To sum it up, having a financial advisor can be very productive in your investments and in achieving your financial goals. As an individual investor, which many of you are, it can be difficult to find the time, knowledge, and discipline necessary to efficiently manage your investment portfolio. A financial advisor is a valuable asset, as they have the expertise to provide excellent advice that can significantly increase your returns in the long run.
Expertise
One of the advantages of hiring a financial advisor is leveraging their investment experience. Financial advisors possess knowledge about investments, diversification, risks, and taxation. Being research-focused, they stay up to date with current financial research, products, and strategies. An advisor can tailor an individual approach to each client and prescribe an investment plan based on their time horizon, personal characteristics, and objectives. Their experience, combined with the results of their research, can assist you in making better investment decisions.
Accountability
A financial advisor also serves as a professional who can hold you accountable for sticking to your investment decisions during market fluctuations. Typical investors often incur losses by attempting to predict the right time to invest or the next big opportunity. An advisor helps you avoid emotional decision-making, objectively selects proper investments, and rebalances your portfolio as necessary. Working with an expert fosters a systematic approach to your investments.
Unbiased Guidance
Many individual investors may be influenced by behavioral biases that can negatively impact their investment returns. The advice from an advisor is clear and unemotional, relying on historical data and financial analysis rather than emotions or educated guesses. Your advisor has financial and legal duties and is thus obligated to make recommendations that benefit you rather than themselves. Many investors mistakenly believe they can consistently beat market returns, but an outsider’s perspective helps avoid self-deception during volatile markets.
Fixed Fees
Today, it is rare to find financial advisors who are compensated through commissions or by selling financial products and mutual funds. This fee structure incentivizes advisors to work in your best interest, as they only succeed when assets under management increase. Consequently, they avoid frequent trading or placing you into costly products. Pricing and motivation should be transparent when dealing with a financial advisor.
Conclusion
Introducing an external accountant proves to bring a new perspective by having an individual who is more than willing to take full responsibility for the financial planning and provide impartial advice in addition to charging reasonable service fees that have a direct positive correlation to your investment portfolio’s long-run performance. They provide the knowledge base and supervision, giving you a better chance of fulfilling your financial goals. Hence, it should therefore be on every investor’s to-do list to get the assistance of a finance expert.
That is why at 21 Storeys, we know the best way to do our financial planning as we venture into investment in real estate. Our experienced team is here to help investors navigate their way through property investment and help get the right property that will meet your financial goals. This way, you can improve the result of your investment and work towards achieving a lasting goal with professionals who know the market well.
