3 Reasons Why a Financial Professional is Better than the Do-It-Yourself ApproachSubmitted by Victory Wealth Management, Inc. on November 3rd, 2020
Opinions are free. Advice has value.
When it comes to managing your personal finances, paying someone else to decide where to put your money may feel counter-intuitive. After all, who knows and understands your financial needs and goals better than you? Well, the truth is that a financial professional is far better suited to the task.
Hiring a financial professional could be one of the best financial moves you make this year. Their utility is far greater than your capacity to manage your own finances, regardless of how well you think your do-it-yourself approach is working. Here are just a few reasons why you should choose a financial advisor going forward:
Long-Term Planning Support
When it comes to investing your current and future financial resources, the key to success is long-term planning. While you may be able to do this on your own to an extent, only a financial professional can ensure that all your financial moves are well-aligned to your financial goals. In this way, a financial professional can be a crucial resource when planning and executing a retirement savings account, along with utilizing other investment vehicles. Long-term plans need diversity to help soften the market ups and down that occur naturally.
Emotional Poise and Experience
Investing your own money in stocks, bonds, or even a retirement plan can be challenging work, especially when the markets turn sour. When this happens, an inexperienced investor might pull out of the market, locking in losses. An experienced financial professional, on the other hand, can practice the emotional poise needed to stay the course through an unexpected downturn.
A financial professional can also provide you with financial insights and advice regarding your investments based on their experience and facts, rather than speculation alone. This can help you chart a path forward that can provide you with a greater sense of comfort in investment decisions that have been implemented. (Something to this effect. We cannot guarantee results and we cannot guarantee reduced risk.
Regardless of your income or how much you invest, you’ll need to pay taxes on your financial assets each year. Completing taxes on your own can take weeks, that is, if you are able to fill out all the forms without making any errors.
A financial professional, by comparison, can help you plan for and manage taxable income. It is part of servicing a client’s total investment portfolio. With all these considerations, your financial advisor could potentially save you enough in taxes to help pay for their own services.
The Bottom Line
Once again - Opinions are free. Advice has value.
Trained financial advisors can provide invaluable insights on all the pieces of a long-term investment plan. It’s your money, your vision and your retirement. Trust a fiduciary to help you do it well.