In times like these, it’s good to get your bearings. But sometimes there’s too much going on to do so. It’s why in my regular conversations with you, we talk about what’s going on in the world, but also what’s happening in your neck of the woods.
What you’re telling me is how you want to derive enough cash from your portfolio and maintain purchasing power. This can be done, but remember, there are plenty of firms out there that will make promises that may be hard to keep. It’s why I want you to avoid the hard sales tactics and figure out who you can trust.
It’s important to work with a fiduciary. That’s someone who is legally bound to put your interests ahead of their own.
Get the Investment Counsel You Deserve with a Fiduciary
If you ask the person(s) handling your money one question, it should be this: Are you a fiduciary? Because when you work with a fiduciary, you’re working with someone who, by law, must make financial decisions in your best interest.
Isn’t that obvious, you may wonder? I wish it were. But when you look at the lay of the land and the position investors are put in—pressured to buy—especially in their retirement years, you have to wonder how it got this way.
Too often, investors make decisions based on what they’re told. They don’t read the prospectuses, and they don’t spend time understanding the industry. OK, yes, I know it’s a confusing industry, and it’s that way on purpose. But there are independent-minded advisors out there who will tell you right from wrong.
Looking at past performance tells you nothing about tomorrow—driving through your rearview camera doesn’t tell you what’s ahead—what’s over the horizon.
What draws me most to Fidelity Investments is that it’s still a family business. It is not publicly traded. It isn’t under pressure by Wall Street to “improve” or increase earnings every quarter. Yes, they want growth, but at what cost?
What this allows is for Fidelity to be long-term minded. It’s a more prudent way to run a company. A way to make decisions with the future in mind, not the next quarter. It’s how decisions should be made. Isn’t that a partnership you want instead of being sold new products through email like you’re their next meal?
There’s plenty of old money up here in my neck of the woods. It comes with an attitude, old money, of protecting every penny you have. Old Yankee money is tied to Fidelity Investments, an old Boston-based firm. There’s a lot of history behind how money should be handled.
Seek out independent counsel and demand a fiduciary. But if you need to decide which one comes first, always, always seek out a fiduciary.
Action Line: When you want to talk about your portfolio with a fiduciary by law, email me at ejsmith@yoursurvivalguy.com. And click here to subscribe to my free monthly Survive & Thrive letter.
Originally posted on Your Survival Guy.
