challenge. These things will help you to find the right Financial Advisor! can help us to see trends and to learn from the past Things like diversification, dollar-cost averaging, and our risk tolerance can help to spread the risk and decrease volatility. The stock market works, but consistently capitalizing on this information is the real challenge! These things will help you to find the right Financial Advisor!
The stock market is random and unpredictable. However, there are some who believe they can master anything, and to those of you who are wired this way, we have provided the following exercise or test below. The stock market is random…the following exercise or test below.
If you could have invested $10,000 in the stock market in 1933, and you could choose one of the companies listed here, which one would you choose?
They say hindsight is 20/20 so you are getting the benefit of knowing most of these companies and their track record over the past 85 years!
Your Financial Plan has multiple components, all of which are important for you to become financially self-reliant. Budgeting and Debt Elimination are the catalysts of any good financial plan. Emergency Savings together with long-term and short-term savings add fuel to the fire. Risk Management then helps to protect you and your assets/liabilities from unforeseen problems. This allows you to turn your liabilities into assets, giving you the ability to use the payment savings to grow your retirement nest egg.
While all of the things mentioned are important to building your Financial Map, the acquisition of life and disability insurance allows your dreams to be realized even if there is a future catastrophic event, that would otherwise have compromised your plans. It’s a balancing act, where each of the blocks you have carefully stacked could come toppling down without the support of the others. Ask an M3 Wealth Financial Cartographer or guide how to build a solid self-completing Financial Map!