.jpeg)
We live in an age where information surrounds us. Whether it’s stock predictions, corporate updates or advice on where to invest your hard-earned money – ideas are everywhere. However, that doesn’t mean all information is high quality, nor are all ideas good advice for you or your goals. So how do you discern the bad from the good?
Focus on Your Goals
It’s easy to get swept up in an idea. And the fear of missing out can lead to feelings of anxiety. In other words, financial FOMO (fear of missing out). According to Merriam-Weber’ dictionary, FOMO is the “fear of not being included in something (such as an interesting or enjoyable activity) that others are experiencing.”
Remember, even if an idea is good, it doesn’t mean it is good for you. In the same way, the best poker tip will not necessarily help a curler. Just because someone has a hot tip doesn’t mean it plays well with the game you’re playing. In fact, it could distract you from the win you seek. That’s why it’s important to define the game you’re playing – your goals for investing. This will keep you on track and avoid distractions.
Evaluate Your Source
News outlets, podcasts, and influencers need consumers to be profitable. Therefore, they tend to prioritize interesting speakers their consumers want to listen to. They are also paid to advertise and promote products. This is why the first thing to do when assessing financial information is to consider their source of income – and if there is an external reason for promoting a product or strategy.
Next, is to identify any possible red flags that may be present in the person giving the advice.
Red Flags for Financial Guru’s:
- They have no formal credentials.
- Thier advice compromises any part of your current plan
- They don’t welcome discussing opposing views or different options
- Claim their idea(s) are for everyone
- Claim that you will make lots of money quickly
- Claim profits are a sure thing or guaranteed
- Claim there's no or little risk involved
- They are not able or willing to explain the underlying details of their advice or answer questions
Ask Your Portfolio Manager
If you evaluated the source of the advice and believe it will compliment your goals, it’s time to bring in your Portfolio Manager (PM) – such as the Q Wealth Associate Portfolio Managers at KLT Wealth Management. Your PM will be able to evaluate the idea and determine if it will bolster or distract the plan you’ve already established together. They should then explain why they’ve made their decision regarding the strategy, answer any questions, and propose alternatives, if one is necessary. Do not hesitate to tap into your PM’s expertise to evaluate financial strategies as it’s their goal to optimize your portfolio towards success.
To discuss possible strategies for your financial plan, contact KLT Wealth Management.
- Courtney Beach, QAFP
