3 Reasons Why a Financial Professional is Better than the Do-It-Yourself Approach
by Larry Frank on Aug 16, 2020
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.
Emotional Poise and Expertise
Investing your own money in stocks, bonds, or even a retirement plan can be challenging work. A great deal of this challenge, however, arises when the markets turn sour. When this happens, an inexperienced investor might pull out their investment, causing them to lock in their loses. 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 that are more than just hype. 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 without incurring nearly as much risk.
Regardless of your income or how much you invest, you’ll need to pay taxes on your financial assets each year. Completing taxes for your complex financial assets on your own can take weeks of your time; that is, if you are able to fill out all those forms without making any errors.
A financial professional, by comparison, can help you plan for and complete your financial asset-related taxes without trouble. Better yet, they can help you complete those forms and submissions correctly on the first try, thus preventing the headache of an audit. Taken together, your financial advisor could save you enough in taxes to easily pay for their own services.
The Bottom Line
Suffice to say, it’s 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 your savings during tax season.
Don’t wait to hire your own financial professional, though! These experts are always in high demand, so you should act fast to 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 2022 Advisor Websites.