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of the law trumps everything. No profit is so big or potential so compelling to justify even bending tax law or SEC regs. The last place you want to be is in court (or jail) for having followed bad advice without a thorough consideration of the legalities first.
2. Next comes financial risk. You generally want to accept enough risk to allow for a tolerable loss should things go awry (because when that risk pays off, the profit is considerably higher than otherwise). But you also want risk to be measured and balanced enough so that you can recover from any reversal. If that isn't in your FP's calculations on your behalf, go elsewhere until you find someone who can do it.

3. Finally, there is common sense: and this is where your judgment may trump the FP's. Take into account your age, your employment circumstances, family considerations, health, and any other aspects of your life situation that are unique to your portfolio planning, and talk them through with the FP from a variety of angles, going over each scenario and its possibilities. If he's a real pro, he'll show the patience and insight necessary to follow you through this journey. Analysis and statistical computation are all very well, but sometimes final decisions that will affect your future come down to the common sense conclusions that are led by the communication and coordination of heart and brain, mind and body-the balance between the numbers and the nose.

Learn more about this author, Brian Donohue.
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