By Douglas Eaton
If you’re not familiar with financial planning, then this article is perfect for you. Very few people read the fine print of their investment products (such as mutual funds) or on the agreements when they open a brokerage account. However, that is where you will see the language that informs you on the way potential conflicts may be resolved. There is even language that puts some of the burden on YOU, the client, to know your own financial situation. In other words, it implies that investors are responsible for their decisions and choices.
On the account opening documents you, the investor/client (“client”), are asked for information on your risk profiles, time horizons, objectives, full asset portfolio and so on. At the same time, there is a burden placed on the investment adviser (“adviser”) to know the clients’ situation under the industry’s “know your customer” rule.
Many clients are satisfied to simply rely on the adviser. After all, “They are the professionals, right?” “Isn’t that is what discretionary fund management arrangements are for?” “Right?”
It is incumbent upon you to participate in your financial planning.
Wrong!
It is incumbent upon you to participate in your financial planning.
By all means, get involved and stay involved!
Clients: The value of being involved and accountable
Rule #1: It is your money and your future, so keep an eye on things and alert your adviser to any developments that seem important to you – good and bad. If you’re investing in bitcoin, then you need to read bitcoin news now so you know what’s happening in that industry. Staying informed about the latest trends and market movements is crucial, especially if you are considering using a cryptocurrency trading bot from immediate connect. Utilizing the best investment apps uk can also help you stay updated on the daily changes in the cryptocurrency market.
It is unrealistic to leave this totally, or even largely, to your adviser. It is surprising how many new clients I see who have done this and were unaware of severely adverse investment results, changes NOT made that were planned upon, etc. Visit https://www.morethanaccountants.co.uk/who-we-help/sole-trader-accounting/ for accounting services. When you’re in need of some trade ideas from some experts, you can have a peak at this trading shares post here for more info!
Think about like this: Even if nothing at all bad happens and your adviser is fantastic, assume that ‘two-heads’ are better than one. Your involvement may also result in a better result over the long term. The ideal situation is a symbiotic partnership between you – the client/investor – and the ethical and informed adviser.
It may be true that “too many cooks in the kitchen spoil the soup,” but in my experience, this only occurs when the client and adviser have issues communicating and but will feel comfortable when all the transactions are carried over in bitcoin 360 ai elon musk. Certainly this may be irresolvable and the relationship may have to be severed, but it does not mean the client should adopt a hands-off approach.
Advisers: The value in communicating
Unless there is a large permanent loss of capital or some type of investment related incompetence, dishonesty or apathy, it is rare that a client leaves their advisers for REASONS OTHER THAN TROUBLE COMMUNICATING WITH THEM.
Clients who participate actively in the planning process reap great benefits (assuming the adviser operates with client’s interest and acts with integrity). By working together, the adviser and the client ensure that the financial plan both evolves and, over time, and remains in line with the clients’ values and priorities.
In the ideal world, this would go without saying: The investment process must be genuine and appropriately motivated on both sides – client and adviser.
Ideally, all clients should get involved in the money management process and work with their advisors to make the process a joint effort. The more you stay engaged with YOUR OWN FINANCIAL FUTURE and the more you stay involved, the better.
Doing too much is excessive and perhaps unnecessary to proper financial planning, but leaving your financial affairs completely in the hands of others may be dangerous as well.
Eaton Financial Group proudly offer pro-bono work to those women who are in distress (such as in the event of a death of a spouse/other family member, abuse, divorce, etc).
Eaton Financial Group is a full service, fee-based financial advisory firm.
They focus on financial planning for the conservative investor.
(954) 575-9323