The sales profession is a risky one. High job volatility, a lack of corporate loyalty, incentive compensation structures, or even an overconcentration of equity in a single firm, all make this profession quite unique, from a financial planning standpoint.
Not all investment strategies are created equal, so it should come as no surprise that the financial industry is rife with differing opinions. However, research and science have shown that, over time, the Evidence-based (EB) approach is superior to both the typical passive and active approaches.
No one can deny that there is a direct relationship between the amount of risk we are willing to take with our investments and the returns we can expect to receive. Stocks, bonds, and real estate are all investments that have the ability to provide a nice source of income, but in order to see that reward, we must expose our principal to a certain amount of market risk.
With so many individuals in the industry claiming to be “financial advisors,” it can be difficult to differentiate between those who will truly provide objective advice and those who are more concerned with bolstering their own bottom line. Fortunately, understanding how your advisor is compensated will reveal a great deal about their client approach and the way they provide services.
When it comes to choosing an individual to manage your money, your chief concern will likely be trust. Who can I trust to help me make the best choices with my assets? How can I be sure that I’ll be offered the best advice for my unique situation and not handed a one-size-fits-all “financial plan?”
An individual’s mindset, or established set of beliefs and attitudes, can reveal multitudes about their behavior, including how they approach problem-solving, overcome challenges, and prioritize different aspects of their lives. Mindset can also illuminate areas of strength and weakness.