Working in the business as an independent financial advisor has many rewards. These include the fulfillment of helping clients, the freedom to practice in the manner you deem most client friendly and, yes, it pays well, too.
But there are also times of stress. As an independent advisor, it may be more difficult to get away on vacation, especially if you feel a need to keep a close eye on things. I’m talking about a real vacation where you leave the laptop at home and shun the news. I’m not too sure this is even realistic.
During the 2008 crisis, my wife and I were sitting in line in our car, in New Orleans, waiting to board a cruise ship for a seven-day hiatus, when the bottom fell out of the stock market. While on the ship, I recall glancing at the TV from time to time, watching the Dow fall 800 points one day, and then rise 400 points the next. That was a time of great volatility and great stress.
Perhaps the advisor’s motto shoud be: Never take a vacation in October or November.
More recently, investors have been nervous over Great Britain’s exodus from the European Union. As is the case with most negatively perceived market events, there was an overreaction to the news. However, like every other overreaction, this one had a silver lining: It created a market dislocation, which is a buying opportunity for those inclined to act.