If you are like most professionals, you’ve most likely worked for more than one employer during the course of your career. While “job-hopping” was once a frowned-upon activity, these days, it is neither uncommon nor the subject of much stigma to be employed by many different firms throughout your working years.
Under the new rule as written, firms have until January of 2018 to comply. If that sounds like a long time, maybe that’s because there’s a lot of catching up to be done out there. After all, not every financial services business was built from the ground up to act in the best interest of its clients above all else.
Many people simply don’t realize that there really are financial professionals whose singular focus is helping their clients, full stop. In fact, we often get asked exactly what the word “fiduciary” means, or hear from people who are under the impression that it is nothing more than a synonym of the word “financial.” Not so!
Although many financial choices share some characteristics, the biggest differentiator among all of them isn’t a regulation or an asset class or an interest rate. It’s you – the investor. That’s why a comprehensive financial plan should be designed to consider a wide variety of financial choices in support of an individual’s goals, and must be created with a keen eye to the risk tolerance level of the investor.
While Amazon stock has seen generous appreciation, the Amazonians interviewed by the Times are describing a classic concentrated position. A concentrated position occurs when an individual’s wealth is largely tied up in holdings of a single stock or other security type. Regardless of the performance of your employer and their stock, having a concentrated position is not a recommended strategy for building and maintaining long-term wealth.