Nobody wants to fork over their hard-earned money if they don’t have to. Paying someone to manage your investments is no different, especially when opening your own online brokerage account is exceedingly simple. But, there is a multitude of reasons why hiring a financial advisor is indeed one of the best investments you can make.
Expertise
It’s easy to figure out the basics of investing, but there’s so much more to it than that. Researching all the possible options and courses of action would be quite overwhelming while simultaneously juggling your career, family, and social life. Financial Advisors only have one job. They continually monitor the market and ever changing regulatory landscape in order to provide timely, relevant, and valuable advice to their clients. This allows them to react quickly and recommend appropriate investment strategies that protect your portfolio now and in the future.
Emotional Detachment
Most DIY investors make emotionally-driven decisions. They can be easily persuaded to place all of their wagers on one bet in hopes of sky-rocketing returns. Or worse, during times of volatility, they can let fear scare them from the market, panic selling their life savings in an instant. A seasoned financial advisor does not trade emotionally.
They trade with a cool head, guided by years of experience and up-to-date market research that bypasses the emotional traps and sensationalist headlines. Just like a doctor shouldn’t operate on a family member due to emotional attachment, an investor shouldn’t manage their money. They’re simply too emotionally attached and therefore behave irrationally.
Tax Planning
One of the most easily overlooked aspects of investing is tax planning. The tax code is voluminous, dry, and confusing (even downright daunting!). On top of the already monumental task of mastering the financial markets, how could you possibly incorporate tax planning strategies as a DIY investor?
Well, many financial planners are also experts in the tax arena. They can not only help you minimize taxes and maximize tax-free returns, but they can ensure you’ll avoid expensive mistakes or costly audits. The last thing you want is to have Uncle Sam on your back as the result of your novice tax planning!
Time
Lastly, one of the biggest advantages of working with a professional advisor is the time you will save. Imagine having the time to spend with family and friends, travel, do your hobbies, and simply enjoy life, knowing that your finances are squared-away with a trusted advisor. Let the professionals undertake the rigorous labor of reading charts, calculating indices, devising strategies, and comparing tax tables. In the end, hiring an advisor will pay for itself many times over and give you invaluable peace of mind.
Final Thoughts
We’ve all heard about (or maybe even know) that guy or gal who lost nearly every penny using a DIY approach to investing. Everyday non-professionals think they can outperform the pros while engaging in risky behaviors such as day trading, options trading, and currency speculation. But you cannot beat the pros. So, just like you don’t do your own dental work, perform your own surgeries, or fly your own plane (probably!), you shouldn’t worry yourself with an issue as major as investing. When it comes to your long-term financial stability and retirement, it is simply too important!
There’s no need to be plagued by uncertainty while making financial decisions. Make an appointment today for a consultation that will put you down the path to a stress-free financial future.
