Who Will Be Your Financial Coach?
"When the market takes a dip like it has over the six months between October 2007 and March 2008 a lot of people got the advice to sell out and place the funds in cash to reduce their losses. This could not be more wrong. It will not achieve your long-term goal of wealth creation. It will achieve a short-term goal of stopping the losses, but at a massive cost to the long-term plan."When you decide that it is time to start getting ahead, saving for your future or stop wasting money, the first thing you need is advice. However, more importantly… the right advice. As such the first step is the most critical. But most people move past this step with out much thought.
If you are going to achieve anything in your life, you will need help. Successful people in all fields, including sport, acting, business and science all use the support and guidance of a coach.
Who will be your financial coach?
1. Family member – not a good choice, you need an impartial third party.
2. Friend – see above.
3. Bank – they provide financial products not financial advice. Great if you want a loan but that is it.
4. Accountant – mainly focused on tax, which is only part of the picture.
5. Lawyer – mainly focused on legal issues again only part of the picture.
6. Financial Planner – good choice, they have a good general knowledge of the market and products you can invest in. They are across both legal and accounting issues as well as general economic issues.
7. Private Wealth Creator (Stockbroker) – there have the same skill as Financial Planner but also have a acute knowledge of economics and a much more detailed understanding of the market and individual share in it.
The obvious choice is a Financial Planner or a Private Wealth Creator. Which one you choose will depend on your level of commitment and involvement. So now you know who you are looking for, it is time to find one that suits you. As this is the most important step… take your time in deciding.
Once you have chosen someone, make sure that you listen to them and them alone. Why? Because you’ll receive much advice from many sources, including your family, friends, lawyers and accountants. Most will be good intentioned, but without knowing your end goal and strategy, this advice will mostly be off target. Remember, well meaning advice at the wrong time can cost you dearly. So, do not become distracted because of this advice. Only act on the advice from your chosen coach.
When the market takes a dip like it has over the six months between October 2007 and March 2008 a lot of people got the advice to sell out and place the funds in cash to reduce their losses. This could not be more wrong. It will not achieve your long-term goal of wealth creation. It will achieve a short-term goal of stopping the losses, but at a massive cost to the long-term plan.
Remember a good coach is worth more in bad times then in good, this is when you should listen to them and follow their advice.
Who do you listen to? Who should you listen to?
Give us a call on 07 4771 4577 and we will review your position now.