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Value of Advice, by Calvin Yeo

Financial decisions are often rank as one of the most important life choices any person can make. Unfortunately, they can also be rank as one of the most difficult to make.

People don't walk into a bank and ask the teller, "Do you have Global Equity Investment Fund? I would like to buy a kilogram of it if you have some." Now we don't do that, do we? That is why as investors, we tend to seek a little more than just having the product at hand.

As an investor, we are faced with a wide array of local and global investment opportunities, each with varying risk and return possibilities. While this gives us greater flexibility and choices in our financial planning decisions, going through the various alternatives can be challenging, even for well-versed investors. In other words, to really get the best out of what is available in today's market, you need to have time and expertise to make the right decision.

Addition to that of the complexity and volatility of today's financial markets, and it is easy to see why investing is often described as an exercise in uncertainty.

Why a Financial Adviser?
Many people believe they are capable of making their own financial decisions. Yet, in reality, they lack the time, resources or the specialised knowledge to do so.

In truth, getting financial advice from a financial adviser has its advantages. Your adviser can work with you to:

1. Determine your personal risk tolerance, investment horizons, investment expectations and investment objectives.

2. Customize a suitable asset allocation strategy. This is a skill that requires the understanding of the first point before looking into the various investment component to finally derive the allocation strategy.

3. Navigate through the multitude of investment products and solutions, and help you select those that best suit your personal situation.

4. Actively and continually monitor the long-term progress and relevance of your investment portfolio. The global investment climate is ever changing and this is the most important step of any steps. Simply because of the ever changing investment climate, that more than explains why a person needs to constantly look at his or her financial or investment portfolio with their financial advisers.

Should a situation arise where by a person's investment portfolio needs to be re-balanced, then there should be no procrastination and the re-balancing process should proceed. this process itself could save us from further loses whenever a market moves against us.

This is an ongoing and discipline exercise and this approach will help us avoid some of the pitfalls and also limit ourselves to the influence of emotions when we make our financial and investment decisions.

In short, working with your financial advisers enables you to make more informed and better decisions without having to learn and apply the finer details yourself.

But one must take note that, engaging a financial adviser to help you in handling your financial and investment decisions are no guarantee for success. I believe in a sound and well-diversified investment portfolio which will go a long way towards improving your chances of successfully meeting long-term financial goals and objectives.

In short, get a good financial adviser and stay invested over the long haul, because history has a way of repeating itself. Those who stay invested over the long-term tend to benefit.

Calvin Yeo, CFP, MBA, CPT
Wealth & Financial Coach. www.TheWheelofWealth.com. Calvin is also a speaker and trainer in the area of Wealth and Financial matters. With 17 years of experience in the financial industry, he is also an expert in Entrepreneurship and Business Strategies and is about to publish a book call, "Death of Sales". You can visit it at www.DeathofSales.com.