Do I Need an Investment Advisor?

Do I Need an Investment Advisor?

While investing on your own, has it ever crossed your mind that you need an expert financial or investment advisor? If you’ve got substantial assets, you probably have felt the anxiety of risking your hard-earned money. You also have probably thought that you would make finer investing choices if you knew just a bit more.

This is when hiring a financial advisor sounds reasonable.

Self-Check: Do You Really Need It?

Self-evaluation is necessary in deciding whether to hire an investment advisor or not. Here are some questions that could help you to introspect:

  • Do you have enough knowledge regarding investments?
  • Do you engage yourself with financial topics and wealth management? How about researching certain assets?
  • Are you an expert in terms of using financial instruments? Do you have the luxury to monitor, evaluate, and make recurring changes to your portfolio?

If you answered yes on the above-mentioned questions, then maybe you do not need an investment advisor. However, even if you’re confident and positive with your financial competency, you could still be at risk of committing mistakes with your investments.

When the Right Moment Arrives

Financial experts or investment advisors say there is no special asset that pushes an investor to look for advice. Rather, it is more likely a specific event that urges the person to seek help from a financial advisor. For instance, when you’re hesitant in executing important trades in the market, or you need to construct a personalized financial plan which includes insurance, savings, and tax strategies.

Commonly, someone who has never managed or spent more than a few thousand dollars is eyeing at managing six figures or a bunch of accounts. If this happens to someone who is just about to retire, the decisions are more crucial for it is necessary to make the money last.

Searching for a Professional Investment Advisor

When you are ready to start searching for the best financial advisor, start by asking for referrals from colleagues, friends, family members, or professionals who appear to have managed their finances successfully.

After asking for referrals, kindly accept their recommendations. For example, a Certified Public Accountant (CPA) or a lawyer might recommend reputable referrals. Professional associations can sometimes provide help such as the Financial Planning Association (FPA) and the National Association of Personal Financial Advisors (NAPFA).

Tips for Finding a Financial Advisor

  • Thinking if an investment advisor is worth it? People who have financial advisors have better financial security, and research indicates that working with an advisor can result in added annual investment returns, up to 4%
  • Before you hire an investment advisor, it’s important to have a grasp of how much their services will cost. Often, financial advisors’ charges depend on the assets they will manage. However, there may be other commissions and fees. Kindly take note that advisors can either be fee-only or fee-based.

Settling Payments with Your Investment Advisor

The client should also consider how to pay the investment advisor. Select advisors charge an upfront commission for every deal or transaction. Others charge depending on the financial assets to be managed; some require hourly fees.

Financial advisors claim that their advice is imperative to your success. Furthermore, commission-dependent advisors obtain their income from their respective company which can influence their recommendations. So you have to study their plan for you as they might stir up your account by racking up transactions to gain more commissions.

The Sum and Substance

There are no shortcuts when looking for a great investment advisor. The decision about whether to look for advice can be crucial. If you choose to look for advice, carefully pick the best professional for the job, so you could have access to a better roadmap of having a finer financial plan. If you decide to do it alone, always remember that if you don’t succeed, you can always try again—or call an investment advisor.

About the author

Hi I'm Jeff Kiefer and this is my blog. I've been in the Internet Marketing industry for over ten years now, and I would like to share all my experience, insights and other fun stuff with you guys!

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