When most people think about increasing their financial wealth, the first thing that often pops into mind is having a savings account. However, there are many options that can be utilized to build personal wealth. Options include everything from investing in retirement accounts to buying shares in publicly trading companies. Those who desire to move their wealth creation plan from merely saving some money to lucratively investing it will find the assistance and expertise of a financial planner and advisor very useful. Equities are often an excellent place to put your money but you should always be aware of what is being done in the interest of shareholders.
Why You Should Hire A Financial Expert
Financial experts are trained in the field of financial services and can significantly help individuals increase their monetary gains. Anyone who hires a competent financial advisor will be able to draw on a wealth of knowledge that will help them sift through the noise of portfolio management. Starting, growing, and managing a financial portfolio will no longer seem overwhelming but will instead be an area of growth with the help of the right financial expert.
About Lance Fair Child: Financial Expert From Fai-Child & Associates
Lance Fair Child is one of the leading financial experts at Fair-Child and Associates. Over the course of his many years in the financial services field, Lance Fair Child has helped countless clients to save smartly, build their portfolios, and accumulate wealth. He has also been a vibrant voice within the financial services community, always advocating for changes that can help investors and shareholders.
The Benefits of Becoming A Shareholder
Of the many pieces of financial advice that Lance Fair Child doles out is the admonition to his clients to consider becoming shareholders in profitable entities. He asserts that becoming a shareholder in profitable, publicly trading companies, will allow individuals to maximize their earnings and subsequently their wealth-building potential. Some of the benefits to be had from being a shareholder include the following:
Admittedly, starting a share portfolio can seem intimidation. However, the rewards are worth it. One of the main benefits of being a shareholder is the potential to earn huge returns on the stock market. In addition to being able to ‘win big,’ is the ability to really exercise control over how you manage your losses as well as profit. As individuals learn to manage their risk potential, they will be able to minimize losses and make the experience of being a shareholder that less intimidating.
2) Receiving dividends
Owning shares in a company makes you part owner of the same. As such, another important benefit of becoming a shareholder in a company is being able to benefit from the company’s capital growth. As capital grows, shareholders will be able to receive dividends in amounts that reflect this growth.
3) Making your money work for you
Speaking still to the gains one can enjoy from being a shareholder, is the fact that one can make your money ‘work harder’ on your behalf. That is, as your shares continue to perform well in the market, you will being increasing your earnings and wealth from the profits earned. Best of all, you are able to do this without exchanging significant amounts of your time and energy as you would in the case of a traditional job.
Shareholder Voting: Having A Say In The Direction Of The Company
A little-understood (and often underutilized) part of being a shareholder is being able to attend annual general meetings and have a say (by way of voting and other channels) in the direction the company should take going forward. Shareholders can make their voices heard on issues ranging from products and services to industry operations. Unfortunately, far too many shareholders fail to make use of this right. Sometimes, this is on account of not being able to physically attend meetings due to location limitations and other factors. Thankfully there is a solution to the same as noted in recent changes in rules and regulations relating to proxy voting.
Proxy voting allows stakeholders to vote on issues discussed at or raised prior to or during annual general meetings (AGMs) of the company within which they have a stake. This development to allow proxy voting is one that is welcomed by Lance Fair Child. Proxy voting, he asserts, will help give shareholders who are unable to physically attend meetings their voice back.
In sharing his thoughts on proxy voting and the current changes, Lance Fair Child likens the importance of voting at shareholder meetings to voting for the next president in a general election. Knowing how important being able to vote and have a say on various issues is, Lance Fair Child argues that proxy votes should have the same weight as voting in person.
Additionally, when all factors are considered, allowing for votes by proxy will help save capital that would have otherwise been eaten up by shareholders having to travel long distances. This reality is particularly stark in large companies where shareholders exist in a variety of different locales across the country. For these and other reasons, proxy voting for shareholders is a change that is indeed welcomed and encouraged.