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Advice Can Add Value on Many Levels

Author: Wealth Management Systems, Inc.
Advice Can Add Value on Many Levels

In today’s Internet-enabled, do-it-yourself world, many investors are opting to go it alone. They pick their own stocks, bonds and funds; choose their own strategies; and make their own buy-and-sell decisions. While this self-directed approach may work for some, it may not be the wisest course for many.

Investment Complexity May Require Professional Advice

Investors today can choose from more than 5,000 publicly traded stocks, in excess of 7,000 mutual funds, 1,200-plus exchange traded funds and several thousand bond issues – and that’s just those listed in the United States.1 Then, there are the alternative asset classes that includes commodities, real estate, hedge funds and private equity.

The breadth of the public securities markets and the complexity of alternative investments require a high level of experience, and this is the value provided by a professional Financial Advisor. In addition, qualified Financial Advisors may have access to sophisticated strategies, institutional quality research and risk management tools that are generally unavailable to untrained individuals.

Discipline and Objectivity – The Hallmarks of Successful Investing

There are a number of classic mistakes that retail investors inevitably fall prey to: overreacting to market news, selling an investment too soon or holding it too long, trying to time the market, or under- or overestimating risk. A qualified investment professional is trained to identify the conditions that lead to these reactions, and may help you avoid these missteps.

Objective, third-party advice can also help you maintain a disciplined investment strategy because it requires that you set achievable goals, implement trading guidelines and establish rules for buying and selling securities. Investment publications, blogs and television and radio shows are filled with stories about investors overpaying in a bull market and panic selling during a market correction. A Financial Advisors is more likely to view such situations dispassionately and offer a more balanced and long-term perspective.

A Professional Can Offer a Comprehensive Approach

Professional advice’s added value is its holistic approach to investing, taking into account life events, shifting goals, changing economic and market environments, tax events, insurance issues and legacy planning needs. So if you are currently managing your own investment portfolio, you may want to consider tapping into a Financial Advisor’s experience. It may make a big difference in achieving your long-term goals.

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