Outside the Box: 2 ways your financial adviser may be steering you wrong

by | Oct 4, 2023 | Stock Market

In the complex and confusing world of investments, a financial adviser may be the key to your future success. But understanding their limitations may be just as important to your prosperity. Investment professionals whose income is based on your total assets, charge you an assets under management, or AUM, fee. They may perceive your financial options from their perspective without looking at your whole portfolio. Your investment adviser may have grown your assets and done well for you over the years, but their focus on AUM may directly or indirectly result in misleading guidance in two ways: 

1. How and when they recommend enacting your goals. 2. Placing unnecessary limits on your spending. No one wants to run out of money in retirement. However, when investment professionals fail to understand your priorities, their advice may put you a bit off track or worse, cause tax issues or unnecessary stress. Read: How do you know if you should fire your financial adviser? Calling in other professionals to match your goals You may need to think beyond your investment adviser when your goals are more diverse than just investing. Having a team working on your behalf is practical and may guide you and your adviser to accomplish your financial vision. You may want to bring in an objective Certified Financial Planner or a financial team to explore the bes …

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