October 2021
Magdeleen Cornelissen
PSG Wealth
Giving up control is a daunting concept when it comes to investments. That is why it is so important to find a Financial Adviser that understands your fears and goals; someone that you can relate to and share your doubts with without feelings of guilt or disappointment.
“ The time has arrived. I need to confess that I am addicted to watching television. ”
My not-so-ideal TV habits remind me a lot of the investment behaviour of some of the clients that I’ve had the pleasure of advising. Being an accomplished channel hopper for nearly 42 years has taught me that the best way to waste time is to hold the TV remote in your hand, which will ensure that you do not commit to one show. This causes you to lose focus and hop onto the next exciting story, which might bring a laugh or a tear, depending on the mood of the day.
Unfortunately, many investors can relate to this when it comes to their investment style. One of the toughest things to do is to commit to an investment plan despite market volatility. Studies have shown that most investors need the guidance of a Financial Adviser with the correct expertise to guide them, not only through the turmoil times but also the easy times when the promise of even higher returns can lure investors away from an already successful plan.
Giving up control is a daunting concept when it comes to investments. That is why it is so important to find a Financial Adviser that understands your fears and goals; someone that you can relate to and share your doubts with without feelings of guilt or disappointment. Knowing that your Investment Adviser is always available to answer your questions creates trust, which is the starting point of a long-term investment relationship.
Game of Thrones, How I Met Your Mother, Modern Family, Friends, The Wire – all phenomenal TV shows that have provided for many hours of pleasure and delight. For a lack of a better word, I can say that I was invested in these shows, as I did not want to miss any episode, or even dare not watch to the end.
Why then do investors tend to, figuratively speaking, channel hop between investment plans?
One can provide many philosophical answers to this age-old question. Clients who do not understand the purpose of their financial journey, tend to stray off course. They easily lend their ears to the whispers of friends and family who might not have the same set of goals. Not only will this cause investors to become disillusioned about their financial journey, but they will also lose interest in their financial plan, as they fail to see the results that were discussed.
For us to reap better results as investors, we might consider including the following core elements in our Financial Investment Road Map:
In all these points listed above, communication and trust are two of the key elements that will lead to investors relinquishing the remote control of their Investment Journey. Yes, there will be nail-biting times, and hopefully a lot of smiles as well.
Investing is supposed to be a lovely experience – do not make it a horror that will keep you awake for days.
Happy investing, remember to put down the remote control.
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