Investments, as we all know, are a topsy-turvy ride and hence, a delicate balancing act. The humble individual investors are in a fix. When the recent markets have displayed fluctuations, it reinforces the complexity of crafting a holistic and diversified strategy to consider your comfort level and your financial goals.
An advisor begins by helping you examine your investing style and risk tolerance. He can help to make it palpable to you to take care of other financial aspects that you mostly miss out and make a plan based on your financial status, comfort levels and future aspirations. Despite a meticulous planning, lives tend to change, and our financial plans would have to evolve too. An advisor’s job, under such circumstances is to revise your plan to reflect significant occurrences, such as career changes or the birth of a child, to keep your strategy on track.
From helping you to review and adjust your portfolio as your life changes, as a neutral third party, they go on to provide balance and offer specialized expertise. After all, they may just know a bit more than you do, since they deal with many different financial assets: stocks, mutual funds, ETFs, bonds, REITs, insurances (home/health/life), LEAP, etc. While you may have access to a lot of information for doing it yourselves, you probably don’t have time on a daily basis to delve into the nuances of investing and investment products the way a financial advisor does.
There is a risk in everything that you do, which is why their proposals are according to the risk level you are comfortable with. As you approach retirement, your risk level will be lower. Risk level needs to be associated with how likely you’re, to be able to reacquire your assets if you lose it and also, on your likelihood to enjoy the fruits from your investments.
Often, emotions rule actions when the markets rise and fall and the investors, who flee the market, miscalculate their return and miss out on bullish market rallies. Here, an advisor can provide a balanced perspective and motivation to manage your portfolio through ups and downs.
So, whichever the scenario maybe, a financial advisor, selected upon the bracket of charge that you can allow him from the benefits you reap from your investments, can always be there to help you see good products from bad and just like a good old friend, make it clear to you about the financial status of your investments and ways to improve. So, would you still wish to hire an obnoxious agent or a financial advisor, who has the qualifications, and hence, the vision to see you through the crashing tides of every-day-changing market situations?