investment advisor

If your investment advisor is following a fiduciary standard, then they are legally bound to give you advice that is in your best interests and fits your specific needs. This includes sensible and strategic advice that you should take to heart no matter where you are in pursuing your retirement goals. Some of these include:

    1. Investing is long-term.
      Mitigating risks around a wealth accumulation strategy takes time. A well-diversified portfolio is a must, and so is the realistic expectation that you aren’t going to get rich at a young age. With the potential of big rewards come big risks, and that is an entirely different kind of investment strategy: speculation as opposed to risk mitigation. And even the high-risk strategy of speculative investing has limitations when it comes to liquidity.


    1. Past trends are still a good indicator of things to come.
      You don’t have to go too far in the financial world to hear the disclaimer: “Past performance is no guarantee of future results.” In reality, poor management decisions in a company’s past can still come back with negative consequences in the future. On the positive side, if a company has a strong record of being profitable and exhibiting positive growth, this is a good indicator that positive results are more likely with a winning manager at the helm.


    1. The buy and hold approach is the strategy to consider.
      Everyone wants to believe that they are competent at buying investments when the market is at its peak. The truth is far different: according to an analysis by Dalbar, the average investor earned 2.1% over the twenty year period ended Dec. 31, 2011 compared to an S&P 500 return of 7.8%, and a Barclays Capital US Aggregate Bond Index return of 6.5% over the same time period. With a buy and hold approach, your advisor makes adjustments over time to your investments that falls in line with your risk tolerance: an approach that I believe proves to be a more effective strategy.


If you have questions about investing or strategies for retirement savings, visit us at You’ll find articles and information on the three most important stages of your lives: wealth accumulation, near retirement and in retirement to help you plan for the confident financial future you’ve been working so hard for.

No strategy assures success or protects against loss. The S&P 500 is an unmanaged index which cannot be invested into directly.

Maye, Michael. Average Investor 20 Year Return Astoundingly Awful. The Street. 18 July 2012

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