Are you an orphaned investor?
Written by Lynda Calver on August 12, 2015.
If you google ‘famous orphans’, you’ll find a surprising number of examples of people who proved that it is possible to overcome the difficulties of a childhood without a mother and father and go on to achieve greatness. They include Eleanor Roosevelt, Malcolm X, Nelson Mandela, Louis Armstrong, Leo Tolstoy and of course, the great Harry Potter!
In spite of these wonderful stories of triumph over adversity, the state of being an orphan is not one to be envied, and nor is that of being an orphaned investor, a phenomenon which affects an equally surprising number of people.
Orphaned investors are those who have divorced themselves from a previous financial advisor, possibly the person who originally devised their financial plan, and no longer have anyone advising them. There are numerous reasons for such a split to occur – it could be that an investor no longer believes that they are being given good financial advice, because returns are lower than expected or an adviser has left the job or moved to another company.
What is inadvisable is to remain in this state of limbo for any length of time. Financial goals change and evolve and it is important to regularly review your situation and adapt your plan, especially in the face of big life changes such as marriage, divorce and the birth of a child.
In addition, investments need to be actively managed. Those that aren’t could be failing to produce the returns necessary to achieve your financial objectives, or could even be making losses over an unnecessarily long period.
If you feel that your investments have been neglected, it is time to redress the situation. Just as those famous orphans listed above snatched success from the jaws of adversity, you too can turn around your financial situation by seeking an adviser who you can put your trust in.
But how do you find a good one? Have a look at this post which tells you the four most important questions to ask when looking for a financial adviser, then take action and find someone who is a good fit for you. You have worked hard for those investments, it makes sense to make absolutely sure that they are working as hard as they possibly can for you.