Financial advice or DIY?

by Mike on May 30, 2019

Financial advice or DIY?

The very fact that not everyone is schooled in the art of finance is the reason people seek out professionals to advise them when it comes to properly investing their money. However, you acquired your finances, whether by hard work or a windfall, knowing who to turn to for financial guidance makes the difference in your future. It’s difficult to know how to seek out the best source for this advice if you aren’t even sure what to look for or what all of those financial terms mean with regard to advisors. Terms like fiduciary, annuities, and market volatility can sound Greek to investors who are more concerned with the everyday aspect of making and acquiring money.


The word fiduciary is actually Latin in origin and ultimately means trust. In the world of finance, it requires an investment adviser to place the interests of their clients above that of their own. When you trust a company with your life’s work, savings, or inheritance you expect it to always look out for what’s best for you and how to make your money work for you to ensure a secure future. One would think that anyone claiming to be working on your behalf would be considered a fiduciary adviser, but that is not always the case. Beware of brokers who earn commissions on how they guide you and what they try to sell you. By reviewing investment advisers’ reputations online or by word of mouth, the picture becomes clear as to where their loyalties lie, either with your best interests or theirs.


This is also a Latin word which ultimately came to us through the French word annuité and its meaning, as you may have guessed, is yearly. But how does this apply to the finance world? This creates a situation where the investor receives a reliable, steady cash flow to yearly provide for him usually through his retirement years. This comes from either properly investing a retirement fund in order to ensure he doesn’t outlive his retirement or a large amount received through a windfall or inheritance. These can be paid out either monthly or annually and in different forms such as:

  • Immediate – once the entire amount is deposited, the payments begin
  • Deferred – at the time determined by the client, payments begin
  • Variable – as the investment ebbs and flows, so does the amount of the payment
  • Fixed – the same amount of payments every time

Volatile Market

Again, the word volatile comes from Latin origins but an interesting fact is that its Middle English definition meant “a creature that flies.” What a great picture of how this word reflects what happens to investments during a volatile market. Today’s definition with regard to finance is that it’s a quick, unpredictable change and usually not for the best. Anyone who studies and follows the stock market knows that stocks and investments go up and down constantly. Sometimes the latest headline will affect the market, sometimes it’s other investors not riding out the tide of emotional trading. When you invest in the market, understanding its nature may help you not be tempted to pull out at the first sign of dropping stocks. Many people would rather have someone advising them through these moments when the creature takes flight and decides to dive. Trusting someone who is knowledgeable about the long term effects of a volatile market helps keep things in perspective.

You don’t have to be a financial wizard to have money to invest. You just have to educate yourself enough to know what to look for when you are seeking advice. Reviewing the reputation of investment advisers gives you a good picture of how to find one to guide you through all of your options and keep you from the pitfalls when investing for the long term.

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