The answer: an important one. While the value of such a relationship is difficult to quantify, the intangible benefits can be long-lasting.
There are certain investors who approach a financial professional with one goal: the “alpha” goal of beating the market. But even Wall Street’s smartest money managers can fall short.
Eventually, these investors realize that their financial professional has no control over what happens in the financial markets. They understand the true value of the relationship, which is about strategy, coaching and understanding.
A financial professional can provide guidance on today’s financial climate, set goals, and assess progress toward those goals. It can be difficult for an investor to accomplish any of these tasks alone. In addition, an investor can make self-defeating decisions. Today’s constant flow of information can provoke emotional behavior and lead to errors.
No investor is infallible
Investors can feel this way in a great year where every decision seems to be working well. But overconfidence can set in and the fact that markets have had a difficult few years can be forgotten.
A financial professional can help an investor make the commitment to stay on track
Through subtle or overt coaching, the investor can learn to accept short-term market volatility and focus on the long-term. A strategy is established based on the investor’s objectives, risk tolerance and time horizon.
As the relationship between investor and professional investor develops, the investor begins to notice the intangible ways in which the professional creates value. The expert can help explain the intricacies of investment trends and how potential risk often correlates with potential reward.
Perhaps most importantly, the expert helps the client cut through the “noise” and “buzz” of the financial markets to see what really matters in their financial life.
The investor gains a new understanding, a context for all investing and saving. Striving to build wealth and retire well focuses not only on success but also on meaning.
Richard H Mootz, CFP® CERTIFIED FINANCIAL PLANNER™ Professional, is a registered agent of and offers securities through Securities America, Inc., a registered broker-dealer, member of FINRA/SIPC. Advisory services are provided by Securities America Advisors, Inc., an SEC-registered investment advisory firm. Mootz Financial Solutions and Securities America Companies are not affiliated.
Richard H Mootz, CFP® CERTIFIED FINANCIAL PLANNER™ Professional can be reached at (530) 877-7007, email [email protected] or visit their website at www.mootzfinancialsolutions.com. Securities America and its advisors do not provide tax or legal advice. Please consult your tax or legal advisor regarding your individual situation. CA insurance number 0C75924
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