Common sense has told us, only the gifted people from New Orleans can read a crystal ball. Not the advisor you hand your hard earned money to invest. So when the advisor tells what to buy and/or sell – The First Question You Should Ask is WHY. The second question to ask, before allowing them to “pull the trigger” and generate a commission is, “How Do You Know This?” Don’t stop there, the more questions, the better, how about this one, Exactly, how much am I paying you to make this transaction?” or “How much money can I lose?”
Telling THIS GUY
I can read the Future
Investing and Speculation are not the same. Historical data tells us that Long-Term Investors are rewarded because Markets Work. Speculation immediately rewards the broker, without risk, and the firm.
Speculation is unpredictable and carries a high degree of risk. Common Sense tells us this is not smart investing, but more like gambling.
So, the next time your broker calls you and pitches any investment, ask this question, “How does this fit into my overall financial plan and does it adhere to my IPS? (Investment Policy Statement) — that’ll take them for a ride, if it doesn’t, you are probably in good hands. If they stumble around … CALL ME! We’ll work together to get your investments aligned with what you want and what you need.
Mindful Money is a publication that is strictly the opinions of, me, Charles Kochel. If you have questions or concerns about my blog, or the advise and process your advisor is giving you, Email me … firstname.lastname@example.org
I believe in a well-diversified portfolio aligned with what you want and what you need. Further, an investment policy statement or an agreement between you and your advisor that your investments adhere to the agreement. Our team of advisors helps people make the best use of their financial resources. Freeing time to do what matters most. Do More of What You Love.