It’s important to understand why it’s dangerous to follow cookie-cutter solutions with regards to financial investments. This comes as a response to the common occurrence among many financial advisors who conveniently suggest existing and readily available solutions to their clients. For anyone to appreciate the depth of the problem, one must first understand that investors in retirement plans are somewhat like sitting ducks standing right in the sights of some financial advisors.
Many of these advisors are more interested in closing sales and reaching their quotas than helping their clients find the exact solution to have the kind of retirement lifestyle they want. The reason for this is that it takes more effort to get into the details of a particular customer’s wants and needs, and it is truly a lot easier just to pull out a solution that may well have worked for other investors in the past.
The truth is that investors who are looking for options often come to financial advisors with zero knowledge of what their options are, how markets behave, and how real the challenges are when it comes to actual retirement. A bad financial advisor can make you buy into a simplistic investment model, which does not suit you in the long run.
However, good financial advisors take the time and the effort to talk to you and find out about your plans and clarify certain things for you so that you could build a picture of a future that suits you. There is such a thing as a retirement plan that fits you like a glove, which sure beats any one-size-fits-all offering.