Hot Stock Recommendations

I have been asked why we don’t recommend “hot stocks” to buy or sell in our newsletter. 

We don’t because that would not serve you well – and here’s why. 

Buying stocks, bonds, or mutual funds is the one of the LAST decisions in a proper financial planning process.  More important questions to address first are:

Goals and Purpose – is the money being saved for retirement, college, or some other purpose?

Time Horizon – do you have enough time to endure a market downturn?

Risk Tolerance – what amount of investment risk are you comfortable with?

Asset Classes – will you use stocks, bonds, cash, etc?

Asset Mix – should you have more stocks than bonds?

Only after considering these questions is it appropriate to identify which investments are right for you.  Not only may one consider stocks, bonds, or mutual funds, but also insurance investments like annuities, real estate, or other opportunities.  For example some annuities contain a floor so that your principle is safe even when the market falls, however when the market rises you capture a part of the gain.  Most people wished they had this investment vehicle in their portfolios during last year's financial collapse.  Additionally, instead of purchasing another stock you may be better served by obtaining life, disability, or long-term care insurance to protect your family in the event of sickness or death.  These solutions are addressed with a solid and holistic financial plan.   

Recommending a hot stock in a newsletter without considering your goals, timeline, risk tolerance, and present asset mix does not serve you well.  It may generate additional brokerage commissions but does it increase your wealth?  I constantly see these hot stock newsletters – they are always exciting, but I have to pause and ask who is really being served?

Nearly eighty percent of those with a comprehensive financial plan feel well prepared for retirement, as compared to less than half of those with no professional support. Now is the time to prepare for your financial future.  Contact us today for independent and objective help in securing your financial future.