The role of a financial advisor is not just to guide/coach a client in taking the right financial decisions. More importantly, it is about guiding him/her to avoid the wrong ones. The power of doing nothing at times is so powerful. In the context of investing, this is crucial to understand for successful long term wealth creation. Legendary American investor, John Bogle aptly explained this in an old interview.
Jack Bogle was talking about “Buy & Hold” to some investment advisers, and one adviser complained, “I tell my investors to do this, and the next year, they ask what should they do, and I say, do nothing, and the third year, I say do nothing. The investor says, ‘Every year, you tell me to do nothing. What do I need you for?’ And I told them ‘You need me to keep you from doing anything.’”