Michael D'Angelo- June 2021
Are you frustrated with the level of growth or losses you experience when you attempt to invest on your own? Do you feel left out when your friends or coworkers talk about how much money they are making in the market while the value of your portfolio barely budges or continuously declines? If the answer is yes, it is probably a good time for you to take the next step in the investing journey and ditch DIY investing by finally hiring a professional. A good financial advisor can bring your portfolio to a higher level.
5 Real Reasons Why You Need to Hire a Financial Advisor
A financial advisor can help you avoid the many pitfalls of DIY investing, including:
1. Removing the Urge to Trade on Emotions
You've probably become more than a little emotional when you think about your money. And when it comes to investing, listening to these emotions more often than not can end disastrously. It takes a particular type of person to be able to put aside feelings and make the right decision every time. A financial advisor is free of any emotional attachments and is able to choose whatever action is best for your wallet.
2. Putting All Your Eggs in One Basket
The old saying, ”Only invest in what you know," is good advice, but if you don't have experience with several types of financial assets, your portfolio probably isn't diverse enough to offer you very much stability. A good financial advisor will make sure that your investment strategy is well diversified to minimize down markets.
3. Selling When the Market Gets Scary
The market is down for the second week in a row, and the value of your portfolio is dropping like a stone. Are you going to have the guts to stick to your investment system? Most DIY investors don't and wind up not only selling their investments for a loss but missing out on the very lucrative rebound. Financial advisors don't get scared by adverse market conditions, so their clients are in the market to take advantage of the rebound.
4. Trying to Call Tops and Bottoms
You have heard it a thousand times, "buy low, sell high," but attempting to call the tops and bottoms of a volatile market can cause you to lose out on a lot of profit. A professional investor knows that being afraid to pull the trigger on a trade because the fear of getting every cent from a trade is silly. Catching the majority of the trend- that’s what matters most.
5. Sleepless Nights
Investing on your own is stressful. If the market is up, you are worried whether you should ride the wave as long as possible or take your profit now. But if the market is down, it’s even worse. You are terrified your investments will never recover, or will continue to dig yourself in a deeper hole by continuously investing in a losing strategy. Why do that to yourself? Do your due diligence, hire the best financial advisor you can, and rest easy.