In a world of ever-changing technological advancements, it has become easier than ever for the average person to make and oversee their own financial investments. Through user-friendly online platforms such as SoFi Invest, TD Ameritrade, or Robinhood, just about anyone can open an investment account and begin buying and selling stocks and bonds within minutes, all from the comfort of a home computer or with a few taps on a smartphone. But while the Internet offers many options for new or even somewhat experienced investors, the question still remains: are there greater benefits to hiring a financial advisor to handle personal investments?
One of the most obvious answers to this question is the fact that, of course, there is much to know about the world of investing, and it takes time to learn the necessary ins and outs that comes with making informed — and profitable — decisions about investments. A financial advisor, on the other hand, has already acquired the education and experience required to hone solid expertise in investment strategies and can offer valuable service to an investor that may not have the time for or real interest in self-education.
With that level of education and experience, however, comes a cost. Unlike some online platforms that offer investment services free of charge, no human financial advisor offers their services for free. Many advisors will even tailor their fees according to their level of knowledge and expertise, so just like hiring any other specialist, retaining an advisor could become rather costly for an investor. Substantial fees often cut into an investor’s profits, another significant consideration that may hinder an investor from hiring an advisor to manage their portfolio.
Whether you’re a new investor learning the ropes or have some level of familiarity with the world of investing, the decision of whether to hire an advisor lies in several important questions: How well do you know and understand the markets? Have you already undergone a learning curve and have a good understanding of how to avoid potentially costly mistakes? How comfortable are you in selecting investment vehicles? Do you have an idea of which stocks, bonds, or funds may be best for your investment goals and strategies? How proficient are you at diversifying your portfolio to maximize profitability? If you answered no or were hesitant in your answers to any of these questions, it may benefit you to seek out the assistance of a financial advisor who can guide you in the right direction and ultimately help grow and protect your assets.
