A financial advisor is a living and breathing financial insurance policy. What does that mean?
Well, let’s consider what an insurance policy is. Insurance is there to help cushion the blow in case something bad happens. It provides peace of mind when things are going well and protection when they’re not.
McLean’s advisors provide peace of mind in knowing you’re investing well and protection against poor decisions in two ways: by providing discipline to your financial life, and by making sure nothing slips through the cracks.
Three Ways Your Financial Advisor Keeps You Disciplined
Your financial advisor provides discipline to your financial life in three ways:
- Making sure you stick with your financial plan – When the market is dropping and everyone is nervous about how low it might go, your discipline should prevent you from selling. When the market is going up, and everyone is getting excited, your discipline should keep you from buying. A financial advisor is an added layer of protection against buying high and selling low.
- Keeping you on course – Even though your investments don’t necessarily go up every year, a positive pattern will likely emerge over time and across different markets provided you stick with your asset allocation. Your advisor will help you stay on course.
- Protecting you from emotional decisions – Your decisions should be motivated by reason and logic, not emotions like fear and greed. Regardless, it’s easy to give in to fear when the market is down, just like it’s easy to get a little greedy when the market is up. Your advisor is there to keep your emotions in check.
Is Anything in Your Financial Situation Slipping through the Cracks?
Maintaining an efficient financial plan is a big job. It’s easy to miss the myriad of ways to optimize and tweak your portfolio when you’re focused on the bigger picture. That’s where your McLean team steps in. By continuously reviewing your financial plan, as well as your total financial situation, we can make small readjustments to keep you on track and make sure nothings falls through the cracks.
Your financial objectives will change as you age, so you will want to make small adjustments as you go. Your objectives will not be the same when you’re 70 as they were when you were 35. You change through time, so your plan should change, too.
Minor changes are better than what could happen if you wait a couple of years: You run the risk of finding out you have to make some drastic changes.
By re-running your plan every day, your advisor can keep it up-to-date. Remember — no news is good news. That means you’re on track to meet your goals. When issues do come up — issues will inevitably come up — your advisor will alert you and you can address them together immediately.
The Assurance of Insurance
By providing discipline to your financial life and making sure nothing slips through the cracks, your financial advisor is a living, breathing insurance policy against financial mishaps. The peace of mind alone is worth it for some investors, while others appreciate the financial failsafe.
On a macro level, advisors protect and promote your financial health. But what does that look like up close? When you get to the nitty-gritty of it, your financial advisor is strategizing on your behalf on a day-to-day basis.
McLean Asset Management Corporation (MAMC) is a SEC registered investment adviser. The content of this publication reflects the views of McLean Asset Management Corporation (MAMC) and sources deemed by MAMC to be reliable. There are many different interpretations of investment statistics and many different ideas about how to best use them. Past performance is not indicative of future performance. The information provided is for educational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy or sell securities. There are no warranties, expressed or implied, as to accuracy, completeness, or results obtained from any information on this presentation. Indexes are not available for direct investment. All investments involve risk.
The information throughout this presentation, whether stock quotes, charts, articles, or any other statements regarding market or other financial information, is obtained from sources which we, and our suppliers believe to be reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Neither our information providers nor we shall be liable for any errors or inaccuracies, regardless of cause, or the lack of timeliness of, or for any delay or interruption in the transmission there of to the user. MAMC only transacts business in states where it is properly registered, or excluded or exempted from registration requirements. It does not provide tax, legal, or accounting advice. The information contained in this presentation does not take into account your particular investment objectives, financial situation, or needs, and you should, in considering this material, discuss your individual circumstances with professionals in those areas before making any decisions.