Moments with Melody – September ’14

What are you leaving on the table?

Sometimes our generosity is planned.  Sometimes it isn’t…

The recently released 2014 Dalbar QAIB studies suggest that those who do their own investing underperform the S&P 500 Index by an average of 4.20%, per year, for the past 20 years.  That’s a lot of money an investor is potentially leaving on the table.  That’s being pretty generous!  Further, recent studies suggest using the services of a financial advisor can add an average of 3% in net returns to your portfolio.  Either way, 3 or 4 % can be a substantial number.  Of course, that amount is just an average.  Each investor’s risk tolerance and unique situation is the bottom line when you are evaluating your potential returns.

If you are someone who is investing on your own, I would encourage you to participate in a second opinion survey with a financial advisor.  Besides assisting you in the evaluation of your portfolio, an advisor can add other value – an overall financial plan, education planning, retirement planning, and estate planning among other things.  It’s important to evaluate where you stand at significant life junctures and an advisor can help.

Of course, the big thing on most people’s mind is preparing for retirement and assuring they have funds available   to maintain a comfortable lifestyle, and many people’s retirement assets are in 401(k)s.  More and more employers are making 401(k) guidance available and may allow separately managed accounts within their plan.  You should   explore if your employer allows this option.

So, while I do encourage you to be generous when you can, I want your generosity to be planned – not something   left behind by accident!  Remember the lessons from the book “The Richest Man in Babylon” and pay yourself first.

If you have questions or comments about this article, you may contact Melody Lowe at


Securities offered through Sigma Financial Corporation. Member FINRA/SIPC. Investment advisory services offered through Sigma Planning Corporation, a Registered Investment Advisor. Financial Partners, Inc. is an independent of SFC &SPC.