Even DIY Needs Help
What my friends, and a first-time investor can do if they choose to invest on a DIY basis, is to approach a licensed financial advisor representative for a fee-paying service, to know first-hand, the key issues, approaches, and where the booby-traps are on the investment journey. There is a huge body of investing knowledge that a financial advisor representative specialising in investments can provide. Granted, unlike with insurance solutions, there are no guarantees in investments.
However, with sound and proper guidance from a competent and professional financial advisor representative, a person can invest with a better posture to enhance the chances of success, and minimise the probability of significant losses.
Going with such a service can be a cost-effective option compared to using an advisor-led platform or through a bank, if the person has time, and is confident of acquiring sufficient knowledge and putting the knowledge to good practice. The cost can also be a fraction in terms of the benefits that a newbie investor can derive, by side-stepping investing landmines.
Here are some key advantages of reaching out to a financial advisor while choosing to invest DIY:
- The financial advisor representative can look at your investment not as a stand-alone, but in conjunction with your financial objectives to enhance long-term financial aspirations
- The financial advisor representative, through discussions with you, can identify the subtle points that may not be apparent through the risk profile forms
- ‘Booby traps’ can be identified in advance before heavy losses are sustained
- Strategies of investing can be suggested and put in place, especially given the overall financial objectives and aspirations
- There can be greater clarity shed on complex investment terminologies and concepts
- A list of better performing funds in different asset classes can be provided, as the financial advisor has access to such information
- As you will be investing DIY and paying a fee for financial advice, the advisor can be free of bias in his recommendations
We live in strange times. We face a double whammy of low interest rates with high inflation, and this means that every dollar that we have idle, loses purchasing power fast. There has never been a greater need to invest our money, and putting money in investment funds is one good way as we get the diversification benefits and professional management of our hard earned money. There is however, more to investments than just putting money blindly into funds, and this is where some hand-holding from a financial advisor representative can help as a crash course. You can then begin your investing journey armed with a good level of knowledge, using one of the many DIY platforms in the market.
However, if you think you are unable to put the considerable time and effort to monitor, and put the right process in place, you will be better served investing through an advisor-led platform.
People consider fees when choosing to invest, but what is the point of low fees when the performance may be sub-par because of lack of knowledge and application? Losses, due to poor investing behaviour, can be brutal in treacherous markets. With the right coherent process incorporating the advisor’s know-how, you may still not be guaranteed of making profits, but you will certainly be better off than without. That advisor fee may well save your bacon. And it would have mitigated much of my IT friend’s 50% loss.