Are you frustrated with the level of growth you experience when you attempt to invest on your own? Do you feel left out when your friends or coworkers talk about how much money they are making in the market while the value of your portfolio barely budges? If the answer is yes, it is probably a good time for you to take the next step in your investing journey and ditch DIY investing by finally hiring a professional. A good financial advisor can bring your portfolio to a higher level.
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 that 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 is not diverse enough to offer you very much stability. Even if it is diversified, there is a likelihood that it is still over-exposed to one economy, and should anything--such as inflation--affect the economy, your portfolio could suffer harshly due to the lack of global diversification. Diversifying out of one's domestic economy into foreign investments can add stability to a portfolio. In sticking to the old adage mentioned above, finding an asset manager specialized in foreign investments will allow you to stabilize your investment portfolio with quality investments that you may not be aware of. A good financial advisor will make sure that your investment strategy is well diversified to minimize down markets and will help to build a globalized portfolio rather than one over-exposed to a single economy.
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 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 each trade is silly as long as you can catch the majority of the trend.
7. Sleepless Nights
Investing on your own is stressful. If the market is up, you are worried about whether you should ride the wave as long as possible or take your profit now. But if the market is down, it is even worse. You are terrified your investments will never recover. Why do that to yourself? Do your due diligence, hire the best financial advisor you can, and rest easy.
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.
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