When the DOW opened down 1,100 points on August 24th, did your heart take a nosedive into your stomach? And if you’re one of those investors who have decided to save a few bucks and trust your investments to a robo-advisor, what kind of guidance or reassurance did you get from that advisor? Did you panic and sell out of the stock market fearing it would continue to plummet? If so, you weren’t alone.
If you had a real financial advisor to talk you back from the ledge, you may have rallied later in the day just like the stock did. You could have saved a lot more than you lost.
Nothing could more poignantly emphasize the value of a real, live human financial advisor better than this most recent event. Only a real advisor will keep you from selling at the worst possible moment. So much focus has been on the cost of financial advice in the form of “backdoor payments and hidden fees.” What no one is talking about is how real financial advice can help you save so much more. You wouldn’t sell at the lowest possible price and buy at the highest.
Instead of placing your focus on the cost of financial advice, why not turn your attention to the real benefits. Thousands, tens of thousands of dollars and more were lost on August 24th by the average investor who had no one to turn to. Unfortunately, this kind of experience is harsh. Perhaps now though the real value of good financial advisor is better understood.