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Advisors and Investors



Local Wealth Professionals was created to help Canadians become better investors

Many of you have had bad experiences with advisors. That is unfortunate… but not a universal truth!

Next, some of you claim that you could do as well or better on your own, or at least that is what you tell anyone who wants to listen.

But now here you are, on your own, reading this…

So, just between you and yourself, is it really true that you are better off managing your investments on your own?

Do you have the time, the skill and the resources you need to make a good job of it?

If you could discover a really good advisor relationship is that what you would really prefer?

10 reasons why you need an advisor to manage your investments well

  1. Like any other endeavor which is to be successful; successful investing requires a written plan and the patience, discipline and unwavering focus to work the plan.
  2. ALL good advisors will tell you that the most important job they do is to DETER their clients from making mistakes. Back in the day of advisors trading the portfolios for their clients, most advisors would have admitted privately, that their most important work was discouraging trades which were dangerous, or different from what fit the client’s objectives: i.e. what the client stated they wanted at the outset. Also, since everything was commission-based, the advisors were actually acting against their own interests to do what was right for their clients!
  3. Making a good investment plan requires the skill and knowledge that most investors do not have.
  4. A plan is of no value if it is not reviewed regularly and the contents of the portfolio compared to the plan in the context of the current situation. For example, should you “buy and hold” a stock? Or should you develop a strategy and faithfully stick to the strategy? This is NOT the same thing!
  5. A good advisor will hold regular reviews of the portfolio to confirm that the holdings remain relevant, in the context of the investment environment – ie “the markets” and “the economy”! What this is NOT is buying a collection of mutual funds and “leaving it to the managers”.
  6. Do not confuse a retirement plan with an investment plan. One may incorporate the other, but they may be separate too.
  7. A good advisor needs to know you – and your needs – very well so they can be your investment conscience.
  8. A good advisor will look at your portfolio critically and on a regular basis, proactively, to keep it relevant and current.
  9. A good advisor will be up-to-date on the markets and understand what is going on. They will have sufficient experience to recognize developing problems that might affect your investments. They will also have tools available to mitigate those risks.
  10. A good advisor will be more worried about growing your portfolio than about growing their own paycheck!

The 10 most important questions to ask if interviewing a new advisor or assessing one you work with now

  1. Is my Investment Advisor a good fit with my needs?
  2. Am I getting the services I want and require?
  3. Can my Advisor offer me all the Investment Products, Services and Styles that I may require to grow and protect my Wealth?
  4. Do I have a tool to find the other professionals I need, such as accountants, lawyers, etc, when I need them?
  5. How are those professionals rated?
  6. Are the fees I am paying justified?
  7. Do I understand what my fees are supposed to provide me?
  8. Am I paying the right amount or too much?
  9. If something goes wrong in the markets, or in my portfolio, will I understand why?
  10. Does my advisor have a strategy to manage down markets?

When you discussed these 10 points with your advisor, did you come away comfortable that they delivered solidly on all 10 of them?

Would you like to talk to a Local Wealth Professional for your area to see if there might be a better fit with your needs?

If so please click here to go to the Postal code locator

Please Note:

www.localwealthprofessionals.com is not a stock recommendation website. We hope you enjoy our course and the articles we post. They are intended to be for your education and entertainment and not to be construed as any form of investment advice. Any examples we offer are illustrations to clarify the information provided and should not be applied in real case situations without consulting with a competent investment professional. www.localwealthprofessionals.com cannot take responsibility for investment decisions made by an investor, regardless of the source of the ideas used to make their investment decisions.