It’s that time of year again when I am gathering up all of my continuing education credits for my license renewals. In talking with several other financial professionals, I am saddened to hear that many of them who like me were promoting buy and hold strategies were now selling client assets and going into cash. Why would they do this? Let’s look at some of the facts:
Client pressure – many clients fill out a Risk Questionnaire when they start out with a Financial Advisor. Many of these questionnaires failed to correctly help Financial Advisors understand the investment risk that clients could tolerate. Many clients claim to be able to handle high risk for a high return and then panic when their portfolio drops more than 10%.
Do you see yourself here? Do you really understand the risk you have in your portfolio. Are you comfortable with that risk?
Loss of Revenue - Many Financial Advisors who manage money do so under a AUM (Assets under Management) method. That means when the market is up and you are making money, the Financial Advisor does too, and when the market is down, you lose money and your Financial Advisor does too. But when we have a severe market downturn like we do now, will your Financial Advisor sell assets to protect you or to protect his/her firm from losing a lot of revenue?
Do you know why your Financial Advisor is selling your positions? Is he/she acting in your best interests?
I believe that you can do better. Over the next few weeks I am making available a limited number of slots to work with me, one-on-one, in a brand new mentor program designed to provide the fundamentals you need to create financial success. I will be holding a preview teleclass to walk you through what you will receive in The 7 Steps to Creating Your Own Financial Plan Coaching Package or Teleclass Series.
At the end of the class you will get the opportunity to sign up (at a discount for early birds) for a one-on-one Coaching Package that will help you develop your own plan for success and financial independence or you can sign up for my series of teleseminars that will start in April. Both will include an audio of the recorded calls, a transcript of the calls, and a download-able workbook so you don’ have to worry if you can’t attend one or more of the calls. All the information will be there for you to review over and over again. For more information click here.
