3 Reasons Why a Financial Professional is Better than the Do-It-Yourself Approach
Intro
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 may be 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, one of the keys to success is long-term planning. While you may be able to do this on your own to an extent, a financial professional can help ensure that all your financial moves are well-aligned to your financial goals. In this way, a financial professional can be an important 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 while helping mitigate risk.
Tax Optimization
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. Better yet, they can help you complete those forms and submissions correctly, thus helping prevent the headache of an audit. Taken together, working with a financial advisor could help make life a little easier when it comes to taxes.
The Bottom Line
Suffice to say, hiring a financial professional could be in your best interest, depending on your situation. These trained professionals can help to provide you with valuable insights that can help make a difference when it comes to managing your personal and professional finances.
Please contact our office if you would like to discuss your situation, and whether working with a financial advisor might be right for you!
*This content is developed from sources believed to be providing accurate information. Neither Commonwealth Financial Network or True North Investments provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation. This material is intended for informational/educational purposed only and should not be construed as investment advice, a solicitation, or a recommendation to buy or sell any security or investment product. Please contact your financial professional for more information specific to your situation.This material was developed and produced by Advisor Websites to provide information on a topic that may be of interest. Copyright 2024 Advisor Websites.
