Investing for your future is important — but it can be challenging. How can you navigate the complexities of the financial markets and make the right decisions for your situation?
Fortunately, you don’t have to go it alone. A financial advisor can help you in these key areas: Developing a personal financial strategy – Many factors go into creating a long-term financial strategy. What is your risk tolerance? When would you like to retire? What sort of retirement lifestyle have you envisioned? What are your other important goals? A financial advisor will ask these and other questions in getting to know you, your family situation and your hopes for the future. By taking this type of holistic approach, a financial advisor can help you create financial and investment strategies appropriate for your needs.
Avoiding mistakes – A financial advisor can help you avoid costly investment mistakes. One such mistake is attempting to “time” the market. Investors pursue market timing when they try to “buy low” and “sell high.” In theory, of course, this is a great idea — if you could consistently buy investments — stocks, in particular — when their price is down and then sell them when the price has risen significantly, you’d always make some tidy profits. The main drawback to this technique, though, is that it’s virtually impossible to follow, especially for individual investors. Nobody, not even professional money managers, can really predict with any accuracy when stock prices have reached high or low points. Consequently, those who try to make these guesses could miss out on opportunities.
