### Empower: An Opportunity for Complimentary Financial Consultations
For those possessing over $250,000 in investable assets, Empower is presenting a remarkable opportunity with complimentary financial consultations available until October 31, 2024. Engaging in merely two video sessions with an Empower financial expert not only enables you to acquire insights into managing your finances but also rewards you with a free $100 Visa gift card—an appealing incentive with no obligation to continue their services afterward.
I often wish I had access to such invaluable resources when beginning my investment journey. Here, I will share my experiences, challenges, and the lessons I have learned throughout my financial journey, and how a consultation with a financial professional set me on a more fruitful investing path.
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### The Beginning of an Investment Journey
My investment journey kicked off in 1995 when I established an Ameritrade account at the age of 18, guided by my father. A year earlier, he had introduced me to the world of stocks over breakfast, explaining the ticker symbols I spotted in the newspaper. It was an eye-opener, igniting a fascination with the stock market that led me to invest my first $500, primarily saved from my part-time job at McDonald’s.
Regrettably, my initial venture into investing quickly led to financial chaos. My enthusiasm turned into a reckless obsession with day trading. Within six months, I found my portfolio significantly diminished—realizing too late that trading required knowledge, strategy, and emotional discipline that I simply did not have. I often think about how helpful it would have been to speak with a financial advisor during that challenging period.
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### The Emergence of the Stock Market Junkie
Despite the hurdles, I persisted in my quest for market engagement. My addiction to stock trading escalated, fueled by my stint working on the International Equities desk at Goldman Sachs. Immersed in an environment buzzing with daily trading activity only intensified my obsession, akin to a dieter working in a pastry shop.
Even after moving to Credit Suisse, my connection to the stock market proved detrimental. It became clear that without proper risk management strategies, my fervor for trading could adversely affect not only my finances but my career as well.
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### The Pivotal Moment
By early 2013, when I reached out to Empower, the company was still operating as Personal Capital. I sought their guidance during a significant life change—being a 35-year-old unemployed individual dealing with a portfolio that had taken a hit from the effects of the global financial crisis of 2008-2009.
During my meeting with Patrick, one of their financial experts, I was reminded of the vital distinction between long-term investing and short-term trading. With a blend of empathy and knowledge, he illuminated tax-loss harvesting strategies and fostered a newfound perspective on risk management.
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### The Blind Spot Identified by My Advisor
One of the most eye-opening realizations during our consultation was my excessively high allocation to cash. With 52% of my portfolio lying dormant, I was effectively forfeiting potential gains in an upward-trending market. While my investments in CDs were relatively secure, they offered little in the way of long-term growth, particularly for someone my age.
Patrick’s insights inspired me to reassess my financial strategies, providing the motivation I needed to regain confidence in the markets.
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### Summoning the Courage to Invest
In the midst of the anxiety that had long hindered my decision-making—the aftermath of a significant market downturn—Patrick reminded me of my youth. He encouraged me to seize opportunities rather than hold funds defensively. Heeding his counsel, I invested substantial portions of my cash, which ultimately resulted in impressive growth over the years.
In mid-2013, I allocated $150,000 to the S&P 500, which has since more than quadrupled in value. Additionally, in early 2014, I invested another $100,000 in real estate, leading to noteworthy asset appreciation—a choice influenced by both market conditions and prudent advice from my financial consultant.
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### Who Should Seek a Financial Advisor
Thinking about consulting a financial advisor? Here are circumstances that might warrant a discussion:
1. **Significant Life Changes**: Events such as marriage, home purchasing, or parenthood can alter your financial landscape.
2. **Impending Retirement**: Shifting from saving to income generation necessitates thorough planning.
3. **Complicated Financial Scenarios**: Having multiple income streams, businesses, or extensive assets can complicate financial matters.
4. **Limited Time or Expertise**: If managing finances feels daunting or outside your expertise, a professional can provide assistance.
5. **Encountering Financial Difficulties**: An expert can assist in developing strategies to improve your financial situation.
6. **Future Planning**: For long-term objectives like education or retirement, expert advice is crucial.
7. **Seeking a Second Opinion**: A fresh perspective may uncover missed opportunities or insights.