By Douglas Goldstein, CFP®

Don’t make financial decisions based on what you wish will happen. After all, you wouldn’t neglect your savings plan in favor of purchasing a lottery ticket on the eve of your retirement. Hoping for high returns or never-ending real-estate booms can overshadow the reality of today’s economy.

Instead, base your expectations on solid research. Before buying a product, ask yourself if it sounds reasonable. If something sounds too good to be true, chances are it’s a scam. I’m amazed at how often, post-Bernie Madoff, I’ve met with people who have told me that they gave a sum of money to a friend/relative/organization to invest, don’t receive monthly statements, and are unsure about how their money is faring. When I draw the comparison between their “safe” investment and the recent Ponzi scheme, I’m told, “But this is different – I’ve known the guy for the longest time.”

After you invest, make sure you review your monthly statements and stay abreast of your finances. Ignorance is not bliss. While you shouldn’t lose sleep over every market movement (after all, volatility is the natural state of the market), don’t file your statements without reading them. Financial firms like green (both money and trees); they wouldn’t send you mail if it wasn’t important. Legal requirements obligate the firms to send out reports for the investor’s benefit. Even if you’re invested for the long term, it behooves you to look at your trade confirmations and monthly statements carefully.

Everyone wishes that their investments would constantly increase in value. However, closing your eyes, blowing out the candle, and making a wish won’t help your bottom line as much as doing due diligence, proper diversification, and risk control. Turn to a financial adviser for help, but realize that at the end of the day, your financial adviser is just that – your adviser. Unless you’ve given him discretionary powers, the final decision of any investment is up to you. Make a well-educated decision, not a wish.

Douglas Goldstein, CFP®, is the director of Profile Investment Services. He is a licensed financial professional both in the U.S. and Israel. He offers securities through Portfolio Resources Group, Inc., Member FINRA, SIPC, MSRB, NFA and SIFMA. Accounts carried by National Financial Services LLC. Member NYSE/SIPC, a Fidelity Investments company. His book is available in bookstores, on the web, or can be ordered at: www.profile-financial.com (02) 624-2788 or (03) 524-0942.