Helping clients balance their heart, mind and portfolio
As investing has become more accessible to – and arguably more necessary for – most Americans, rarely a day goes by where investors don’t encounter some sort of investment information: market commentary on TV, a stock tip (or saga) from a friend, or their own portfolio statement.
But knowing how, when and whether to use that information to help reach personal financial goals can be challenging for many investors. Especially because decisions about money are often a tug-of-war between the heart – or emotions – and the rational mind. If markets are rising, an investor’s emotions may make them feel optimistic and greedy – tempting them to invest more or invest more riskily. The mind, meanwhile, is likely to offer a more rational response, offering a reminder that investing is complex and can rarely be reduced to a universal “Buy This Now” or “Sell That Immediately” instruction.
The key is to help your clients find balance between their heart, their mind and their portfolio. That is the focus of this quarter’s Investor newsletter, which you can download and share with your clients. In it, your clients will be reminded of the value of working with you to:
- create a personal, disciplined investment plan that can help them stay immune from the heart-versus-mind frenzy during times of market volatility;
- maintain a well-diversified portfolio that can help them stick to their long-term plan, even though diversification doesn’t guarantee a profit or protect against loss;
- help keep their emotions in check to avoid making emotionally-charged decisions.