Before fretting over stock splits and mutual funds, though, ask yourself a simple question: Do I have the time, knowledge, and expertise to manage my funds? Or would it be better left to professionals?
Helping with Retirement: Will You Have Enough Saved?
Will I have enough money to retire? That's a question faced by millions of Americans. If you aren't the type of person that keeps track of where every penny you make is spent or you have trouble saving, then a financial planner could be a perfect fit for you.
Likewise, if you own a small business but have difficulty dealing with your balance sheet, net income statement, or cash flows, then a financial advisor will be a benefit to you. They can help you go over the numbers to make a profit and save money.
Investment Knowledge: Do You Know How to Manage a Portfolio?
Market knowledge is a key element in any investment portfolio. Do you have the know-how to balance and manage your stock and bonds without losing money? If the answer is no, then financial advisors can help you meet your monetary goals. Always look at advisors' track record and certifications and make sure they're legitimate.
Long-established advisors such as the Fisher Investments Private Client Group, for example, have a successful history that speaks for itself. That way, you can take the headaches out of whether to buy or sell, or which stock is going to be the next hot buy.
Saving Time: Are You Willing to Sacrifice Free Time?
When it comes to managing your investments, remember that it's a full-time job. It requires you to check your investments and market conditions on at least an every other day basis.
So ask your yourself: Do I really want to spend what little free time I have sifting through stock quotes and financial statements? That's why advisors are a great fit for those with demanding jobs and families; so you can keep your free time available for doing what you love.
Achieving Goals: Do You Know What Your Goals Are?
Retirement aside, do you need extra capital for your business? Do you need to put your kids through college? Do you want money for a down payment? All these are pertinent questions that your advisor will help you answer.
Overcoming Adversity: What risks are Involved?
With the many Americans still struggling from a rollercoaster economy, the ability to assess risk in your investments is important. By hiring a financial professional, he/she can advise you on the degrees of risk of your portfolio. By taking this advice, you can make more sound financial plans, and avoid losing heaps of money in a down market.
While hiring a financial advisor may not be the best plan for everyone, it certainly comes with many benefits, especially for those who are a little less market-savvy. Remember, when choosing a financial advisor, make sure to find one that you're comfortable with and that fits you.
