The Value of an Advisor in Tumultuous Times
by Christine Van Meter, M.B.A.
Let's face it: the headlines are full of scary news.
This morning, I poured over all the news coming out of Greece, where, as I write, the banks are closed and depositors are allowed to access only 60 euros per day through the ATM machines. ISIS continues to spread terror through the Middle East, and is striving to reach our shores with its demented brand of violent sectarian strife. Oh, and did I mention that China has hacked yet another important computer database?
What is the world coming to? How can we possibly save for the future in such tumultuous times as these?
One of the chief values of a financial advisor is to help you make rational decisions about your finances and your future in irrational times. In making financial decisions, fear is your worst enemy. The famous mutual fund pioneer Jack Bogle recently told an interviewer that a good financial advisor will help dissuade clients from making the wrong decision at the wrong time.
As scary as the world seems today, is it really any less tumultuous than in the past? How do you think our parents and grandparents felt when they listened to the news that Pearl Harbor had been bombed? Or that Russian missiles where being installed in Cuba? Or that OPEC was embargoing our oil shipments?
Diversification, balance and a sound understanding of your personal investing goals and risk tolerances provide the foundation for successful investing over the long-term. Not only can your financial advisor help you implement this foundation, but he or she can also help you to avoid taking undue counsel of your fears as the relentless news cycle reminds us that the world around us is a troubled place.
Photo credit: Les Chatfield @ Flickr