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5 Questions You are a Good Fit for Investment Advice

If you have an emergency fund and insurance protection in place, you may be thinking of investing your hard-earned money to see it grow. You may be wondering if you need professional investment advice or you can do it yourself. The answer will actually vary based on who you ask. Your friend who is well-versed in stock and crypto may tell you to DIY to avoid the fees.

However, a newbie just like yourself will tell you to seek help from an investment advisor, so you don’t waste your hard-earned money on risky decisions that you are unsure about. A professional can give expert advice on how to manage your portfolio based on your goals, needs, cash on hand, and future income. Collaborating with one will shed light on complex financial situations and proffer continual comprehensive financial planning based on market changes. To assess if you need this service, ask yourself these questions:

How complex is the state of your finances?

Are you young with no dependents and just need simple advice for your retirement funds? Do you face more complicated matters such as margin trading, retirement distribution, or inherited stocks? Do you think your situation will change over time with marriage, divorce, a new child, or even illness? The more complicated things are, the more advice you need.

Do you have a lot of funds to invest?

The more wealth you own, the more investment opportunities you have. That’s a good thing! However, the downside is things become more complex with more money, including taxes. Hence, you have a greater need for investment advice. People with a small portfolio don’t really don’t want to spread themselves too thinly in many assets and will try to avoid fees. In contrast, someone with a hefty portfolio can try multiple assets and not worry about the expense ratios of different funds.

Will you benefit from comprehensive financial planning?

Do you find yourself vacillating between major financial decisions and feel unsure about what to do? Do you understand your life insurance needs or your retirement funding? In case the market crashes, will you panic and sell everything, or will you have the presence of mind to hold and wait? If you catch yourself making hasty decisions, an investment advisor can provide comprehensive financial planning. And you can rest at ease knowing they have the skills and expertise to keep your money safe and proffer reasonable growth.

What are your expectations for investing?

If you expect to buy something low and cash in triple overnight, you may be in for a rude awakening. You cannot expect your money to double overnight and be wary of Ponzi schemes. However, you must keep in mind that a professional investor can consistently get better returns over time than an investment amateur. Moreover, since they know more about the market and can effectively perform technical or fundamental analysis, you can expect them to make educated decisions.

What’s your level of knowledge and interest?

You may have a basic understanding of your finances and the stock market to be your own money manager. If you are willing to learn and enjoy reading technical concepts, you may be able to successfully manage your portfolio. However, note that it takes a lot of time to monitor, analyze, and evaluate the market. If you want your portfolio to provide decent returns, you must also be willing to invest in managing it. But, if you don’t have the time and inclination to do this, then seek help from a professional.

Alison Lurie
Alison Lurie
Alison Lurie is a farmer of words in the field of creativity. She is an experienced independent content writer with a demonstrated history of working in the writing and editing industry. She is a multi-niche content chef who loves cooking new things.


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