While investors have quicker access to more information than ever today, no one can completely discount the need for a financial advisor. You may be able to buy or sell investments at a low cost than before but you are also faced with the possible complexity too many choices may present.
Some investors who think they can do it on their own end up paying too much in investment fees. Others end up sabotaging their investment success because they go after the wrong investment goals. But then again, this is not saying that a financial advisor is imperative for investment success. There are just cases when enlisting the help of an expert can do wonders for your investment plans. Below are some things to consider if you’re thinking of whether or not to seek a financial advisor’s help.
When you don’t know how much you pay for your investments then it might be best to seek expert advice as soon as you can. If you’ve ever said or heard other investors claim that they don’t pay for their investments, you’re in for a bad surprise. Because no, you actually pay for your investments. In fact, you may even be paying more than what you should. You pay not only for the cost of the investment but also related fees like administration and sometimes marketing expenses.
If you’re constantly receiving tax refunds every year, a good financial advisor can help. Receiving refunds from your tax may be something you look forward to every year but this is actually not a good sign of financial planning in general. This is because the government does not pay people interest for these refunds. Rather than receive your money back every year, they are better off sitting in your savings account or an investment medium that can earn you a healthy amount of profit.
If you were around that time when the market crashed in 2000 and 2008, you probably now understand that crises are inevitable. The market is going to go through bubbles from time to time. You can neither predict it nor control it. The only thing you can do is expect the best but prepare for the worst. In other words, you need a plan that will help your investment portfolio weather possible down markets. If you have no clue how to do it, a good financial advisor can actually help. Just make sure you look for one who is more concerned about your investment more than what you will pay them.
Amount of Savings
If you’re a few years away from retirement and you worry that your savings will not be enough to cater to your lifestyle, you may want to seek professional help immediately. When it comes to retirement, you cannot take chances. It’s best to find a certified financial planner to help develop a sound plan so you’ll have sufficient savings by the time you’re ready to retire. Rather than you spending time on figuring things out, a good financial advisor will make it a whole lot easier for you to achieve your savings goals.
If you’re the breadwinner of the family, having a survivor plan set up is imperative. In the event that something unexpected happens to you, your survivors need not worry about anything because you got them covered. Now if you don’t have any form of survivor plan just yet, it’s time to do something about it. Working with a financial advisor can certainly help with matters such as survivor plans, wills and trusts.