How Do Financial Advisors Help You?
The question I’m asked most often is, “What do you think will happen to the markets if ‘X’ happens?” The second most common question is “Should I sell stocks now?”
The honest answer to both questions is that no one knows for sure. Short term volatility along with event “risk” many times leads to fear and poor decision making.
In the long run, many factors contribute to the rise in equity markets. Inflation, population growth, GDP growth, and wage growth are some of these factors which lead to increases in the value of equity markets over larger time frames.
People who invest over time using dollar cost averaging are typically better positioned to have a healthy retirement nest egg, than those who trade. In fact, according to the UC Berkeley Haas School of Business, 98% of people who trade, lose money or at best, underperform benchmarks.
Retail investors tend to buy high when everything seems great, and sell low when fear runs rampant. The professionals know this and take advantage of this psychological edge. The reasons you should use a Financial Advisor are many fold, but one of the bigger reasons is to help prevent you from making poor decisions at the wrong time.
Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Past performance may not be indicative of future results. Dollar-cost averaging cannot guarantee a profit or protect against a loss, and you should consider your financial ability to continue purchases through periods of low price levels.
- Yields Plunge
- All Seasons Wealth Newsletter – Q1 2023
- January Bond Market Report
- Executive Wealth Management: What Is It, And What Are Its Top Benefits
- Tips For Choosing Qualified Financial Advisors For Business Owners
- The Importance Of Physician Financial Advisors
- The Need For Reliable Divorce Financial Planning Services
- Getting Ready To Retire
- Getting Married
- Preparing For Baby