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It's not up to clients to protect themselves from irrationality: Advisor

It's not up to clients to protect themselves from irrationality: Advisor

Finance
Recent stock market swings in and out of correction territory despite overall good economic news have reminded investors that such wild volatility is always a possibility. While experienced financial professionals generally take such developments in stride, how can their clients protect themselves from their own emotional reactions?The best way to avoid irrational decisions as an investor is to turn off the financial news, said certified financial planner Rick Waechter, founder of Old Peak Finance."Investing requires a long-term view," he said. "The news is by definition short-term, and there is no way to reconcile them," he said.Waechter said that, at most, investors should look at their accounts monthly — and preferably less often. "Every six to 12 months, consider rebalancing ... to get
Advisors are offering ‘fatally flawed’ advice to clients, advisor says

Advisors are offering ‘fatally flawed’ advice to clients, advisor says

Finance
If you're a financial advisor who is still giving clients advice based on today's life expectancy and goals, chances are you need to go back to the drawing board."Most of the advice you are offering is fatally flawed, and I would even argue criminally negligent," Ric Edelman, founder and executive chairman of Edelman Financial Services, told attendees at the Technology Tools for Today Advisor Conference in Fort Lauderdale, Florida, on Wednesday."If you continue to give the advice to your clients that you are currently giving them, you will soon be out of business," Edelman said.Rapid technology advances coupled with changing life plans will fundamentally alter the way we live. And most of the financial plans that advisors come up with for clients are stuck on outdated expectations, said Ed...