This May be your Portfolio’s Most Lucrative Investment

This May be your Portfolio’s Most Lucrative Investment

When managing your wealth assets, there’s more to investing than stocks, bonds and real estate. You’re financially savvy, know your goals, and understand the steps to achieve them — but no matter how secure you are in your plan, having an outside set of eyes to review it is nothing short of invaluable. A good financial advisor can suggest avenues of action you may have missed, provide valuable insight into diversification strategies, and caution against moves that involve unforeseen risk.

Human Error

As much as we may wish otherwise, human behavior is not governed by logic. A dieter can’t simply wish to desire healthy foods, and thus avoid chocolate cake in favor of carrot sticks — the desire itself is a constant that eludes modification. Similarly, financial management involves a significant degree of emotion. Risk tolerance or averseness is a matter of personal psychology, and is further influenced by the investor’s perception of the current market. Introducing a professional — someone who has no personal stake in the portfolio, but rather an objective interest in seeing it grow efficiently — into the mix is a powerful way to optimize your goal achievement.

Choosing Early, Choosing Wisely

All too many investors wait until a moment of crisis to find a financial advisor, and are disappointed when the professional can’t simply wave a magic wand to dissolve the problem. As with so many things in life, preparation is the key to victory.

Evaluating a Potential Partner

Your financial advisor isn’t just there to look at your investments in terms of black and white: they should be true partners in the mission of sustaining your financial future. This means they should clearly understand the nuances of your portfolio, interests, and desired direction.

One thing that many investors don’t know is that the term “financial advisor” has no official licensure or education associated with the title. Similarly to “therapist” as opposed to “psychologist,” nearly anyone can hang a sign declaring themselves a financial professional and practice to their heart’s content. However, at a minimum, there are a few criteria you should look for when hiring a financial advisor. First, make sure the adviser is a Certified Financial Planner (CFP). Also, to make sure that your advisor works on a fee-only basis. If you hire an advisor who receives commissions—essentially a salesperson—you may never know if their recommendations are in your best interests or simply designed to hit their sales target.

Personalized Financial Planning & Wealth Management

If you are ready to begin your journey with the help of a dedicated financial professional, visit the OptiFour homepage to find out about our comprehensive suite of wealth management services.