Who should you trust?

By Martin Spears, Financial Advisor, RJFS and Managing Partner Operations, Southern Springs Capital Group

Skepticism seems to be at an all-time high these days. It often feels that everywhere we look, we are given a reason to second guess the data or mistrust the messenger. Everyone’s microphone is turned up loud, and that makes it hard to decipher the amateurs from the professionals.

This lack of trust leads many to feel they should navigate situations, even very complex ones, on their own. Even worse, they chose to take advice and encouragement from their favorite news anchor, politician, or social media follow.

There are a lot of professionals out there across a wide range of occupations who are there solely to help you avoid costly mistakes, and you should seek their counsel when you need help, lack clarity on a path forward, or would just like an experienced opinion. This is sound advice for all aspects of your life, not just your financial holdings.

The most successful clients that I encounter generally understand this concept. They are able and willing to acknowledge what they do not know. They realize that their expertise lies in other areas and they are comfortable with that reality. They are happy to surround themselves with a team of advisors to help in the areas where they lack expertise, specifically financial advisors, CPAs, or attorneys. They are very aware of the pitfalls of making decisions on their own without consulting a more knowledgeable specialist.

Specific to financial advice, I see a variety of themes in the recommendations of the messengers you can find on your favorite news channel or social media platform. Keep an eye out and recognize when you are likely not seeing or hearing sound advice.

“Fads are the kiss of death. When the fad goes away, you go with it.”

~ Conway Twittey.

Make sure the investment decisions that you are making are best for you and your situation, not just mirroring what everyone else is doing. It is perfectly acceptable to be on a social media or speaking with friends and realize that you are not invested in the latest market craze. As a matter of fact, that is probably a good thing! If you and your financial advisor have put together a solid plan for helping you to achieve your long-term goals, it probably won’t look or sound exactly like what everyone else is doing.

“Simplicity is the ultimate sophistication.”

~ Leonardo da Vinci.

Investing does not have to be complicated. Many people feel that the older they get, the larger their family grows, or the more successful they become, the more complicated their financial situation should be. This is just not true. Complicated solutions are usually not the best approach to long-term financial growth, but they do make the financial guy you follow on twitter sound smart.

“Prediction is difficult, particularly when it involves the future.”

~ Mark Twain.

If the last year has taught us anything, it would be that the future is very hard to predict. Many investors that I encounter seem to be ready with their prediction for what is going to happen with the stock market or with interest rates.

Often times, I hear phrases like “the market must go down because it has been up so much” or “interest rates must go up because they have been down for so long.” Be careful of these predictions. Will those specific shifts happen? Perhaps, but it is almost impossible to predict the timing and magnitude with any accuracy. As former Fed Chairman Alan Greenspan quipped in 2007, “Macroeconomists have successfully predicted nine of the last five recessions.”

Your financial situation is unique to you, but that doesn’t mean you are the only one who can manage it. But who should you trust? When you seek advice, talking heads and twitter accounts have turned up the volume to promote themselves. A financial advisor, vetted and selected by you, is looking out for you.

With baseball season upon us, remember the words of Babe Ruth. “Don’t be afraid to take advice. There is always something new to learn.”

For more information on Southern Springs Capital Group, visit www.southernspringscapital.com. Our offices are located at 2555 Meridian Boulevard in Franklin. We can be reached at 615-905-4819.

Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

Securities offered through Raymond James Financial Services, Inc., member FINRA / SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Southern Springs Capital Group is not a registered broker/dealer, and is independent of Raymond James Financial Services.