Making an informed investment decision is paramount to your future comfortability and confidence. Thoroughly understanding why you chose a specific investment vehicle and how it works can help alleviate some of the stress that comes with market and economic uncertainties. Unfortunately, many focus solely on making money and beating the market, that they hear about a great deal and don’t stop to think twice about it before they jump right in. Proverbs 28:22 says, “A man with an evil eye hastens after riches, and does not consider that poverty will come upon him.” The old saying “if it seems too good to be true, then it probably is” applies to investment decision making, how we spend our money, and our finances in general.
If you’ve ever received an offer to ‘act now’, you should do the exact opposite. If you’ve ever come across a sales pitch that everything is positive, slow down, ask questions and do your homework. When you are only being told the positives about a particular investment, understand that there are always some drawbacks to it. There’s always a catch (though that doesn’t mean the catch is necessarily bad for your specific circumstances). Make sure you are not only explained the pros, but also the cons, so that you can make an informed decision. A financial advisor who only describes the pros and doesn’t describe the cons just as clearly, is not looking out for your best interests.
I encourage you to seek out the help of an advisor whose values align with your own and one who can clearly communicate to you the why and the how to any investment recommendations. In a future post, I will review some questions you should ask a prospective advisor to help you in your search.
If you have any questions or comments, please email me at Christopher.Hull@CeteraInvestors.com or call me at 716-707-1818.
Next Time: Legacy Planning
The views stated in this letter are not necessarily the opinion of Cetera Investors and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results.