I use electronic tools to make my investment decisions; why should I seek an investment professional?
The Internet and personal financial planning software have led some investors to believe that this new wealth of easily accessible financial information eliminates the need for advice from an investment professional.
At CBIZ, we believe that these may be convenient tools for tracking your investment
portfolio, but they do not provide personalized, in-depth advice to help you create
and maintain a portfolio tailored to your unique investment objectives.
An investment professional can help you manage your financial future by monitoring your portfolio, answering your questions and suggesting new investment opportunities as they arise.
Learn more about what you should expect from an investment representative.
The key for mutual fund investors is to define and recognize the value of professional financial services, and then insist on getting that value. When you pay a sales charge or a fee, what can you expect an investment representative to do for you?
At a minimum, your representative should:
Understand your needs and help you formulate long-term investment goals and objectives.
Before making specific recommendations, your representative should try to gain a "whole picture" of your past experience, lifestyle and goals, as well as your other investments and current financial situation. When are you planning to retire, for example? Do you have life insurance? Do you own real estate? How secure is your job?
Help you develop realistic expectations by discussing the risks and rewards of each investment.
Every investment choice has its strengths and weaknesses, and you should never feel less than fully informed. When you ask questions, or have doubts, you should expect your investment representative to answer honestly, and help you develop a strategy that is both realistic and comfortable for you.
Match your goals and objectives with appropriate mutual funds.
You should expect your representative to make clear and specific recommendations, and explain the reasons behind them in terms you can understand. Of course, the representative should be confident and well-informed about the management and portfolio strategies of any mutual funds recommended.
Continually monitor your portfolio and help you interpret performance.
Your representative cannot influence or predict a fund's results. However, he/she should discuss results with you and help you judge your progress. You should feel that you can always ask your representative, "How am I doing?"
Conduct regular reviews to ensure that your strategy continues to provide optimal results for you.
One of the most valuable services your representative can provide is to help you "stay on course" with your investment program. But "staying on course" long term doesn't necessarily mean staying put. Expect your investment representative to work with you to adjust your portfolio in response to any significant change in your lifestyle, priorities, assets or responsibilities.
These are the basic services that investors should expect from their investment representatives. Beyond the basics, many investors could use more specialized assistance, such as advice on retirement plan distribution options; setting up and servicing retirement plans for small businesses and self-employed individuals; developing tax-advantaged strategies for children's college educations; insurance, estate, and trust planning; and year-end mutual fund tax advice. If you need specialized services, there are many investment representatives who can help you obtain the help you need.
