Phrases Your Financial Advisor Should Never Say

“I Guarantee a Return” 

Starting with one of the most agitating phrases to hear, “You can assume an x% return on this investment.” No one can predict where the market is headed and there is no such thing as an economic certainty. Promising that someone could get something that cannot really be promised is false hope. Rather, being straightforward is more important in building a relationship. If your “guaranteed return” doesn’t occur, it is likely that the client will move on to a new financial advisor.

“Don't Worry About…”

Fees should be clear and easy to understand. Your advisor should be up front about their status as a fiduciary. You should not be hit nor surprised with any other fees throughout the process with your financial advisor. This is your money that is being talked about, so it is vital that you are aware of all circumstances. In the worst-case scenario, if an advisor tells you that there are no fees, then it is probably best to find another company to work with. 

We cannot tell you what and what not to worry about. You should always know your fees, internal expenses, the fee you’re paying the advisor, etc. Matt Fry says, “Be aware of your fees, even if they seem minor, they can add up. Ultimately, any concern for the client is a concern for us.”

“There is No Risk”

There is always risk in investing. Anyone telling you differently may not be telling you the full truth.  All types of investing include some type of risk. An honest and good advisor will help you define the level of risk with your investment strategy. Not only that, but they will suggest other tactics that they think can help benefit you and your plan.

“We Don't Need to Meet About That”

Advisor should be meeting with you regularly about all questions you have. Whether this is a phone call, Zoom, or in-person meeting, your advisor should be open to answer any questions that you may have. Once again, it’s your financial investments that are being discussed and if your advisor cannot provide adequate answers for you, it may be best to find another one.

“Your Spouse Doesn't Need to Be Here”

Both spouses should be treated as equals and involved to their comfort level. Spouses that have the same financial goals are more likely to pursue them together which may lead to more financial success. Also, having both parties present at meetings with an advisor is crucial. It can be complicated for just one spouse and having both there can lead to having a sound plan that everyone is comfortable with. The financial advisor should have a relationship with both spouses. If there are any issues that arise, either can communicate with their advisor to find a solution. 

“It’s Not All About Performance”

For some, this is what they care about the most. At the end of the day, this is their money. They should be concerned with how their plan is performing. Your financial advisor should ask you what the most important items to you are and what you want to get out of your financial investments. That way, there can be realistic expectations set.

“Let It Run It's Course”

This may be a major red flag if you hear your financial advisor say this. Ultimately, having an appropriate investment strategy depends on, among many things, your risk tolerance, time horizon, goals, and investment product usage.  The goal should be creating a customized strategy specific to your own situation and your own financial goals. At Shelton Financial Group, we can help you do that. We cannot control the market, but we can control certain items. From that, we will use our best judgment to make necessary actions and give appropriate advice.