How Fiduciary Financial Advisors Help in Uncertain Markets

Published March 15, 2023

Financial Advisors are an asset during volatile periods.

Investment Advisors set you on a clear and steady financial path.

A fiduciary financial advisor is obligated to always work in the client’s best interest and builds an investment approach designed to work over your particular time horizon. When creating your plan, advisors should consider your risk tolerance, financial goals, investment preferences, tax implications, and future withdrawals. One Day In July advisors also have experience in the market and understand that there will be ups and downs over the lifetime of your portfolio. That is normal stock-market behavior. While the swings can be unsettling, working with a financial advisor helps provide assurance that can ease market anxiety.

Investment Advisors help prevent behavioral errors.

The desire to “time the market” is a behavioral error that can lead to a loss of performance over the long haul. Investment advisors are a rudder in the storm by reassuring clients that they have a great plan and that fluctuations occur regularly. If timing the markets were a successful approach, we would see many people doing it successfully, but we do not, particularly in the long term. Often, we hold onto appreciating assets hoping to squeeze out more gains and hold onto assets after they’ve fallen in value, hoping for a resurrection. This behavior is quite common and results in buying high and selling low.

Investment Advisors save you time and relieve stress.

As fiduciary investment advisors, we hope to shoulder the time and worry for you. Investing correctly takes time, something you can get back when working with an advisor. They take the time, do the research, and put the plan in place. This “time credit” is rarely calculated into the value of an advisor, but it is an important consideration. Combine this added time with the reassurance of a solid financial strategy, and most will find solace in that.

Conclusion

Current headlines surrounding the debt ceiling, banking, and market uncertainty are causing confusion and anxiety. A fiduciary financial advisor can relieve some of those feelings with a steady approach, professional knowledge, and the “client-first” nature of being a fiduciary. If you feel stressed or uneasy about your financial future, consider reaching out to discuss how we can set you on a steady path.