By Paul Bullock

Despite what most people think, a financial plan is not a one-and-done deal. As you move through life and experience changes in your situation and priorities, your financial strategies need to adapt as well. That’s why we see a financial plan as a living, breathing document that requires ongoing planning, evaluation, and recommendations to ensure that you stay on track to achieve your goals. 

At Wellington Investment Advisors, we believe there’s more to financial planning than beating the market or getting a better return; it’s about partnering with someone who can help you pursue your goals and provide honest, caring, and tailored advice—not just when times are good, but when they’re tough, as well. That being said, we’re here to set the record straight about three most popular financial planning myths. 

Myth #1. Mutual funds are less risky than stocks. 

The reality is that all investment vehicles carry a certain degree of risk. Mutual funds and stocks are both subject to the volatility of the market. That’s why diversifying your portfolio with a healthy mix of stocks, bonds, and other investments helps manage the risk. When deciding which investments to take on, it’s important to consider your goals for the future, your family, and even, perhaps, your business. A financial advisor can help you figure out your timeline and risk tolerance so you can properly invest your money. 

Myth #2. The best way to avoid losses is to avoid the stock market.

Many people believe that keeping their money stored away in a standard savings account is the best way to protect their money. But, what they’re not taking into consideration is inflation. Cash is guaranteed to lose spending power over time due to inflation. The good news is, you can give your savings a chance to grow by investing your funds. 

But what if you’re scared of losing your money in the stock market? A large component of financial planning with a trusted advisor is meeting your goals for the future in a way that makes you feel comfortable and confident. The market is full of unexpected dips and potential crises, but the right financial advisor will guide you through even the most difficult financial situations. 

Some important questions an advisor can answer include:

• Do I stay the course until the market stabilizes? 
• Should I buy more of an investment for portfolio optimization? 
• Should I sell my shares of a stock that is plummeting? 
• How can I protect my investments and financial well-being? 

By consulting with a fiduciary advisor, you can be confident that you’re receiving advice that’s right for you. And you can also avoid making hasty decisions out of fear or uncertainty. 

Myth #3. If the market is down, you should get out and cut your losses.

You can suffer several different types of losses when you’re investing in the stock market; the trick is to learn how to deal with each of them. By consulting with a financial advisor, you can find ways to navigate your risk and tax implications so you can align your strategy with your overall financial plan. 

Remember: It’s normal to feel uncertain about the market—especially if you’re new to investing. But a trusted advisor can help educate you and make you feel comfortable about making smart financial decisions. 

We’re Here to Help 

A great financial plan is created with a strategy that works for you and guidance from the right professional. My most loyal client has been with me for about 28 years. I’ve helped him and his family stay the course and navigate through life’s challenges to meet their financial goals. This is what I love most about my job. 

I am always open to meeting new people and seeing how I may be able to help. Whether you’ve already started planning for the future or have yet to put strategies in place, I encourage you to schedule a no-obligation introductory meeting or reach out to me at paul@wellingtoninvestmentadvisors.com or (812) 333-0874 to get started. Be sure to check out what some of our clients say about working with our team at Wellington Investment Advisors to learn more about how we can help you. 

About Paul

Paul Bullock is CEO of Wellington Investment Advisors, an independent, boutique fiduciary firm serving pre-retirees and university faculty across Indiana. With over 32 years of financial experience, Paul is committed to building long-term relationships through thoughtful, personalized investment advice and guidance. He focuses on a disciplined tactical asset allocation approach to money management through a strong understanding of economic and market conditions and strives to build trust with clients by providing sound guidance. Paul understands the hard work his clients have put in to arrive at where they are today and wants to see them succeed in their goals for the future. Paul graduated from the University of Texas with an MBA, as well as a bachelor’s degree in finance, and has been dedicated to assisting clients with their financial needs ever since. When he is not working, Paul enjoys time with his family and is also an avid equestrian polo player who helps raise money for over 18 different charities through his playing. To learn more about Paul, connect with him on LinkedIn.