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Focus on the Long Term in
Your Financial Plan
Seek Independent Advice to Craft a Personal Strategy
Yet that could be the worst move for your financial health, says G. Carl Mahler, a Raymond James advisor in Midlothian, Va. Drawing on four decades of investing experience, Mahler gives this advice: “Devise plans in good times and don’t deviate from them in bad times.”
The past proves this out. In every bear market of the past 80 years, those who stuck to their plans and waited out the market bottom saw stocks rebound to their original levels, usually in about a year. Those whose risk tolerance led them to invest more during downturns saw even faster returns. On the other hand, selling at the bottom in those bear markets would have realized losses ranging from 15% to 78%, according to data from Morningstar and Alliance Capital. Of course, no one knows what the future holds, but “time lends clarity,” says Mahler. “This has happened before, and the market eventually recovered.”
To Execute Your Plan, Control Emotion
For most of us, however, reining in emotions is the most difficult task in managing a portfolio. According to research firm Dalbar’s analysis of investing patterns from 1986 to 2006, the average equity investor’s gains barely outpaced inflation, even though the market posted an 11% gain annually. Why?
Researchers determined it was an emotional aversion to losses that led people to make buy-and-sell decisions at the most inopportune times. That’s why at Raymond James financial planning is focused on your long-term goals, with advisors committed to crafting a strategy with you and then guiding you through the bulls and bears.
“When practically anything can go with a client’s portfolio, we have a plan for when it goes up and for when it goes down,” explains Greg Ghodsi, senior vice president of investments at Raymond James in Tampa, Fla. “We execute on your plan. And you can always make changes when appropriate.”
Building Relationships Based on Trust
Bolstering the process is Raymond James’ unique culture of independence among its financial advisors, providing them the freedom to offer unbiased advice tailored to your best interests. That has not only drawn 1.9 million clients nationwide to Raymond James, but also advisors committed to providing true counsel to their clients.
In 2007, James M. McLaughlin and his team moved their New Jersey practice from association with a well-known Wall Street firm to Raymond James because of its adherence to individual solutions from independent advisors. “We chose Raymond James because it really does have a policy — and a history — of putting clients first.” And that means no hidden commissions and no products pushed to meet quotas. Just one-on-one relationships centered on your unique circumstances. Adds McLaughlin, “Quite simply, we feel that if we do well by our clients, we will do well over the long term.”
Past performance is not indicative of future results. Investing involves risk and investors may incur a profit or a loss. Raymond James, member SIPC.