A lot of people sometimes wonder what makes knowledgeable, competent and professional financial advisors. Is it the clothing they wear, their manner of speaking, the way they explain things, their accomplishments? We have heard of many analysts say that financial advisors should know how to manage the emotions of their clients especially during these times that the market has been volatile for a long time and most sectors are down. On top of that, economic conditions within the country and other nations like China and the Middle East contribute to various conditions like the oil being at such lows. Of course, who wouldn’t be worried especially among people who have various savings and investment accounts that they have purchased in preparation for retirement or their children going to college?
Here is our advice. Financial advisors should not try to just manage your emotions. Your emotions are yours alone. We cannot control that, as much as we cannot control what goes in the market. Any advisor who tries to do so might not be doing his job pretty well.
What you must hear from your financial advisor is the assurance that your financial plan was designed around safety mechanisms to ensure that you have enough income to last a lifetime. He needs to help you understand that your investments are protected against something uncontrolled such as market downturns and disruptions. He must have educated you in a way that your financial plan took into account some volatility that may happen in the future. He helps you manage your expectations, rather than try to manage your emotions. We shouldn’t be dictating how you feel about market conditions. We ought to be here to help you understand how much you have, what works, and how it affects you.
With that in mind, how about you call us for a complimentary consultation? East Coast Tax and Financial Planning is a team of qualified professionals who provide full service tax, investment, and insurance services.