Broker Check

Understanding the Basics

January 30, 2023

Whenever you are starting to build your financial plan with your Advisor, it is a good idea to brush up on some basics. This will help create a productive dialogue with your Advisor, and encourage you both to create a plan that is best for you.


All investing involves risk.

Recognizing that all investing involves some risk should be taken into consideration while planning for retirement, big purchases, etc. Past performance of your portfolio is never a guarantee of future earnings, but it could give you and your advisor a general sense of how your portfolio is going to do in the current state of the market, and situations to come.


Investing should be a long-term goal.

The goal of investing should be to benefit your long-term goals. Generally speaking, your advisor’s goal should be to ensure security in every stage of life. No matter what asset allocation your advisor suggests, make sure you are open with your advisor about your income needs, expenses, and other long-term goals you may have.


The bottom line.

When you meet with your advisor, be prepared to level with them as to what you want out of life. What may sound impossible to you now, may be obtainable with the correct planning involved. Educating yourself can help you have a productive conversation with your advisor, and in turn assist in creating a plan that both you and your advisor agree is best for your financial goals.