“Team work makes the dream work.”  What the Justice League can teach you about investing.

 

I grew up on cartoons, so it will come as no surprise that the Justice League was my favorite cast of characters growing up.  I spent countless days of my youth watching Superman, Batman, and Wonder Woman.  As an adult, I can see the valuable lessons that they taught me about teamwork.  Someone once told me that, “team work makes the dream work.”  I’m not sure where I heard this adage, but it stuck with me.  I am a TEAM player and I believe that the power of WE is preferable to one person going it alone.  Investing is no different.  You need a great TEAM!

Education:

Investing is not an easy exercise and although sites like E*Trade, Sharebuilder and Scottrade have sprung up over the past 20 years, investing is still an activity that is better done with a sound team.  Who’s on first?  Remember the skit from Abbott and Costello where Costello would become frustrated by Abbott’s response that Who was on First?  Well, investing is like a game, and you need to know WHO IS ON FIRST so this lesson is to help you build your investment team.

On any team, it functions best when you have the strongest players at each position.  In the game of investing, your players would be called financial advisors or financial planners.  A financial advisor is a person who provides financial advice or guidance to customers for compensation. Financial advisors can provide many different services, such as investment management, income tax preparation and estate planning. Think of them as the investment coach who teaches you the basics.

1.       Who are you investing for?

2.       What to invest in?

3.       When to invest?

4.       Where to invest?

5.       Why to invest?

Individually, each member of the Justice League was powerful.  However, as a TEAM, no opponent defeated them.  You need a strong team to help you create and accomplish your investment goals.  There is no shortage of financial advisors available to you.  Firms like Merrill Lynch, Morgan Stanley, Ameriprise Financial, Raymond James, Edward Jones and many more will help you be a better investor and reach your investment goals.  Don’t be intimidated by your perception of financial advisors.  Sure, some firms require that you have a large amount of money to invest before they will accept you as a client.  However, there are firms like Edward Jones that accept clients with as little as $100 to open an account.

Other types of financial advisors include Registered Financial Advisor, Chartered Financial Consultant (ChFC), Certified Financial Planners (CFP) and Personal Financial Specialist (PFS).

Don’t go it alone – get a strong TEAM!

 

 

Resources: 

Financial Planning Association – Online community of financial planners.

Ameriprise Financial (www.amerirpise.com) –  financial advisory firm that offers financial planning advice and retirement investment advice.

Edward Jones (www.edwardjones.com) – financial advisors that offer a personal approach to investing and retirement planning to help you reach your long-term financial goals.

Important terms from this lesson:

Term	Definition
Financial Advisor	One who provides financial advice or guidance to customers for compensation.  Financial advisors can provide many different services, such as investment management, income tax preparation and estate planning.
Registered Financial Advisor	Investment advisor that receive compensation for giving advice on investing in securities such as stocks, bonds, mutual funds, or exchange traded funds.
Chartered Financial Consultant (ChFC)	Chartered Financial Consultant designations are granted by The American College upon completion of seven required courses and two elective courses. Those who earn the designation are understood to be knowledgeable in financial matters and to have the ability to provide sound advice.
Certified Financial Planner (CFP)	The Certified Financial Planner (CFP) designation is a professional certification for financial planner conferred by the Certified Financial Planner Board of Standard (CFP Board). CFPs have met the education, examination, experience and ethics requirement to be certified.
Personal Financial Specialist (PFS)	A specialty credential awarded by the American Institute of Certified Public Accountants (AICPA) to CPAs who specialize in helping individuals plan all aspects of their wealth.

 Action Step:        Find a financial advisor!

Click the link to read the white paper, Selecting a Financial Advisor