New Year’s resolutions

It’s a new year, and if you’re like many people, you’ve made
some New Year’s resolutions.
It’s a new year, and if you’re like many people, you’ve made some New Year’s resolutions.

You might want to add one more resolution: Get quality financial advice in 2003.

In an age of financial Web sites, financial news programs and financial publications, why is it so important to seek face-to-face assistance from an investment professional?

To understand why these other sources are no substitute for personal interaction with an experienced financial professional, you need only consider two events of the past couple of years: the series of corporate accounting scandals and the long bear market.

Why do people maintain faith in their investment representatives in good times and bad? Just consider what financial professionals offer.

Appropriate recommendations – You can find “hot investment tips” on the Internet, on television and in magazines. But what good are these tips if they aren’t right for you? A qualified investment professional will only make recommendations based on your tolerance for risk, investment preferences and long-term goals.

Diversification strategies – Diversification is one of the most important factors in effective investing. By spreading your investment dollars among a variety of asset classes – stocks, mutual funds, bonds, government securities and money market accounts – you help to reduce your overall risk level and increase your chances for success.

Portfolio reviews – Over time, your life will change in many ways. When you’re first starting out, you might just want to save enough money to make a down payment on a house.

At each of these stages, your investment needs will be different. A financial professional can help you review your portfolio at regular intervals to make sure you’re on track toward meeting your goals.

Start by asking your friends and relatives who they use. Then interview a number of professionals to see if their style and investment philosophy suits your needs.

Don’t be afraid to ask questions and make sure you know how a prospective financial professional gets paid.

Start 2003 off right by finding a suitable, capable investment representative. By fulfilling this one New Year’s resolution, you can reap the rewards for decades to come.

Brad Ledwith is an investment representative with Edward Jones and has an office in downtown Morgan Hill.