DO:
* Have a financial plan documenting where you want to be and how you are going to get there.
* Have an investment policy statement detailing how you will make investment decisions. This will prevent you from making emotionally-
* Work with a financial planner who is compensated to provide objective advice, not an advisor who is compensated to sell products.
* Whenever possible, invest early and often. This forces dollar-cost averaging.
* Identify your risk tolerance before the next market pullback, and have an asset allocation that reflects that risk tolerance.
* Be truly diversified among large, mid, small, international, growth, and value stocks. Invest not only in corporate bonds, but government and international bonds.
* Make your asset allocation more conservative as you age.
* Rebalance your portfolio annually.
* Have an ongoing relationship with your financial advisor. Meet with him or her at least every six months.
* Update your financial plan and estate documents at least annually.
* Maintain liquidity in your portfolio. Having cash available will reduce your need to sell securities when their values are depleted.
* Take advantage of the full employer match on your 401k.
* Understand the risk/return relationship of all your investments.
* Understand how and how much your advisor is compensated.
* WORK WITH A FIDUCIARY - someone who is obligated to act in your best interest.
DON'T:
* Necessarily trust your financial advisor. Make him or her earn that trust.
* Let emotion get the best of you.
* Be enticed by new, short-term investment strategies.
* Trust "financial advisors" that encourage you to leverage your home, or push annuity products without mentioning the costs of such products.
* Neglect estate planning.
* Work with a financial planner who isn't financially motivated to constantly serve you.
* Pay high investment fees or commissions.
* Invest in things you don't understand such as gold, commodities, and options.
* Seek advice from friends and family who are not financial professionals.
* Seek advice from "financial advisors" with few tools, such as insurance or annuity salesmen.
* Use short-term investments for long-term goals, or vice versa.
* Invest for the long-term without an established emergency fund (3-6 months of expenses).
* Purchase loaded products.
* Work with a financial wolf in sheep's clothing (an advisor who is not a fiduciary).
For more information, visit http://www.utahfinancialadvisor.blogspot.com.
About Mr. Jefferies
Lon Jefferies is an investment advisor representative with Net Worth Advisory Group, a fee-only financial planning firm in Salt Lake City, Utah. He is a member of the National Association of Personal Financial Advisors (NAPFA) and a candidate for CFP™ certification. He possesses an MBA and bachelor's degrees in Finance and Marketing from the University of Utah. Lon writes articles for local magazines such as Business Connect and Utah Business Magazine, and he consistently contributes articles to online magazines such as FIGuide.com and FILife.com (by The Wall Street Journal). Additionally, Lon is a platinum expert author at EzineArticles.com. Lon has been quoted nationally in publications such as the NY Times and Investment News.
Contact Info
View Lon's blog at http://www.utahfinancialadvisor.blogspot.com, and visit Net Worth Advisory Group's home page at http://www.networthadvice.com. Lon can be emailed at lon@networthadvice.com, or phoned at (801) 566-0740.
