Rebuilding Trust: Independent Advisor Offers Practical Tips to Improve Trust and Financial Health

    MCLEAN, VA, September 30, 2010 /24-7PressRelease/ -- Trust is a curious thing. Having faith in someone - trusting a person or an institution can be a bond that is stronger than steel. Witness a soldier's unflinching obedience to a commanding officer, or even a passenger's confidence in an airline pilot during flight. Individuals will often step into the void holding only a thread of trust.

But according to Gordon Bernhardt, president and founder of Bernhardt Wealth Management, trust is short-lived. "It takes years to build, but only seconds to destroy. And once gone, trust does not return easily or quickly," he opines. "Any kind of relationship without trust is in trouble, particularly a relationship with a financial advisor."

However, finding a trustworthy financial professional is essential, especially during the on-going economic turmoil facing today's investors. "If we've learned anything during the Great Recession it's that savings are precious. A professional guide on life's financial journey can be very reassuring - especially during times of uncertainty and stress," says Bernhardt.

Bernhardt suggests four practical tips to help build trust and financial health.

1) Find a financial advisor who tells the truth. Trust is nourished by truth. If something looks too good to be true, it probably is (think Bernard Madoff). "Find an advisor truly looking out for your best interests; someone willing to tell you what you need to hear, not just what you want to hear," says Bernhardt. "In today's environment, that may not always be good news."

2) Understand that full disclosure is a two-way street. A financial advisor who is sworn to act as a fiduciary means the advisor bears the legal obligation that requires them to act in the investor's best interest at all times. An advisor that makes commissions from selling financial products has an inherent conflict of interest. "Investors need to be confident that their financial advisor has no hidden interests," says Bernhardt. "But it is equally important that you share with your advisor information about all your financial assets and liabilities, dreams and concerns, even if the truth isn't comfortable to talk about."

3) Accept that there will be bumps in the road. Bumps are normal, so be reasonable. "Say you work honestly and diligently with your professional financial advisor, confident they have your best interests at heart," suggests Bernhardt. "You develop a plan, invest in the market and then, oh no, it goes down. Just because the market drops shortly after you decide to get in, doesn't mean the plan is bad. Be rational. Keep your eyes on long-term goals and ignore daily market volatility."

4) Avoid emotional decision-making. Financial decisions can be taxing even in good times. But today's financial stressors can impact critical thinking ability by triggering the brain's most primal flight or fight response. "The same instinctive reactions that enabled man to survive in the jungle create trouble in the financial realm," explains Bernhardt. "Rather than make what you perceive as a quick fix portfolio move, lengthen your perspective by reviewing your investment process and long-term goals. Rather than react to sensational headlines, run some real numbers with your advisor to determine where you stand. Anything you can do to help you feel more in control as the market gyrates out of control will enhance your ability to make sound decisions."

For more tips on personal finance, visit [email protected] or read Bernhardt's blog at http://gordon-bernhardt.blogspot.com.

****To hear an interview with Gordon Bernhardt about building trust, click here http://www.audioacrobat.com/play/Wy2GNgXf

About Bernhardt Wealth Management
Gordon J. Bernhardt, CPA, PFS, CFP , AIF of Bernhardt Wealth Management in McLean, Virginia provides financial planning and wealth management services to affluent individuals, families and business-owners throughout the Washington, DC area. He is a Certified Public Accountant and Personal Financial Specialist. Committed to a higher fiduciary standard of excellence, he has earned the professional designations of CERTIFIED FINANCIAL PLANNERTM professional and Accredited Investment Fiduciary . Gordon received his degree in commerce from the University of Virginia. Since establishing his firm in 1994, he has been focused on providing high-quality service and independent financial advice in order to help his clients make smart decisions about their money. For more information, visit www.bernhardtwealth.com

Disclosure Statement: Past results are not indicative of future results. Bernhardt Wealth Management, Inc. (BWM) is a registered investment advisor with the Securities & Exchange Commission. BWM may only transact business or render personalized investment advice in those states and international jurisdictions where we are registered/filed notice or otherwise excluded or exempted from registration requirements. Any communications with prospective clients residing in states or international jurisdictions where BWM and its advisory affiliates are not registered or licensed shall be limited so as not to trigger registration or licensing requirements.

Note: Qualified investors are individuals or families with $1 million or more to invest.

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