Why Do We Resist Hiring an Investment Advisor
Here are a few reasons I’ve heard from individuals:
“I enjoy managing my own portfolio.”
“I can do better than most advisors out there.”
“No one cares about my money as much as I do.”
“I have had awful experiences with investment advisors in the past.”
“I don’t want anyone to know how much money I have or where it is invested.”
These are all valid reasons against hiring an investment advisor, however, from personal experience, I’ve found a few reasons to offload this responsibility.
- Investing your own money, your family nest egg, or your entire retirement can become emotionally taxing. When I used to manage my own account, the risk / reward balance became askew in one direction or the other to the detriment of my long term financial goals.
- As time passes, keeping up with the hyperactivity and instantaneous information deluge becomes daunting. It is very difficult to separate the daily noise from your long term plans when you have an emotional front row seat to results of your financial positions.
- As your nest egg grows, the risks increase dramatically. Buying 200 shares of XYZ Company because you like their product is one thing, deciding where to allocate portions of your portfolio by risk and volatility is another. When you’re young and time is on your side, you can afford to make mistakes, but as we age, volatility can play a disproportionate role in our retirement, and this can be nerve racking.
- At some point, we just want to enjoy the benefits of a life of hard work instead of working for our portfolios. Whatever your hobbies or goals are, go enjoy! You deserve it.
- You may need a single point of contact in case of a catastrophic event to manage the transition of your estate.
Any opinions are those of All Seasons Wealth and not necessarily those of RJFS or Raymond James. Investing involves risk and you may incur a profit or loss regardless of strategy selected.