In an uncertain market, you may be tempted to do one of two things: hide under the covers and do nothing, or make radical moves like investing in a “hot stock” you heard about through a much-forwarded email.
Intellectually, you know that either course can have disastrous results on your portfolio. Sometimes it’s hard to rein in those emotions, however that unrelenting itch to do something is understandable. A financial advisor can offer some productive actions you can take to scratch that itch.
Schedule a check-up: Call your financial advisor for an appointment to review not only your investments but your big picture, including any changes in your job, family or long-term plans. A small change, like a pebble in a pond, can have broader impact. Covering all the bases helps ensure you don’t miss a potential problem – or opportunity.
Find out what's happening in Madisonfor free with the latest updates from Patch.
Educate yourself: Knowledge is power – if it’s the right kind of knowledge. Call your financial advisor for some recommendations on books, magazines and web sites that present solid information on investing. Increasing your understanding of investment concepts can help your advisor better communicate with you about your goals and help you better understand the basis for their recommendations.
Ignore the hype: It’s easy to get caught up in the seemingly endless universe of self-proclaimed experts touting the next great thing. That’s exactly the kind of follow-the-leader mindset that created the dot.com bubble. Someone somewhere does have a good idea. Determining who that might be among thousands of contenders would be nearly impossible. And even if you found that idea, it might not apply to your situation. Call your financial advisor when you need a sounding board.
Find out what's happening in Madisonfor free with the latest updates from Patch.
Help someone else: Does your parent or child need assistance with their finances? Have you been avoiding family financial conversations? Market uncertainty provides a great way to start that conversation. Call your financial advisor if you need a neutral third party to assist you in talking finances with your adult family members.
It’s tempting to get caught up in the hype, so next time you get that urge to do something, call your financial advisor. They will help you evaluate the ideas you’re considering and offer a professional perspective for keeping you on track with your financial goals.
FINANCIAL FACTS
Spending Our Money – Health care costs in America are equal to 17.6 percent of the U.S. economy, a larger percentage than any other country in the world. The proportion of our economy that goes to health care is 47 percent greater than the country (the Netherlands spends 12 percent of its economy) that holds second place in this ranking (source: Organization for Economic Cooperation and Development, BTN Research).
I’m Bigger Than You – Outstanding student loans were $986 billion as of March 31, 2013. Outstanding credit card debt was $846 billion as of March 31, 2013 (source: Federal Reserve, BTN Research).
Two Out Of Three – Sixty-four percent of all individual tax returns filed in 2010 (91.5 million out of 142.9 million returns) reported less than $50,000 of adjusted gross income (source: Internal Revenue Service, BTN Research).
