Risk and reward go hand in hand. When it comes to investing, some risk must be taken in order to reap the potential rewards the market has to offer; however, taking too much risk can not only jeopardize your portfolio, but your way of life and the well-being of those who depend on your financial support.
As a sales professional you know that your profession is a risky one—little corporate loyalty exists in the industry and you are compensated with a combination of assets from bonuses based on performance to stock options and restricted units. A number of factors including underperformance in a single quarter could put your cash flow and job at risk.
The Sales Professional Mindset Can Hurt Your Financial Plan
By nature, sales professionals are more prone than the average investor to take on higher levels of risk with their investments. Why? Essentially, the very nature of their careers and what that career requires. Sales professionals are uniquely qualified and suited to do what they do.
Simply put, there aren’t many professions with such a high-risk profile. The profession requires grit, dedication, a thick skin, and a level of confidence that carries professionals in the industry over rough waters. However, it is this same mindset that can injure their financial plans. Taking risks may be rewarded in sales, but when it comes to investing, too much risk can be a malaise.
Sales Professionals Need to Hedge Against Risk
The task for you as a sales professional, then, is balancing the risks involved in investing against your already risky career to maximize reward and hedge against financial disaster. Typically this means reducing portfolio risk by owning less equities, remaining diversified, and building a strategic plan on how you will exercise your company holdings.
When you work with a financial advisor, one of their top priorities should be to assess your risk tolerance level. This assessment should include the uniqueness that your sales profession brings to the risk mix. The most important thing to remember is that the way you approach financial planning and investing will be different from that of your friends and family. You and your advisor must take extra care to safeguard against unnecessary risk due to the risky nature of your profession.
How Does Your Current Financial Plan Measure Up?
Are you currently working with an advisor to mitigate unnecessary risks in your financial plan? How well do you think your advisor understands your unique professional? Just as you are a specialist in your line of work, you should also seek a specialist when it comes to choosing a financial planner. You’ll want to work with an advisor who understands the idiosyncrasies involved in planning for a high-income-earning sales professional.
At Meenes Wealth Partners, we specialize in helping working and retired sales professionals build a financial plan that allows them to build and retain more wealth to live life on their own terms. To learn more about our comprehensive wealth management services customized to your needs, visit our website or schedule an introductory conversation with us today.