3 Reasons Why a Financial Professional is Better than the Do-It-Yourself Approach
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, a financial professional can help 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 savings strategy.
Emotional Poise and Expertise
Investing your own money in stocks, bonds, or even a retirement plan such as a 401(k) can be challenging work. It becomes even more difficult when the markets turn sour. An inexperienced investor might pull out their investment, causing them to lock in their losses. An experienced financial professional, on the other hand, can provide the needed perspective to help you stay the course through an unexpected downturn.
A financial professional can also provide you with financial insights that are more than just hype or the "latest thing". In other words, they can provide you with advice regarding your investments that are based on their experience and the facts, rather than speculation alone. This can help you chart a more prosperous path forward while aligning your risk tolerance with your investments.
Taxes can be a real long term drag on investment returns if not managed properly.
A financial professional can help you manage your investments more efficiently in a number of ways, including proper placement of assets in accounts; harvesting losses to offset realized taxable gains; and using tax advantaged strategies such as the use of Roth accounts.
Investing tax efficiently can add real dollars to your investment returns.
The Bottom Line
Suffice to say, it’s generally in your best interest to hire a financial professional. These trained professionals are able to provide you with invaluable insights that can make the difference when it comes to managing your personal and professional finances. They can also pay for themselves in time, especially when it comes to tax savings.
Don’t procrastinate - team up with a skilled financial professional in your area today.
*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced by Advisor Websites to provide information on a topic that may be of interest. Copyright 2023 Advisor Websites.