Chapter 6You May Not Need an Investment Advisor
Don’t get me wrong here – I strongly recommend that you use an investment advisor.
There are significant advantages to having a good one working for you including:
- It takes time. How many spare hours do you have each day to devote to your personal finances? Yeah, that’s what I thought. We are all busy and having someone else doing the work for us simply makes sense if we are unlikely to spend the time ourselves.
- Expertise is needed. The more investment products and financial schemes you get involved in, the more you’ll need to know about how they work. Good investment advisors will spend much of their daily working life researching the many products and options available, and using their experience and skills to make decisions. Will you be able to to the same?
- Emotion is your enemy. If you do all your own investing you’ll probably find that, like many humans, greed and fear often get in the way of good investing habits. For example, if you were brilliant enough to pick a stock that doubled in price in one year, when do you pull the trigger and sell it? Many people suffer large financial losses waiting too long to sell a winner or selling a loser before it rebounds.
There are many good, qualified investment advisors out there and you should spend the time and effort to try and find one.
The problem is they are hard to find. Many people use their friends, relatives or even neighbours. That can be a recipe for disaster.