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Clarity Financial Planning Services is an advocate for your financial future who takes a holistic approach to your needs and goals.

Want to Invest in the New Year? Consult a Fee-Only Financial Advisor

stock investmentIf starting to invest or improving your investment portfolio is among your goals for the new year, consider the experience on investor outlined in the Washington Post. Rather than look at one of his investing triumphs, Chris Mayer, author and the founder and editor of “Capital & Crisis,” a value investment newsletter, chose instead to examine the misstep he made with that he considers his worst investment.

While we champion doing your research, Mayer writes that “No matter how much you love it, no matter how much you checked it out, no matter how safe it seems, you should invest only what you can afford to lose.”

At the age of twenty-seven, Mayer was a corporate banker who was feeling confident in his professional knowledge and stock-picking savvy. He chose to invest all of his IRA into a company that was part of the “death care industry.” The company operated funeral homes and cemeteries. He felt this was a no-brainer since this was a company that would continue to have business since it provided a needed service. What he couldn’t foresee was the missteps the company would take, taking on too much debt to back its growth.

Reflecting on this learning experience, Mayer writes:

“As a side note, when most people think about their worst investment, they usually think of losing all their money. What hurts even more to think about is the lost opportunity of what I could have done with that cash instead.”

Investments are one area where you can really use the expertise and perspective of a Fee-Only financial advisor. Whether you are considering investing in a company that has a great story or you crunch all of the numbers, you can still benefit from consulting a financial advisor. A Fee-Only financial advisor is there to help you secure your financial future and is not going to be compensated or penalized based on the advice he or she provides.