Roderick MacKenzie ranked as the #1 Financial Consultant in Business™ for 2010!
How To Invest Your Finances?
Financial investment advisors all over the world are in the hot seat right now, and for good reason—their clients have been rocked by the recession. Trillions of dollars virtually evaporated almost overnight as the world financial markets teetered on collapse and as major global financial institutions imploded. Investors were caught unaware, right alongside of most of their financial investment advisors. The first question that everyone asked as all of this unfolded was, simply “Why?” The second question, fittingly, was “How?” They are still valid questions today.
The sad reality is that many financial investment advisors don’t really understand how to create a sound and secure long-term investment strategy. Most financial investment advisors are certified—although not necessarily well trained —to broker stocks and other financial investment instruments. They understand the legal ramifications of trading securities and know the specific processes required to do so. They understand how the markets work—at least in a mechanical sense—but not necessarily what drives those markets.
This deficiency came into razor-sharp focus when the global economic tsunami hit. All of the signs were on the wall, writ large, for anyone with the training and insight to notice.
Unfortunately, most financial investment advisors lacked the skill and experience to recognize what was actually happening. They advised their clients to “hang tough” and to “stay the course.” All financial investment advisors know full well that the market occasionally needs to correct itself. In the financial investment advisory world, it’s a fact of life. You just suck it up, deal with it, and move on.
The Power of Asking the Right Questions
Much of this, of course, turned out to be bad advice—really bad advice. The perceived market correction that most financial investment advisors saw as little more than a blip on their collective and figurative radar screens was, in reality, an iceberg of epic proportions- a financial anomaly so severe that it rivals the Great Depression in terms of potential economic impact. (It’s almost scary to realize that it was only our modernized and updated international banking system that saved us—barely.)
Think along these lines: If you have a car that gets a flat tire, you go to a mechanic to fix it. But let’s say that you have a car where the wheels fall off—all at the same time. You’re driving along, and all of a sudden, the car starts to shake, and it gets increasingly severe. You call your mechanic on your cell phone, and tell him about the problem. He tells you to keep an eye on the situation, but to just go ahead and keep driving. You of course listen to him—and you really want to believe what he’s saying—and then all of a sudden, off they come, all four wheels at once. Guess what—that’s not a problem for your mechanic to fix. You need to talk to the engineer that designed the car. In fact, you probably should have called him in the first place.
The same thing applies to your investment portfolio. When the whole thing starts shaking and it seems like the wheels are going to come off, you don’t need to talk to financial investment advisors who are experts at buying and selling stocks and securities. You need access to financial investment advisors who see a bigger picture, a financial investment advisor who understand the machinations of global macroeconomics and the socioeconomic factors that drive it. No, it’s certainly not something that every financial investment advisor is familiar with. But it’s something yours needs to know.
The bottom line here is that you need to be able to ask your financial investment advisors the hard questions. You don’t need a babysitter and you don’t need someone to bounce you on their knee and tell you everything will be fine. The folks who bought into that the last time wound up losing billions. Make sure your financial investment advisors understand the big picture and can engineer a financial investment strategy that preserves your wealth and protects you going forward. And don’t forget to ask the hard questions. It’s your money—and it’s your future.