Are you frustrated and confused as you try to manage your own investments, understand social security, estate planning and other retirement-related topics? Do you feel left out when your friends or coworkers talk about how their they are able to relax and enjoy their lives while you are up at night worrying about the investment decisions you have made? If the answer is yes, it is probably a good time for you to take the next step in investing journey and ditch DIY investing by finally hiring a professional. You may have been able to handle things when you were younger and it was simply a matter of adding to your portfolio each time you got paid. But things are different as you approach and enter into retirement. A good financial advisor can provide structure, education and peace of mind which allows you to focus on things that are more important to you and your family.
7 Real Reasons Why You Need to Hire a Financial Advisor
A financial advisor can help you avoid the many pitfalls of DIY investing, including:
1. Removing the Urge to Trade on Emotions
You've probably become more than a little emotional when you think about your money. And when it comes to investing, listening to these emotions more often than not can end disastrously. It takes a particular type of person to be able to put aside feelings and make the right decision every time. A financial advisor is free of any emotional attachments and is able to choose whatever action is best for your wallet.
2. Failing to Employ a Disciplined Process
Hunches and tips rarely work out in the long run, but choosing and sticking to a proven investment strategy does. Your financial advisor has years of investment experience to use as a guide, and will never risk your money over a gut feeling or a rumor.
3. Avoiding Rebalancing a Portfolio
Selling a well-performing asset to buy another financial instrument which is underperforming is crazy, right? Well, not if you know what you are doing. Most DIY investors are reluctant to make such seemingly counter-productive moves, but the pros know when it makes sense to take the risk.
4. Putting All Your Eggs in One Basket
The old adage, ”Only invest in what you know," is good advice, but if you don't have experience with several types of financial assets, your portfolio probably isn't diverse enough to offer you very much stability. A good financial advisor will make sure that your investment strategy is well diversified to minimize down markets.
5. Selling When the Market Gets Scary
The market is down for the second week in a row, and the value of your portfolio is dropping like a stone. Are you going to have the guts to stick to with your investment system? Most DIY investors don't and wind up not only selling their investments for a loss but missing out on the very lucrative rebound. Financial advisors don't get scared by adverse market conditions, so, their clients are in the market to take advantage of the rebound.
6. Trying to Call Tops and Bottoms
You have heard it a thousand times, "Buy low, sell high," but attempting to call the tops and bottoms of a volatile market can cause you to lose out on a lot of profit. A professional investor knows that being afraid to pull the trigger on a trade because the fear of getting every cent from a trade is silly as long as you can catch the majority of the trend.
7.Hire a life-long advocate
One of the biggest reasons clients come to Reed Financial Planning Services is that they want someone to understand them, their family, their needs and their long-term goals. They want a standing relationship with a professional who will advocate for their personal and financial well-being as they age. By engaging a financial adviser sooner rather than later, you can build that trust and relationship with them, outline your family dynamics, your goals and legacy plans so that when the day comes that you need help, your adviser has already developed a plan on how to address the challenge and take care of your family.
Why make investing harder than it has to be? Take your life back and build a stronger portfolio by speaking with a financial advisor today.
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.