Individuals who are accustomed to making their own investment decisions in their 401(k) plans may not immediately recognize the value of a financial representative. But according to the consumer research experts at J.D Power and Associates, investors who use a financial representative are more satisfied with their investment performance than those who strike out on their own*. Why? Perhaps it’s because a financial representative brings a much-needed dose of experience and objectivity to the equation, providing overall investment guidance and a valuable second opinion when it really counts.
Like the doctor who helps family members maintain their physical well-being, a financial representative can become a trusted resource that helps a family improve its overall net worth and financial health. Representatives help set goals, establish target asset allocations and provide investment education. They can also help individuals and families gauge their needs for asset protection and acquire appropriate insurance coverage.
In most cases, as an investor’s portfolio grows so does his or her options for building additional wealth. For example, investors just starting out may be best served by choosing a few mutual funds that meet their target asset allocation. Once a portfolio begins to grow, however, an investor’s risk profile will typically shift a bit and he or she may want to consider different products designed to improve risk-adjusted returns. Financial representatives can help investors identify when they’ve reached that level and what products may best meet their needs.
Perhaps most important, a financial representative provides an objective point of view during times of uncertainty. When the market takes a prolonged downturn — as it inevitably will at some point over a long-term time horizon — emotions can influence the decisions of even the most savvy and confident self-directed investors, leading them to make rash and potentially harmful decisions. During times of financial challenge, representatives help investors:
One of a financial representative’s primary objectives is to build loyalty among his or her client base. And how is loyalty achieved? Through a dedicated commitment to helping clients pursue success. The best representatives’ help their clients achieve their goals and often become trusted family resources on par with a doctor or attorney. Some even become lifelong friends and allies.
Before heading down the path of self-directed investing, be sure to fully evaluate the potential benefits of adding a qualified financial professional to your team of personal representatives.
The Surgeon General ranks economic hardships as among the most common psychological stressors in adult life. A financial representative can be a confidant, counselor and voice of reason during challenging times.**
*Source: J.D. Power and Associates, 2007 Full Service Investor Satisfaction Study, July 24, 2007
**Source: Office of the Surgeon General, “Mental Health: A Report of the Surgeon General,” 1999
A fund’s investment objectives, risk, charges and expenses should be considered carefully before investing. The prospectus includes this and other important information about the fund. To obtain a prospectus, call your financial professional, John Hancock Investments at 1-800-255-5291 or visit our web site at www.jhinvestments.com. Please read the prospectus carefully before investing or sending money.
This material does not constitute tax, legal or accounting advice and neither John Hancock nor any of its agents, employees or registered representatives are in the business of offering such advice. It was not intended or written for use and cannot be used by any taxpayer for the purpose of avoiding any IRS penalty. It was written to support the marketing of the transactions or topics it addresses. Anyone interested in these transactions or topics should seek advice based on his or her particular circumstances from independent professional advisors.
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