So how would you sum up investors’ rights?
Investors have the right to competent, honest advisors that put them first, that keeps their mouths shut, and that communicate clearly. All this is to say that investors should be special—not put on a pedestal, but made a priority. Advice and actions should be tailored to fit each investor’s situation. Financial counsel should feel comfortable, and if it doesn’t, they have the right ask questions until they understand.
The best way to feel at ease with advice is to have a plan and to put the plan in writing. An investment policy statement is a great way to develop your financial philosophy and clarify your objectives. Having a written plan helps everyone understand what you want to do with your money. This is especially important when times get tough.
With rights come responsibilities. Creating a plan is something that investors and advisors should do together. It helps everyone understand where you’re going and how to get there. All investors have goals. Writing a plan makes them clear.
Douglas R. Tengdin, CFA
Chief Investment Officer