Keep your investment account healthy and free from disruptive viruses

Keep your investment account healthy and free from disruptive viruses

Currently, moms and dads are constantly worried about all those winter viruses that kids seem to bring home this time of year. The former nurse in me always seeks out ways to protect our family from illness. The simple practice of washing hands, getting your flu shot and avoiding sick contacts goes a long way! Did you know there are also simple yet effective ways to keep disruptive “viruses” out of your investment accounts? They can lurk in the shadows, creating havoc without you even seeing them.

Are you aware that using the wrong share class of funds can costs investors as much as 1% or more in overall costs? The exact same mutual fund can have 6 different share classes, all with varying fees associated with them. The least expensive share class will not pay any commissions or inflated fees to your financial advisor. They are commonly referred to as Institutional Share Classes. Higher fund expense ratios will act like a virus, quickly eating away at your portfolio performance. You should ask your advisor if you are using Institutional Share Classes and if they are unable to offer them, you should consider the merit of using an advisor who can.

Do you want to make sure that your investment advisor puts your needs ahead of their own?

Most people would say without hesitation, “yes!”  However, few know that in order to ensure this, you must hire an advisor who acknowledges themselves as a Fiduciary.  Many financial advisors act as a non-fiduciary, which means their recommendations do not have to be best for you.

In short, besides the fees you pay your advisor, they can also accept commissions or receive other financial benefits from the mutual funds or products they recommend to you.  Just as a physician has taken the Hippocratic Oath to “do no harm,” financial fiduciaries have a legal obligation to always act in your best interests first.

Imagine going to the doctor with a cold and finding out they prescribed you a very expensive unnecessary medication because he received tickets to a sporting event for doing so. Working with an advisor who is a fiduciary means they can’t make recommendations that are not in your best interests.

A Virus threatening your investments….

Are you well diversified, using the right mix of stocks, bonds and cash? If you aren’t sure, you could have a virus threatening your account’s long-term health.  It is crucial for an investor to make sure they have the proper asset allocation based upon their goals and time horizon. Being too conservative early on, or too aggressive later can cause consequences that will be difficult to overcome.

When you see your physician for your annual check up, they don’t just check your lungs or eyes. Rather, they look to see how all your systems are working together and determine if any recommendations should be made based upon your exam.  A holistic advisor will look at your overall financial health and be able to help you make decisions that will give you the best opportunities for success. No two investors are the same; the right advisor will guide you through a comprehensive screening and then help you interpret what the results mean.

Simple steps to avoiding Viruses….  

Just like a simple practice such as frequent hand washing can prevent winter sickness, so will a simple check-up of your financial strategy, help keep your investments healthy and free from costly disruptions.

If you have any questions in reference to “viruses” that can affect your financial health please don’t hesitate to contact me, of course with no obligation.

Wishing you and your family great physical and financial health.

Ashley Rosser, President

Prior to her career in the financial services industry, Ashley earned her Bachelor of Science in Nursing from Cedarville University.

Ashley decided to make a career change from her ten years within the healthcare industry as a pediatric emergency room nurse to retirement and 401K investment planning. She joined Victory Wealth Partners in 2008 after obtaining her Series 65 professional financial license and went on to earn her AIF (Accredited Investment Fiduciary) professional designation from the Center for Fiduciary Studies.

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