The Importance of Maintaining Financial Equilibrium
Health and Fitness have become a concern for the young and old. Eating healthy and completing a fitness regime seems easy enough but actually maintaining either is more difficult than one might think. I have found that there is strength in numbers! A fitness coach and a fitness group increased my level of success greatly, mostly because I was accountable to these people for my actions or inaction. I think the same holds true for Investors and advisors!
I believe investors who work with an advisor have a better chance of reaching their financial goals than those who choose to do it on their own. I believe this because advisors help the investor to stick to their financial plan. I have said this many times and I will say it many more times – human nature and emotions will play a part in investor decisions when left to their own devices.
Investors can be their own worst enemies. Human instincts, including a natural aversion to loss and following the crowd characteristics cause many individuals to make poor choices when it comes to investing. Poor choices like panicking in a volatile market causing them to buying high and selling low or taking their entire holdings to cash in an effort to time the market.
Inevitably, investors will be confronted by a friend, a colleague or find an internet article that claims to be making a killing in the market. Of course this prompts the investor to want to join in on whatever the strategy is. As an advisor, I have had to talk many clients out of “jumping on that bandwagon”. A financial plan is designed with the investors financial goals, risk tolerance and growth in mind so taking an unnecessary risk that may or may not be successful could lead to a setback or derailing the plan altogether.
The number one reason people quit on their goals, be it financial or fitness is there are no real consequences for their inaction. It is okay to admit you might not succeed on your own and it is also okay to admit that someone else might help you get where you want to go faster.
This article is supplied by Elizabeth O’Connor, an Investment Advisor with RBC Dominion Securities Inc. (Member–Canadian Investor Protection Fund). This article is for information purposes only. Please consult with a professional advisor before taking any action based on information in this article.
Elizabeth O’Connor can be reached at 705-789-2100 or [email protected]
Whether you are looking for a full time, full service financial advisor or seeking expert financial advice as a second opinion, call Elizabeth. With offices in Haliburton, Huntsville and Bracebridge, Elizabeth works closely with clients in cottage country from the lakes and surrounding towns.
Elizabeth O’Connor is an Investment Advisor with RBC Dominion Securities, which is a member of the Canadian Investor Protection Fund. 705-789-2100