What You Should Thank Your Adviser For
A classic Thanksgiving tradition is when each person around the dinner table names one thing they are thankful for this year. Known as “giving thanks,” it’s an act of reflection to help appreciate the good and move on from the bad.
Giving thanks can also be a useful tool to carefully weigh the pros and cons of your investment adviser. Contemplating what you’ve thanked your adviser for this year is a good way to determine if he or she is meeting your needs.
Try it. If you need help, here is a list of things you should have thanked your adviser for this year (and every year):
You paid low investment fees and kept more of what you earned. Rather, you paid a fee for his/her services of providing an appropriate strategy for your goals, managing your investment assets, and keeping you disciplined and on track. .
You knew exactly what was in your portfolio, what your total costs were, what your asset allocation was, how your portfolio generated a return, who managed your money and when any changes occurred. In a nut shell, no surprises.
You know you’re not deviating from your financial goals, as your performance was detailed in consistent communications throughout year. Your adviser delivered a consistent message and investment strategy.
The right allocation
Your adviser knows just what it will take to reach your financial goals and has set up the investments with the right amount of risk to generate an expected return needed.
Your adviser didn’t try to sell you a bunch of investment products. Therefore, one thing you haven’t taken for granted is the confidence of knowing your adviser won’t lead you astray, as he or she is legally obligated to put your interests first. You may be even more thankful when you are retired and living comfortably off of your investments.
A truly diversified portfolio
Your portfolio is diversified across several asset classes represented by funds holding thousands of securities. You’re also diversified across fund providers because your adviser can shop around to find you the best fund for each asset class at the lowest cost.
A steady cash flow
Maybe the money you used for your holiday feast is from your portfolio. Fortunately, your adviser turned your portfolio into a reliable income source that is likely to last for several years.
Robo-advisers have their place, but you had more complex needs that couldn’t rely on a computer engineer’s algorithms. Nor did you deserve a carousel of advisers at a call center. Thankfully, a single human voice was only a phone call away.
You were able to spend more time pursuing new goals instead of watching market numbers, checking your balance and trading in your portfolio. Or, worrying about it at all.
Another year gone by, your asset allocation has been maintained and your portfolio rebalanced, as needed. In other words, you’ve stayed the course toward your financial goals. Maybe you’ve made a call or two, but your adviser has kept your emotions in check.
Not only did your adviser take the time to explain specific investment concepts, but did so in clear, layman terms. Your investment acumen has improved and you’re a better investor because of it. It was the gift of a free finance education.
If you haven’t given thanks for any of these things, then it may be time to move and find the right investment adviser. However, be thankful that you’ve realized it before it’s too late.
What do you think investors should be thankful for in an investment adviser? Let us know. Tweet this blog with #AdviserThanks.