Getting your tax documents together, preparing your budget, and getting organized should be on your list this January, but you might want to add - Find a Financial Planner to that list.
When Sallie Krawcheck, Bank of America President of Global Wealth & Investment Management, sat down for a recent roundtable conversation with six longtime Merill Lynch clients, there was no way of knowing where the discussion might lead. In the wake of last year's historic market downturn, these clients could have expressed ongoing fear or anger at Wall Street. But they had a for more positive story to tell -- one that hinged on their resilience and hopes for the future.
During the conversation, the clients gave their voice to a full range of concerns and raised questions about market volatility and the impact on their goals and financial future; how to continue their philanthropic efforts during uncertain times; and how to stand by their commitments to fund education and legacies for their children and grandchildren. Optimism about the market's recovery and future economic prospects emerged, as did a renewed appreciation of the crucial role their Financial Advisers continue to play their lives.
Darryl Mayes, an Atlanta entrepreneur in his forties, credited his Financial Adviser's steady guidance for helping him and his wife, Ena, resist their instinct to flee the market turmoil. "She supported us and encouraged us to stay invested, " said Mayes. "We were very glad for that advice when the markets began to recover, because we hadn't sold out when everything was at lows."
The remarks of Bill Iredale, a 68 year old retired business owner from Delaware, captured the hopeful spirit voiced by many participants. "Last December was really frightening." Iredale recalled. "But we've come through it all quite well. We don't have the net worth we did right after I sold my company 12 years ago, but we have every bit of the quality of life -- and now the markets have been coming back."
Krawcheck asked clients about their personal investments goals, the Merrill Lynch-Bank of America combination and their working relationships with their Financial Advisers, Nina Vaca,a Dallas entrepreneur. described how her Financial Adviser has helped in "all three aspects of my life -- family, business and giving back to the community."
These observations touch on real-life issues and challenges that Merrill Lynch clients and their Financial Advisers face every day. Hearing clients describe the creative solutions that emerge from their collaborations underscores the value of these enduring relationships.
Some red flags to think about when looking for a financial adviser:
- If your planner guarantees you big returns, make a run for it. There are no guarantees when investing.
- Your checks should go to a third party custodian...not to the planner or their company.
- Never be pressured into a specific investment. Remember - This is your money.
- Don't fire your adviser if you don't make double digit returns. even the most level headed and accomplished investors had poor performance the past two years.
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