An Investment Anniversary to Remember and Reflect Upon
Today, September 12th, marks an anniversary every investor has reason to remember and reflect upon (aside from the events of 9/11). Three years ago today the Housing Bubble officially burst costing investors trillions of dollars of lost wealth. That should be reason enough to reflect but it takes on heightened significance as we face a new bubble, that of the ‘global debt crisis’.
Every investor using a financial adviser to provide professional advice over the past three years should ask themselves the following questions:
- Am I in a better financial position today than I was three years ago?
- Has the value of my portfolio recovered the loss due to the Housing Bubble which burst (including the long-term power of compounding)?
- Did my adviser recommend I change my investments to a low-cost, passively-managed strategy to minimize fees and maximize returns?
- Are my investments protected from this next bubble and future ones?
- Do my investments currently have any chance of building long-term wealth for me…or only for my financial adviser?
- Can I afford another 50% loss to the value of my investments as I plan and prepare for retirement?
The beginning of this century ushered in a new and profound ‘investment paradigm shift’ that is sadly, but factually, characterized as follows:
- Financial advisers are serving their own and their company’s best interest…not that of their clients/investors. (If you don’t believe this, ask yourself the above questions again)
- Artificially induced bubbles are creating massive wealth for the financial services industry and those that work in it…at the expense of every investor
- Non-disclosure of fees that confiscate investor wealth…unknowingly
- Financial professionals offering highly complex investment products that few advisers understand (let alone investors) and that have one designated winner
So here is The S.E.I Tip of the Week: Recognize this profound investment paradigm shift, its impact on your future wealth accumulation, and the dire need to take control of your financial future.
You can take control by:
- Committing to enrich your investment knowledge
- Learning how to become your own most-trusted financial adviser
- Ensuring your investments are ONLY building wealth for you and your future