Why is Financial Advisor Necessary for investments ?

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A teacher thought of giving her class a fun assignment as Thanksgiving day was near. She asked kids to draw a picture of something for which they were thankful. Among all, she saw that a kid had made a different kind of picture. He drew a hand. Whose hand could it be, she thought? One child guessed it was the hand of a farmer, another said police officer, one said hand of God. The teacher then asked him – Whose hand is it? The little boy muttered, ‘It’s your hand teacher.’ Just then she recalled that the kid was shy & wouldn’t play much. He would depend on her & stand by her side when others played. She had also taught him to hold a pencil. She had tears in her eyes, as she hugged the kid.

What do we learn here?

People may not say thanks always but they will remember the hands that reached out to them. We will remember the teacher who took more effort into us. We will remember the boss from whom we learned a lot though he was strict. Similarly in investing, we remember the financial advisor who told us to stay invested when markets were going through tough times. These were the moments when the seeds of wealth creation were sown. The advisor then taught us the art of patience needed for long-term investment which is the essence of wealth creation. It’s easy to be motivated when everything is going well. The advisor taught us to stay disciplined when things get tough.

Qualities of a good financial advisor

  • Purposeful: They have a clear mission to serve clients and help them reach their goals.
  • Empathetic: They know they cannot effectively serve clients without genuinely relating to them. 
  • Authentic: They reveal their true selves to clients.
  • Intellectually curious: They continue to search for the most robust solutions for clients. 
  • Personally inquisitive: They work hard to uncover what’s truly meaningful to their clients.
  • Passionate: Their unwavering desire to do well for others drives constant improvement.
  • Honest: They set realistic expectations about controllable actions and probable outcomes. 
  • Disciplined: They don’t let market swings or media messages drive impulsive actions.