When it comes to your investments I think there are five critical questions that you absolutely must know the answer to:
1. What is the best asset allocation for you right now?
2. How have your investments performed in the past?
3. How much are you paying in fees, directly and indirectly?
4. How much do you need to have in retirement savings in order to live the way you want to?
5. What’s the best way to organize and manage your investments so you stay on track and avoid mistakes?
If you can’t answer these questions, then I believe you could benefit greatly from working with a professional adviser, planner, or coach. Unfortunately, many people who already have a traditional adviser still can’t answer these questions.
Good financial advice is extremely valuable. But bad financial advice is worse than no advice. Some people may choose to answer these five questions through self-education. For the vast majority of people, however, working with an independent, fee-only investment coach is the most cost-effective way to gain this vital financial self-awareness.