As students of Behavioral Finance (how people make money decisions), we've witnessed a trend toward self-directed investing and financial planning. Some recent studies point to the fact that a growing number of investors prefer managing their financial interests without professional assistance.
Not surprisingly, we think this approach is risky. We believe that hiring a professional to help you get and stay organized, hold you accountable for reaching your financial goals, and proactively watch over your assets is vital for long term financial success. After 25+ years of working with literally thousands of people on their financial planning we have identified six key areas where we provide value.
- Getting and keeping your financial house in order
Do you ever feel like you have so many statements from so many different accounts that it’s hard to keep them all straight? Estate planning documents here. Investment confirmations there. Insurance policies in that cabinet. Investment accounts at multiple different companies. And old 401(k) plans left behind that you've almost forgotten. Many of the folks that we talk to have taken a lot of positive steps in their financial lives, but just lack a cohesive plan.
Wouldn’t it be nice if you could access, view, and manage all the aspects of your financial life in one simple way? We can help you make that happen!
- Accountability to your financial goals
What do a celebrity fitness trainer and a financial professional have in common? Surprisingly, a lot! Just as a personal trainer holds you accountable to your fitness goals, as financial professionals we hold you accountable to your financial goals.
We don’t make up your goals for you -- you choose your own goals. It’s our job to coach you as you work toward those goals.
If you’ve ever tried to reach a fitness goal, you know how hard it can be to get up early, get dressed, and get to the gym. But if you have someone there waiting for you, it makes things so much easier. That added level of accountability can make all the difference. It’s why celebrities stay in such great shape. They have someone working on their meal plans, their workout plans, measuring their progress, and holding them accountable.
- Coaching you through the emotions of investing
Have you seen those cartoons where the heart is on one side and the brain is on the other as they argue about something? The heart is all feeling; the brain is all thinking, and the two just can’t come together. We often see this phenomenon when it comes to financial matters.
- An adult child should learn to be independent, but mom and dad just can't stop giving handouts -- even when it hurts them financially.
- A stock is tanking in value and all the data supports selling it but the investor can’t let it go because they “just feel that it’s going to come back up”.
- A “hot” stock has been soaring for months. The price-to-earnings ratio is off the charts and it’s definitely not the right time to buy. Yet, the investor buys it anyway because their golf buddy was bragging about it.
These are just a few examples of how emotion can cloud logic when it comes to financial matters. It’s when you encounter scenarios like this that help from a financial professional can be so valuable. Having a partner who isn't emotionally involved in the situation can help cooler heads prevail. Part 2 here
👉 Read more about the emotions of investing.
Questions about this material? As always we're here to talk.
Text or call for answers 309-925-2043.