What is the value of Financial Planning from your advisor?
This post is part of the SmarterInsight™ series and is written, as usual, by Tim Hale an investment expert who frequently informs our investment committee.
It is always tempting to judge the value of your adviser on the recent performance of your investment portfolio. That is unfair as it fails to understand the true value that a good adviser delivers (leaving aside the valuable financial planning advice that they also provide) and the fact that no manager can control the returns that the market delivers. Their true value lies not just in the robust structuring of a portfolio, but as a foil to avoid the truly dangerous combination of investor emotions and bad, yet often tempting, investment ideas. A good adviser can earn their ongoing fee several times over, simply by helping clients to have patience, fortitude and discipline in their investing.
INVESTING: SIMPLE, BUT NOT EASY
It is, without doubt, hard to be an investor. The dreams that we all hold – perhaps of a comfortable retirement, providing financial assistance to our family or community, or to pursue philanthropic works – are to a lesser, or greater, extent funded by the returns that an investment portfolio provides. No-one likes to see losses on their portfolio, but short-term losses are part and parcel of investing for anyone trying to protect or grow the long-term purchasing power of their assets. It’s always a case of two steps forwards and one step back. When investors truly understand that investment returns never come in a straight line, but are made up of the ups and downs of the returns that the markets – not advisers – deliver from one short-term period (e.g. the year between valuation reports) then investing becomes easier, but not easy.
Why you should contact Loch Fyne Financial – The best financial adviser in Glasgow
If you would like more financial planning advice & information please do not hesitate to contact a member of the Loch Fyne Financial team, the best financial planner in Glasgow, call us on: 0141 225 6272 or: lisa@lochfynefinancial.com to book an initial discussion.
