‘I work in the one of the world’s best investment banking company and I have access to the best resources about investments. So I know what the best investment currently is. ‘
‘My brother-in-law works for the leading American management consulting firm and he will help me to plan family finances. He is very successful and he can guide me on my money.’
‘My son works in the UK in one of the leading tax advisory company and I will check with him if this is the time to invest in equity funds’.
‘My neighbor has been an experienced investor and will check with him if he has any recommendations’.
‘Our family chartered accountant has asked us to invest only in bank deposits as he feels it is very safe’.
We get to hear these types of immediate reactions from investor and it’s very common to take somebody’s opinion. We thought of pen down our take to make investor understand how harmful it is to act on hearsay.
How many times do we point to others and depend on their opinion, when it comes to investing our own hard earned money. When it comes to investing, it is to you to decide how you want to build your future with the resources you have. As per our experience, the more you rely on the inner circles to get the guidance, it gets much more conservative and things you may miss out though your ability to understand and accept risk is already inbuilt.
What works for others may not work for you. They are successful because they took decisions on their own. They are successful because they took their each step with risk and moved ahead. How many times, Have you acted on your uncle or aunt advise ‘Hey listen, this is the best time for you to invest in equity funds for your long term goals’.
If you are working in the best investment banking company, it does not have any relation to the way you manage your personal money. “Knowing is not doing” Action always supersedes the knowledge you have in Investing.
The financial adviser just gives you this communication helping you to understand the power of compounding, the potential of equity return in the long term and the asset allocation picture. The adviser tracks various trends, reads, updates and does risk profiling for you and helps you to hand hold in your crucial financial decisions.
Adviser can help you to understand your money personality, each one of us carries inherent biases around money which has been ingrained in us while growing up which influences potentially the way you make decision as an adult. Investing is very personal and cannot be generalized; taking others opinion or blindly following their path will certainly not help to achieve your milestone.