It has been said that markets are driven by fear and greed. Our observations suggest it may be more accurately described as fear and fear. Fear of losing money in a bad market, and fear of not making as much as the next person in a good market. Another axiom, “scared money never wins” is never more true than in dealing with investments. We feel that helping our client manage the mental aspect of investing shares equal importance with managing the actual financial instruments.
Everyone, clients and financial professionals alike, are affected by emotions when it comes to money. Accepting that emotion is involved allows us to adhere to a process to help minimize its deleterious effects.
A broad brush-stroke of the process begins with a thorough interview with our client to illuminate long-term goals and objectives. It continues with a detailed picture of our clients current financial situation: debts, assets, retirements savings, pensions, social security, future income needs. The information shared will build a foundation upon which we construct the framework to answer the question of what constitutes an acceptable level of risk. Finding the right answer to that question is the single most important predictor of a client's success.
Though every attempt is made to determine a client’s objectives and risk tolerance before the first investment is made, human nature dictates that an investors objectives and expectations will often change in step with current market (or media) sentiment. There are times when conservative investors may feel left behind in a strong market. Certainly there have been occasions when even the most aggressive growth investor have felt the need to reduce market exposure to a level that allowed a better nights sleep.
We encourage clients to let us know what's on your mind! We feel that ongoing communication is the key to our client's satisfaction. Call us, e-mail, set an appointment on short notice. Our doors are open and we are
here for you.
Everyone, clients and financial professionals alike, are affected by emotions when it comes