Investing has become more complex, making it critical for you to receive sound, professional financial advice.
Regardless of your current financial goals or what level of investor you are, working with a financial advisor can offer important benefits, such as guidance, discipline, focus and peace of mind. Investing is increasingly complex and fast changing and sound financial planning takes more time and energy than most people can afford to give it. For many investors, a do-it-yourself approach can result in unsatisfactory decisions.
But there's more to financial planning than you might have thought. For most advisors, financial planning is about helping clients achieve a fuller sense of economic well-being. This includes financial success and realization of goals. It also includes helping investors integrate multiple aspects of their lives with their investment strategies. Invariably, that means not only helping them answer the question, how much should I invest and where? but also how will my investments reflect my goals and concerns?
Increasingly, many financial advisors are going beyond the traditional role of helping investors achieve merely their financial objectives. They view their relationship with their clients as a partnership aimed at exploring the client's concerns and identifying investment options that reflect the issues their clients care most deeply about. These advisors understand the importance of asking hard questions - not simply about a client's retirement plan. They also ask about their hopes, dreams and aspirations. Certainly, it's important to ask, "When do you want to retire?" or "How much money will you need?" But it's equally important to ask, "What is the significance of money to you?" "Do you have concerns about investing in tobacco companies or companies that have had labor issues?" "What kind of future would you like for your children?" and "What kind of world do you want to retire in?"
Rather than impose solutions, a good planner will turn the answers to these questions into an investment portfolio, gently leading you to insights that can help you achieve the dual goal of financial success consistent with your personal interests and beliefs. In particular, he or she will help you choose funds that align with your preferences and interests - such as a desire to avoid investing in certain types of companies. Don't hesitate to tell your financial advisor about issues and concerns regarding industries or companies you have; it is the backbone to building a strong and trusting relationship with your advisor.
Creating a financial plan is a dynamic process that constantly needs to be updated. By creating a long-term working partnership with a trusted advisor, you'll be prepared to re-examine and adjust your investment strategy in light of shifting market conditions - and changes in your own life as well. At any given point, a number of factors, including your age and experiences, have a direct impact on your financial goals and investment strategy. A periodic portfolio "checkup" provides an opportunity for you and your advisor to evaluate where you are and reassess your goals and strategy. You may find yourself with estate or charitable planning needs, for example, or special tax considerations in light of new tax changes.
So, what can a financial advisor help you achieve? The integration of your investments with your quality of life interests, all in a context that provides guidance, focus, discipline and peace of mind. And you can start the process simply by talking to your advisor. He or she will be happy to hear your thoughts and concerns about different investments and where you stand on certain issues. Whatever your goals, you'll find a Calvert fund to help you meet them in a way that makes you feel good about the future you're helping to build.
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