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With the variety of investment options available today, we suggest
that you seek guidance from a financial advisor. Nearly every
investment entails special risks that should be discussed with
an experienced professional. Your investment goals are unique,
and an advisor can help you find the right fund to match your
needs.
When taking a full-service approach to investing, you put
a professional's training, knowledge, expertise and resources
to work for you. Consider these benefits: - Potential access to important investment news when
it is most valuable
- Professional advice that may help improve your investment
results
- Expert help in determining the best way to allocate
your assets
- A trained and objective professional who can help
you avoid panic selling
You may be thinking that the Internet and financial planning
software can cater to all these needs, but although they are
convenient tools, they cannot equal the personal attention
and experience of a professional. He or she can make that
difference in helping you manage your financial future.
What to expect from a financial advisor
The key for mutual fund investors is to define and recognise
the value of professional financial services, and then insist
on getting that value. When you pay a sales charge or a fee,
what can you expect a professional to do for you? Your advisor
should at least: - Understand your needs and help you formulate long-term
investment goals and objectives.
Before making specific recommendations, your advisor should
try to gain a whole picture of your past experience, lifestyle
and goals, as well as your other investments and current financial
situation. When are you planning to retire, for example? Do
you have life insurance? Do you own real estate? How secure
is your job?
- Help you develop realistic expectations by discussing
the risks and rewards of each investment.
Every investment choice has its strengths and weaknesses,
and you should never feel less than fully informed. When you
ask questions, or have doubts, you should expect your financial
advisor to answer honestly, and help you develop a strategy
that is both realistic and comfortable for you.
- Match your goals and objectives with appropriate
mutual funds.
You should expect your advisor to make clear and specific
recommendations, and explain the reasons behind them in terms
you can understand. Of course, the advisor should be confident
and well informed about the management and portfolio strategies
of any mutual funds recommended.
- Continually monitor your portfolio and help you interpret
performance.
Your advisor cannot influence or predict a fund's results.
However, he or she should discuss results with you and help
you judge your progress. You should feel that you can always
ask your advisor, "How am I doing?"
- Conduct regular reviews to ensure that your strategy
continues to provide optimal results for you.
One of the most valuable services your advisor can provide
is to help you "stay on course" with your investment
program. But "staying on course" long term does
not necessarily mean staying put. Expect your financial advisor
to work with you to adjust your portfolio in response to any
significant change in your lifestyle, priorities, assets or
responsibilities.
These are the basic services that investors should expect
from their financial advisors. Beyond the basics, many investors
could use even more specialised assistance, like advice on
retirement plan distribution options, setting up and servicing
retirement plans for small businesses and self-employed individuals,
developing tax-advantaged strategies for children's college
education, insurance, estate, and trust planning; and year-end
mutual fund tax advice. If you need specialised services,
there are many financial advisors who can help you obtain
the help you need.
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