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Do I Need a Financial Advisor

Do You Need a Financial Advisor?

Why can’t you do your own investing? Well, you can. However, many people do find success employing a professional. Consider this story. Let’s say you make two different investments, each for $1,000,000. You are a long-term investor so you know not to get worked up with fluctuations. Let’s say 1 year later, your one investment (A) is now worth $2,000,000 and your other investment (B) is worth $500,000. You have reached your maximum pain point with B and decide to sell and take the money and buy more A. I believe this is also what most people would do.

My story is of course made up and there are no further details to judge your action. However, most people don’t concern themselves with more details than the historic gain or loss anyway. Let’s now examine the (arguably) most important rule in investing. BUY LOW, SELL HIGH.

By selling B and buying A an investor is actually doing the opposite. Sell low and buy high is not a good practice to follow. When you buy high, you limit your upside and expose yourself to exaggerated downside. The opposite is true when you sell low. When an investment is low, you typically limit downside and potentially exaggerate upside. Doing the opposite will take its toll in the long term.

I have included Buy Low, Sell High in presentations for decades. I felt so strongly about this “#1 RULE” that I hired a lawyer and had it trademarked. To find out more about how you can benefit from our seasoned direction please contact us by email or phone.

The opinions expressed within this article/communication are those of the Financial Advisor and are not necessarily those of Keybase Financial Group Inc. Any data provided is for illustration purposes only. Clients and prospective clients should always read a product prospectus and fully understand all of the risks associated with the product before purchasing. Any information relating to the discussion of taxation issues is considered to be only general in nature. Clients should seek a qualified tax professional to discuss their specific tax requirements. Keybase Financial Group Inc. is a member of the MFDA and is a member of the MFDA IPC.