All too often we allow emotions to influence our choices when we make financial decisions. Fear and greed are the chief emotions driving irrational money decisions. Financial media and personalities further cloud rational judgement as they drive their popularity with these same emotions. Some financial professionals use these same emotional drivers to lure clients: Promises of big returns or safety guarantees are seductive.
A lack of clarity about our finances can lead to us to mismanage it or let others do it on our behalf. Money is merely a tool to accomplish our life goals; retirements, weddings, education, travel, etc. These are the aspirations we work and save for. The point of saving, investing, and money management is to accomplish these goals with the least amount of risk possible. This is why working with a financial professional is so important. It allows you to develop a plan that is built specifically around your individual goals.
Consider this anecdotal story: An investor states their number one financial priority is funding their child’s education. While heart warming and noble, it may leave said child with the responsibility of paying for their parent’s retirement (which is likely to cost far more). While there is nothing wrong with financing offspring’s education, it should be prioritized correctly, not necessarily according to emotion.
Countless advertising promises all manner of financial gimmicks: “free” financial tools and advice. The majority of these “giveaways” are coming from biased financial institutions hoping to win your business. Don’t allow fear, greed, or other emotions to sway your financial behavior. Look for a financial professional that helps you develop a comprehensive plan. In the long run, this will save you money and heartache. InvestorKeep helps by ensuring your accounts are monitored and analyzed by a third party for changes that can impact your returns.
To learn more about what to look for in a financial professional click here.