Met with a prospect over the weekend and like a lot of people i run into he and his wife have accumulated a nice little pot of money. And like a lot of people they are not interested or i should say haven't been that interested in watching their money. Again, like a lot of people out there they have gone thru a bunch of so called financial advisors.
Well now there looking toward retirement and we sat down and looked at their investments. It turns out that they had a financial advisor from a bank run some kind of computer program and from what i could tell it came back as being fairly aggressive.The problem is they have 70% of their money in bond funds and thats where its been for some time. I suppose to that financial advisor that was aggressive. the problem is that a computer program makes assumptions of whats going to happen in the future as far as returns on investments. thos predictions are rarely correct.
Net net it looks like over a 7 year period they are basically even
If thats what you want in your financial advisor than stay the course and hopefully after 7 years you'll be even. But if you want to grow your money you need someone that actually manages your money which is not rocket science.
I use a basic risk averse method of managing money. I follow the trend. What does that mean? It means I compare the relative strength of stocks bonds and cash and whichever of those three is strongest is over weighted. When the trend changes I change. Something as simple as this lets you ride the trend for big gains and will get you out and avoid the big downs.
Thats the simple explanation of what I do but from being in this business for over 20 years just doing that would be doing more than the majority of financial advisors that i have met
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