First, you have to cover the basics

By Mike Brady, Michael Brady & Co. Wealth Management

Most people are concerned with “beating the market” when what they should be concerned about is covering the basics: having an adequate cash reserve for things that come up, paying off high-interest loans and credit card debt; insuring against loss of income and loss of assets; and proper documents if they become unable to make their own financial decisions.

Only after the basics are covered should you think about your investment plan. And forget beating the market. Concentrate on achieving your goals and objectives, instead. If you give your investment plan enough time and enough money, you eliminate the stress of achieving a target percentage return. Why risk your future to something that neither you nor anyone else can control? Focus on the things you can control: the timing and amount of the additions to your investments.

And find someone you can trust to help you out with your money. As human beings, we react emotionally to fears of things we cannot control.

Certified Financial Planner Practitioners represent a high level of competency, ethics and professionalism. They have achieved the 4 “E”s that you should require of any financial advisor you engage: education, examination, experience and ethics.

Then ask your financial advisor if they will act as your fiduciary. Most will not. Don’t settle for anyone who won’t. A financial advisor who is held to a fiduciary standard occupies a position of special trust and confidence when working with a client.

As a fiduciary, the financial advisor is required to act with undivided loyalty to the client. In contrast, a financial advisor who is registered as a “stockbroker” or an “insurance agent” must remain loyal to their company and place the interests of the client below their own. And don’t be fooled by those hybrid advisors who claim to be fiduciaries part of the time and then not a fiduciary when they recommend products to implement their advice.

Finally, ask your financial advisor if they are fee-only. Fee-only advisors do not accept commissions on the sale of any investment or insurance products. You never have to worry about a conflict of interest inherent in sales transactions. Check out http://www.napfa.org/financial-planning/what-is-fee-only-advising to understand why.

Michael Brady is a fee-only, full-time fiduciary and certified financial planner. To set up an appointment, call 440-235-2100, email Mike@MichaelBradyCo.com, or visit MichaelBradyCo.com.