Since 1986, when I started as a financial advisor, I have heard many people say they don’t really need an advisor, or they don’t think the money they might pay an advisor is worth the cost.
Well one of the reasons we believe that most people should use a financial advisor is investor performance. A good financial advisor will give guidance to people that might keep them from making those untimely mistakes that make it very hard to recover from.
Because human behavior is what it is, most people when left to their own devices, without someone to guide them, tend to make the wrong decisions at the wrong time. We have proof of that, but I’ll get to that in just a second.
Why do people make the wrong decisions at the wrong time? It’s pretty simple. They let their emotions rule their rational thought.
And there is science behind this. There is this ancient little part of your brain called the amygdala, that starts firing when you sense danger. Like how you feel when the stock market is crashing. The amygdala is saying run, it’s the saber tooth tiger all over again.
Without an advisor to tell you to stay calm, most investors head for the hills at the wrong time.
But you don’t have to take my word for it, just take a look at some of the studies. For instance, there is a study from the Morningstar company, the company that studies mutual funds, that shows that most mutual fund investors actually did far worse than the mutual funds in which they were actually invested.
Let me repeat that… most mutual fund investors actually did far worse than the mutual funds in which they were actually invested.
We have an article from Morningstar, that’s a couple of years old now, but proves the point of how investors really perform. Send us your e-mail address and we would be happy to forward it on to you.
We think with good guidance from an advisor, there is far more likelihood that you will stick with your investments and meet your financial goals.
This is just one reason why we believe most people should use a financial advisor.
Steve Wolff
WWM Financial
760-692-5190
www.WWMFinancial.com
#LiveYourLife
