Are your investments at risk?
According to a report from FA Mag, lack of communication has kept many financial advisors from protecting their clients properly.
Not knowing about market risks puts a lot of investors on the line and sadly only one in four investors working with an advisor gets to discuss this.
This not only creates problems on the investors part but also on the market in general. People panic fast in a market downturn pushing conditions to possibly much worse state.
As an investor, you need to understand that there will always be another economic downturn. It’s a matter of time. If investors are not aware of their risk of loss then they’re prone to emotional decisions. Many will sell and panic instead of thinking of a way around the problem.
It’s better for financial advisors to tell their investors how much is at stake if there is another recession or economic downturn. This prepares them for what to expect and how to change their portfolios accordingly.
As much as many financial advisors hate the thought of scaring their clients if they talk about market volatilities, still, it’s best to be informed.
People make better decisions when informed.
An experienced Sydney financial planner can help
A financial planner takes the time to educate their clients and also explain all the associated risks. They’ll ask lots of questions and conduct research into different options to put their clients in a better place based on the risks they are prepared to take at that point in time.
A good financial planner will be in regular communication with the clients and if market information comes to light that will impact their clients, they will and should keep them informed.
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