It’s official. My daughter does not like one of her teachers this fall. She is distressed that she has to sit in class with this teacher each school day until the end of the semester.
Every student has a story about a teacher that they did not like. In my daughter’s case it is not about like or dislike. The teacher in question is just not her all-time favorite.
My daughter’s dilemma got me thinking. Do you like your investment teacher?
The professional investment advisor that you choose to work with is a very important person in your investing career. He or she will have a great deal to do with your investment returns and the amount of risk that you take to get them.
In grade school, high school, and college, we don’t have much of a choice in the teachers that we get. After that, you have the option to decide on who teaches you.
Professional investment advisors need to listen carefully to your questions and concerns.
What kind of person you are almost always determines what kind of stock and bond market investor you are. Conservative, organized, and interested in real life translates to how you take care of your personal investments.
The amount of stock and bond market risk you are taking now should be at the top of your list of concerns. Make sure you know exactly what you own in both the stock and bonds markets now.
At the top of the list of your concerns should be the following two questions.
What happens to my stock market investments if the stock market declines in a big way?
What happens to my bond market investment if interest rates continue to rise?
You need to hear from your current investment advisor a logical and organized game plan for each of these two worst investment cases play out in the near term.
You have a choice in your investment teacher now and going forward. Choose wisely and be comfortable with you teaches you. You should not continue a bad relationship with a person who has a significant impact on your stock and bond market investment returns.
Ric Lager
Lager & Company, Inc.
