U.S. households generally agree they need a financial plan to achieve long-term success and security. However, too many households—including those with engineers and scientists—hold beliefs about financial planners that make them hesitant to seek out or work with a qualified financial planner.
Here are eight truths to dispel the myths about “real” financial planners.
Myth 1: Financial planners are the same as stockbrokers, insurance agents and other financial salespeople.
Former Fed Chief Alan Greenspan coined the phrase “Irrational Exuberance” in 1996, during the dot-com craze of the 1990s. Many interpreted the phrase as his warning that the market was getting overvalued or overheated.
Since the dot-com bubble imploded in 2000, we’ve heard the phrase whenever someone perceives any kind of speculative frenzy in the stocks, housing, commodities or some other asset class or area of the economy. For many, irrational exuberance means we’re in bubble territory.
Just like many food companies are now advertising their products as gluten free, mutual funds companies are also marketing smart.
They understand that it is not in their best interest to show poor-performing mutual funds. Have you ever seen an ad for a mutual fund that lost 40%, 20% or even 5%?
Life is full of uncertainty. We as humans crave certainty, but life doesn’t offer it to us.
Over the past decade, I’ve heard lots of concerns about the economy and stock market. And, we’ve been constantly reminded that what lies ahead is uncertain.
The headlines are filled with "Market Falls on …Recession Concerns …Unemployment Report …Gridlock in the Capital.” “The Markets Rally on … Jobs Report …Earnings Surprise … Fed Rate Cut.” Take your pick. The possibilities are endless.
The continued annual rise of the Dow Jones Industrial Average, S&P 500 Index and NASDAQ highlights the dynamic nature of the U.S. economy. The U.S. market goes from near collapse in 2008 to record highs in 2015.
People are in disbelief about the ascent of the stock market. And, this leads us to the key question: Are we in bubble territory?
Our Financial Self-evaluation Tool helps you identify your financial blindspots and increase your financial power.
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