You may have heard talk of ‘helicopter parents,’ to refer to parents who won’t give their children space to grow because they are constantly hovering over them and perhaps even trying to do school assignments for them. Well, as Fee-Only financial advisor Margaret R. McDowell explains in “Don’t hover over your investments,’” you may be a ‘helicopter’ investor if you are not giving your investments time and space to grow.
As McDowell explains, all of out technological advances may be hurting our investment portfolio if we use the computer and phone apps to continuously check on our investments. While there are always exceptions, for the most part, you cannot expect instant returns on an investment. And sometimes investors who keep checking on an investment and find themselves disappointed are tempted to sell or switch to new investments without giving their money time to grow. It would be nice if all investment simply gained more and more as time went on but that is not the case. If you find that your investments dip or remain steady on one day that does not mean you are doomed.
While McDowell says that she does check client investments often, she suggests her clients take a break from checking on investments too frequently because:
“…the maturity and patience to adhere to a definitive time horizon is at odds with our instant gratification culture. Novice investors who want a home run within three weeks or even three months are often sorely disappointed to discover that successful investing resembles a marathon, not a sprint.”
While you should be aware of how your investments are doing, working with a Fee-Only financial advisor you can trust means that you do not need to hover. Your financial advisor can work with you to plan an investment strategy that will help you reach your long-term financial goals.