How to use this tool
How to use this tool
Financial Experts: Where Do I Start?
by Henry V. Kaelber (Write for us!)
(Click on the links within the article to get definition of that word)
(Click on the links within the article to get definition of that word)
If you were seeking dental care, it isn't very likely that you would call on a cardiologist, or an ophthalmologist, or a pharmacist. Why not? Aren't they
all health care professionals? No, it is quite commonly understood that you would call on the services of a dentist to meet your desire for dental care. In fact if you went to one of these other health care specialists - after overcoming the surprise of your inquiry - they would more than likely direct you to seek out a dentist. However, when seeking the services of a financial expert, there is much greater confusion in determining who to go to. And what makes matters worse, most incompatible financial experts would offer their services anyway!
Over the past many months I have observed much confusion amongst prospective new clients, friends and, yes, even our existing clients when discussing the roles played by the multitude of financial experts assisting the public today. What I want to do with this month's newsletter is give you an "aha!" moment: that insight, which helps you, understand a part of the mysteries of the investing marketplace.
Each and every day thousands of financial experts go to work to give you their expert opinions on how to best invest your money. There are tons of services out there, from full service brokers with excellent executions, to data services with the most up to date research information. The end result is simply information overload.
Emulating Warren Buffet, Peter Lynch or any other investment guru by reading their strategies is a hopeless task, simply because the real reason for their success, money management, is rarely discussed. Yes, we all know that Buffet is a value player, but so are millions of other value investors, so why are they not as successful?
The truth of the matter is that very few financial experts truly understand the science of money management. Walk into any broker or investment advisor and have a meeting. You will find that the whole process is simply geared toward putting you at ease, or, as one broker once told me, "We are not in the money business; we are in the relationship business."
Nine times out of ten, you will end up leaving your money with the person that makes you feel the most secure, and not the one who is truly the most qualified. The same mistake is often repeated by most investors who often buy supposedly safe stocks recommended by analysts, as opposed to buying stocks that truly have the most potential.
Over the past many months I have observed much confusion amongst prospective new clients, friends and, yes, even our existing clients when discussing the roles played by the multitude of financial experts assisting the public today. What I want to do with this month's newsletter is give you an "aha!" moment: that insight, which helps you, understand a part of the mysteries of the investing marketplace.
Each and every day thousands of financial experts go to work to give you their expert opinions on how to best invest your money. There are tons of services out there, from full service brokers with excellent executions, to data services with the most up to date research information. The end result is simply information overload.
Emulating Warren Buffet, Peter Lynch or any other investment guru by reading their strategies is a hopeless task, simply because the real reason for their success, money management, is rarely discussed. Yes, we all know that Buffet is a value player, but so are millions of other value investors, so why are they not as successful?
The truth of the matter is that very few financial experts truly understand the science of money management. Walk into any broker or investment advisor and have a meeting. You will find that the whole process is simply geared toward putting you at ease, or, as one broker once told me, "We are not in the money business; we are in the relationship business."
Nine times out of ten, you will end up leaving your money with the person that makes you feel the most secure, and not the one who is truly the most qualified. The same mistake is often repeated by most investors who often buy supposedly safe stocks recommended by analysts, as opposed to buying stocks that truly have the most potential.
Email this Article
Print this Article
Cite this Article
Other Suggested Articles
Choose A Financial Advisor Who Puts Your Interests First >
Measuring the Cost of a Financial Advisory Relationship >
Should You Use More Than One Financial Advisor? >
Common Mistakes That People Make While Picking a Financial Advisor >
Investment Advisor or Financial Consultant? >
Whom Should You Turn to for Independent Investment Advice? >
10 Things Financial Advisors Don't Want You to Know >
Ruminations on Selecting an Advisor >
Is Your Investment Advice "Best" For You >
Independent Collaborative Advice >
Other Articles By This Author
Pension Reform: So, What's Washington, D.C. Doing About All This? >
The Effects of Risk (Volatility) on Returns >
Increase Your Wealth: Why Is Budgeting Important? Why Do I Need One? >
Should You Be Investing in Chinese Companies? >
Changing Your Spending Habits >
Pension Reform: Defined Benefit Plans - What's Wrong? What Needs Fixing? >
Should You Be Investing in China's Economic Growth? >
What an Aspiring Day Trader Should Consider >
Why Does Estate Planning Matter? >
Wealth Replacement with Life Insurance >
Article reprinted with permission. Unauthorized reproduction of this content is prohibited.
Click here to license InvestorGuide University content.
Click here to license InvestorGuide University content.
