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Your investing advisor will play an important role in your financial future. From helping you design and implement your retirement plan to regular check-ups to using your savings in retirement, you need to know your advisor will be with you every step of the way.
With such a long time horizon, even the best of relationships can go wonky. But it would be a mistake to dump your advisor just because you may not see eye to eye one day. If you encounter any of these three signs, however, it’s possible that you and your advisor are experiencing more than a routine rough patch.
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Mutual fund investing is often a roller coaster ride, so remember, your advisor is not to blame every time your investments take a dip. The goal of retirement investing is strong long-term returns. Your investment performance should resemble the S&P 500, which swings up and down but, in the big picture, consistently trends upward. Even more important than your return is your advisor’s reaction when you bring up concerns about low-performing funds. If your advisor answers your questions and makes sure you are confident with your funds, you are both doing your jobs. But if the reaction is not as positive, the issue may not be poor performance but a listening problem.
Feeling the Pressure
Dave recommends mutual fund investing for retirement for a reason: It’s the best way to use the power of the stock market without sacrificing too much growth potential or taking on too much risk. Not everyone agrees with this approach, so some advisors recommend other investments like annuities, single stocks, bonds or cash-value insurance. It’s important that you and your advisor agree on the best way to build your retirement fund, so if you feel pressured to get into investments you don’t want or don’t understand, you could be dealing with the wrong advisor, not the wrong investment.
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A huge part of your advisor’s job is to listen to you. He or she should give you plenty of information to make informed choices about your investments, but ultimately those decisions are up to you. When there are problems, your and your advisor can use the opportunity to take a closer look at your investments and, if necessary, discuss changes that will leave you more confident about reaching your goals. On the other hand, if your advisor takes the criticism personally or has no time to address your concerns, it is time to find a new advisor.
Need Help Finding a Trustworthy Advisor?
Through Dave’s Endorsed Local Provider (ELP) program, you can find an experienced, trustworthy investing advisor who agrees with Dave’s investing philosophy. Your ELP will have the heart of a teacher and be an advisor you can count on for the long term. Find your ELP today!