Am I implying that making changes to your investment portfolio is a bad thing? Essentially and for the most part, yes – except in the case of rebalancing your portfolio back to its targeted allocations, which technically speaking isn’t considered a change in your portfolio. Here’s why.
You visit an advisor. He or she
helps you put together what virtually any financial professional would claim is
the best possible portfolio to help you achieve your long-term financial goals,
be it retirement or college funds for your child or grandchild. Then in a
matter of just a relatively short period, without any significant changes in
your life that necessitate altering your investing profile, you need to make
changes?
Let’s think carefully about that
picture. What does it tell you about an advisor if they are constantly moving funds
around? I interpret it along these lines: they don't really know what they’re doing,
where they’re going, or how to get there. They were hoping this portfolio they suggested
might do the trick. But, now, based on what the stock market is doing, they think
that other one will be better instead. Does this sound like what you want your
advisor to be doing with your hard-earned investment money?
It’s interesting, but some people
actually see this destructive behavior as a sign that a financial advisor is
smart and on top of things. The opposite is true, in my opinion, simply because
no one can predict what is going to happen tomorrow. So if your investment
strategy revolves around reacting to short-term market movements, you should
think twice. In fact, any time your advisor alters your portfolio in this
manner, it is indicative of only one thing: that he or she got it all wrong
previously. Isn’t it?
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Visit LaserFG.com or call 877.656.9111 right now to book your complimentary, confidential consultation with a financial professional who has your best interest at heart and who is willing to ask the right questions to help you make a plan that will get you where you want to go. You’ll be paired with an experienced financial professional who can help you plan for a secure future, regardless of your current financial situation. Retirement planning means planning for ALL aspects of your life after retirement. If you’re ready, we’re here to help.
