Here Are Four Keys to Smart Financial Planning

By Alan E. Becker / TNJ | 3/2/2017, midnight

The same holds true for the market. Let's say you set up your portfolio to be less susceptible to volatility while your buddy hangs onto a plan that has far more risk. If the market has a good quarter and he brags about his return, it will be tough not to wonder if you should have followed his lead. Don't. He might not be in the same place in his life. He might have other sources of income to depend on if the market experiences a downturn. (And when the market does take a downturn, you probably won't hear about his losses.)

Choose an adviser who fits your investing style. If you like to travel at 35 mph, you probably won't be happy with a driver who goes 55 or faster. The same holds true for your finances. It's about an investment philosophy and a mutual understanding of what you're trying to accomplish.

My clients want me to have my finger on the market's pulse, to make adjustments when necessary -- always keeping their risk tolerance in mind -- and to keep them informed. That's the idea of working with a fiduciary.

If your adviser says "it's only a paper loss" or "it will come back," you may not be investing with a low-volatility approach. Don't be afraid to look elsewhere or, at least, to get a second opinion.

(Source: TCA)