Is a financial advisor worthwhile for an investor?

If you are looking to begin your investment journey, or are looking to expand an already established portfolio, you may be considering using the services of a professional financial advisor.

There are both advantages and disadvantages to using the services of a pro when it comes to investing and we’ve created this guide to let you know exactly what a financial advisor can offer to you as an investor, to allow you to make an informed decision based on your specific circumstances.

Do I need a financial advisor to invest?

In a word, no. It is certainly possible to meet your investment goals, whatever they may be, without the assistance of a financial advisor.

Just because you can do something, however, doesn’t mean that you necessarily should.

Many people feel as though they don’t need the services of a professional when it comes to investing, especially in the internet age, where the answer to any question you may have is at your fingertips.

However, whilst there are a small percentage of people who are truly passionate about investing, studying the market religiously, creating financial forecasts, and planning their next move accordingly, for the vast majority using a professional advisor is the smart thing to do.

Most people looking to invest already have a busy life with a full-time job, family to look after, and any free time extremely precious, and the last thing they want to be doing is tracking market trends.

By using a financial advisor you can be confident that any investment you make will have sound logic, and will be constantly monitored by the advisor who will let you know if you need to take action based on their observations.

This will allow you to enjoy all the benefits of shrewd financial investment, without all the stress associated with day-to-day portfolio management.

How can a financial advisor make you money?

Besides tracking your investment and market trends to ensure that your assets are in the most profitable place at any one time, there are a number of ways that a financial advisor can add value to your portfolio.

These include:

Changing your mindset

Solo investors, especially inexperienced ones, tend to be very reactive to market changes often panic selling shares or stocks based on fluctuation they see happening on a day-to-day basis.

Using a financial advisor will help settle you down and make decisions based upon logic and not fear.

This means that you will be able to see out periods of turmoil and benefit from overall market trends rather than short term ups and downs.

Knowing when to Act

Following on from the idea of making informed decisions and not rushing into making decisions, a financial advisor will help to increase the value of your investment portfolio by knowing exactly when to make withdrawals.

The worst mistake that rookie investors make is to sell when they see the market dip as they are scared to lose more money and invest in stocks that have recently risen, as it is likely that these will fall again if the rise is part of a pattern.

A trusted advisor will stop you from making these mistakes, letting you know when its time to hold and when you should withdraw based on long term trends and projections, saving you a huge amount of money in the process.

Financial Planning

The key to consistency in investing is developing an established plan that can be adapted based on the market state at any one time.

Your plan could have a set saving goal in mind such as creating a university fund for your children or bulking up your retirement nest egg, and a financial advisor will help you to build towards these goals in an achievable manner.

These goals may be achieved in a number of different ways, all of which can be managed through a financial advisor paisley, including tax strategies, lifestyle tips, making investments, and making small regular savings.

Contact CSR financial services

If you are looking for expert investment advice from a financial advisory firm with over 30 years of experience serving clients in the West of Scotland and across the whole of the UK, CSR are here to help.

We are a family run business specialising in investing, property management, residential letting, residential sales, and mortgage advice, and will work hard to ensure that all your financial goals are achieved.

To talk to our expert team about any of the services that we offer, or to learn more about starting your investment journey today, contact us by phone on 0141 212 2636, or by email at colin@csrfinancial.co.uk.