Financial Advisor Or An Investment Advisor?

All of the investors of the world have supplied the capital that corporate America has had to fund their expansion within the previous two hundred years in exchange for the right to share that growth and profits before only afforded associates. The buyer management relationship has worked out so nicely that a complete industry evolved to meet the increasing number of investors desires for information and counsel to help investors in making sound investment choices. The Financial Services Industry, that initially was just accessible to the very wealthy, has increased over the years to function as supplier of investment information on to about 40 percent of American households.

Most of the financial consultants are connected with big investment companies that connect the company’s collective expertise, information and experience to their own cadre of adviser to pass to institutional and individual investors. In theory that this gave those investors related to large businesses possible for yields that couldn’t be achieved by themselves or with an institution with independent or smaller adviser.

So the Financial Advisor that informed me and you was really taking the companies “specialist knowledge”, adapting it into our sanitation and telling us where we ought to be investing our economies to attain our financial goals. We were advised that because 1900 if you remained invested in a well diversified portfolio you’d not have less than once you began in any ten year period.

So what happened within the last ten years? The majority of us dropped a sizable portion of our savings from the 2001 Tech Bubble simply to lose over our economies from the Sub Prime Bubble. The $100,000 that we needed in January 2001 shrank to $60,000 from October 2003 subsequently climbed to $80,000 at July 2007 and is currently worth $40,000 today. We are eight years nearer to retirement and wondering just how we are going to live if we do get to retire.