The term “silver lining” is used to emphasize the hope that may be found in an otherwise totally negative situation – “every black cloud has a silver lining”. Since the beginning of 2020, we have been dealing with an enormous black cloud in the financial world – the Bear Market. Daily routines are subject to constant change, unemployment is still high, regulations and restrictions are coming and going constantly and any sense of security seems shaky at best. But in spite of this rollercoaster change, might there be a silver lining in this situation?
The answer to that question depends a lot upon where you’re looking. If you are looking at today’s trials in the light of making the necessary changes not only to cope but to improve your life right now, then maybe this is the nudge you needed to get your financial house in order. This might be the time to set yourself on a firmer financial footing so that the next catastrophic event doesn’t upend you again. Whether getting yourself back on the right track or keeping yourself on the right track, securing or working more closely with a fiduciary could be your silver lining.
Expert financial advice may not be something everyone needs. There are those who truly enjoy investing, following the markets and doing all the financial analysis for good decisions. Vanguard, one of the world’s largest investment companies has been studying the worth of a Financial Advisor for many years and has concluded that about one-quarter of private investors are capable of doing their own planning and investing. They are incredibly disciplined individuals who are market-savvy and able to guard their emotions from interfering with their investment strategy.
However, that leaves most searching for the advice of an experienced and trusted fiduciary to handle their investments. Of course, similar results should be the goal of do-it-yourselfers and those seeking advice and paying for the expertise. Fortunately, research has shown there are quantifiable benefits from working with a financial advisor to offset the fees. Studies by Vanguard and Russell Investments have estimated that the services of a good fiduciary can add 3 – 3.75 percent to investor returns. An experienced and dedicated financial advisor can help keep realistic reassurance during good and bad times. He or she will be able to show the whole financial picture and how to best align it with your personal goals and objectives.
Now may be the time to consult with a fee-only Certified Financial Planner™ professional, whether setting an appointment with your current advisor, getting a second opinion or finding your first advisor. If you are not working with a trusted advisor or are searching for one, we encourage you to interview several candidates and do your homework. Seek referrals of other professionals, like CPA’s and attorneys, or go online and search the internet for a
fee-only Certified Financial Planner™ professional to be certain they are independent fiduciaries. Ask for and make certain you understand their credentials and how they are compensated for their advice.
Have a great weekend!