FINANCIAL FOCUS
KRISTI TREVINO Financial Advisor Edward Jones
www . edwardjones . com / kristi-trevino
WHY Should You See a FINANCIAL ADVISOR ?
The social distancing and stay-at-home orders necessitated by the coronavirus have led many of us to feel isolated . Still , we ’ ve fought back through social media , “ virtual ” gatherings and walks in the neighborhood , where we could greet friends and neighbors ( from 6 feet away ). But when you ’ re dealing with the financial effects of the virus and you ’ re investing alone , you could encounter some problems that may prove costly .
Of course , with so much investment-related information available online , on television and in any number of periodicals , it ’ s not surprising that some people feel they can invest without any assistance . But the volatility of the financial markets over the past few months has also pointed to the dangers of going solo in the investment world . And you might find that a professional financial advisor can help you in several ways , including the following :
Taking emotions out of investing . During this period of market turbulence , many self-guided investors are letting their emotions drive their investment decisions . As a result , they sell investments when their price is down , “ locking in ” their losses . Furthermore , if they then stay out of the financial markets , they will miss out on the eventual recovery – and some of the biggest gains in market rallies usually occur right at the
beginning . But if you work with a financial advisor who has helped you develop a personalized investment strategy based on your goals , risk tolerance and time horizon , you will be far less likely to react to extreme market conditions by making ill-advised decisions .
Maintaining perspective . When you ’ re putting away money for the future and you suddenly have a lot less of it , you might start to wonder if that future is somehow in jeopardy . But if you ’ ve been working with a financial advisor and following your investment strategy , you ’ ll know that you don ’ t have to immediately cash out those investments that have lost value , and you may not need to liquidate them for decades if they were designed for a long-term goal , such as retirement . By the time you do need to sell them , their value may well have appreciated significantly . And if you ’ ve got a well-constructed portfolio , you ’ ll also own shorter-term , less volatile investments to help meet your current cash flow needs .
Understanding the history of investing . The recent market instability is unique in the sense that its cause – a worldwide pandemic – is so highly unusual , and it hopefully will be a once-in-a-lifetime experience . Typically , prolonged market downturns are triggered by explainable financial or economic factors , such as the bursting of the “ dot-com ” bubble in 2000 . However , market drops of 20 percent or more – generally referred to as bear markets – are not at all unusual and have happened every few years over the past several decades . Financial advisors are well aware of this history and share it with their clients . And for many people , the knowledge that “ we ’ ve been here before ” is reassuring and makes it easier for them to continue following their investment strategies .
The road to your financial goals is a long one , with many twists and turns . So you might like to have some experienced company along the way .
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor .
22 MOMENTUM