Many feel out of control in this investment market...do you?

It was interesting to read the other day a Dan Richards article, that many clients are feeling angry and frustrated with the issues in the USA. These issues are very real and affect clients and the world in a global sense.

There is a famous quote from Warren Buffett who said “be fearful when others are greedy, and be greedy when others are fearful". What does this mean? Buy things when there is pain in the markets...long term it can prove to be a wise decision (this is not for everything).

If you feel out of control here are a few ideas I think will help:

1. CALL or Book an appointment with your investment advisor. We are in many aspects emotional rocks for our clients. If we cannot give you comfort or provide you with options we are not doing our job. Face to face meetings are the best kind, telephone is second, and lastly email. So get into the office to meet with your advisor and if they do not have any options or view points for you…find a new one! :P

2. Remember your long term plan…go back to your main financial goals or your written Investment Policy Statement (IPS)…if you do not have financial goals…talk about this with your advisor…it is a MUST do! How do you get to where you are going if you don’t know where you are?

3. Risk tolerance…is this WAY out of wack? Are you more risky than you want to be…think about your risk reward ratio. What are you willing to take and what can you afford to take. There is a difference and the two go hand in hand. Make sure this is clearly stated to your advisor and discuss with them your preferences. As we age, we tend to naturally become risk adverse. Make sure this is reflected in your portfolio.

My grandfather, who was an investment advisor until he was 81, used to say, "this to shall pass".
Related Posts Plugin for WordPress, Blogger...