As a, I can tell which are probably best for my clients before we even talk about .
How is that possible? It's pretty straight-forward, actually.
I don't investment strategy.to suggest that I know which strategy to take before they even come into my office. Rather, as we talk about their lives, I get a sense for their personality. And personality is an indicator of your
Everything that we do in life is an extension of our personality, from our vacation investments. Conservative people are conservative investors -- they like knowing what to expect and they don't like surprises.to our career. For example, when people are very conservative by nature, they probably don't want to take a of risk (if any) when it comes to their
I have a client who is neverto change. He doesn't like to take risks on anything -- especially his investments. He likes the security of knowing that everything is the same, and he never wants to hear about new products. I don't need to meet with him more than once a year because we don't need to make changes to or revise his investment portfolio -- he just needs to be reassured that his money is still there.
Meanwhile, if a person is very organized and in control of everything in her life, her investment portfolio is likely the same way. I have a client who is borderline obsessive compulsive about everything being scheduled. She comes to see me every third Wednesday of the month at 1 p.m. on the dot.
I know that she likes to be in control; she has to have calm in her life. So I let her take control of the conversation. I make investment suggestions, but ultimately she makes the decision. The truth is that the meeting is just a formality; she already knows what she wants before she comes into my office.
Then there's the client who always talks to me about her home -- it's her pride and joy. Every time she comes to see me she has a new recipe or decorating tip for my apartment. She also likes to share statistics on germs in homes and offices. My client keeps her home immaculate and she wants her investment portfolio the same way.
This client requires financial planning by the book. She doesn't want to have several different investments because it creates a multi-page statement and (in her mind) financial messiness. Her investment portfolio is well diversified among cash, fixed investments and domestic . However, she does not have several types of investments in each asset class; there is just one -- maybe two mutual per category -- and that's the way she likes it. Clean and simple.
The financial advisor at least once a year to make sure that your investment options are in line with your current goals.Answer: Personality is an indicator, but your needs more from you. Visit your
Also, prepare questions about your investment options to make sure that when you walk out of the office, you are comfortable and confident with your investment choices. It's also a good idea to have all of your statements in hand so that you can compare and discuss the performance of your investment portfolio with your financial advisor.
- Create a retirement savings goal
- Design an investment plan to reach it.
- Get a professional money manager to continually monitor and rebalance your portfolio
Sound complicated? Don't stress. Vanguard's new robo advisor service can help you put all of this (and more!) on autopilot, all for an annual gross advisory fee of just 0.20%.