How can an advisor help me with investing?

Many people are interested in getting into investing but find themselves unsure where to start. If you find that this applies to you, why not consider meeting with an advisor? We’ve got three reasons why it could make all the difference for you.

1. Build a financial strategy to help suit your needs

As an investor, it’s your goal to put your money towards investments that are likely to be profitable for you. But, it’s also important to choose investments that align with your preferences, such as your budget, risk tolerance, timeline and more. As there are an endless number of options available, it can be tough to know which are best for you.

This is one area where the help of an advisor can be invaluable. Research shows that investors that get advice build about 4 times more savings after 15 years than investors who don’t get advice₁. An advisor can help you make well-informed choices and help you craft a strategy that matches your priorities.

2. Help you build confidence with money management

Another great way advisors can help is to offer support as their clients build their confidence with money management. Each of us make choices with our money daily, but many have a relatively limited impact on our overall financial health. However, when it comes to making significant financial decisions, like purchasing a house or planning for retirement, the process can easily become overwhelming for many people. An advisor can help you build a budget so you can plan for these big moments ahead.

Instead of trying to navigate on your own, working with an advisor may be what you need to gain confidence in your decisions. Though all the final decisions will be yours to make, the advice of an advisor may help you to consider unknown options so you can have confidence in your strategy.

3. Assist you in strengthening your overall financial health

Investing your money will always involve some level of risk, so it’s important to take stock of your financial situation before investing too much of your savings. For example, if you’ve got a large amount of credit card debt to pay off, it may not be an ideal time for you to start investing. While there’s no shame in having debt, you may end up paying a great deal in interest charges and late payment fees if you’re focused on putting your money towards investments instead of paying down what you owe.

Advisors can help to weigh financial decisions such as these to help support your goals. An advisor might also suggest actions towards protecting your current financial health such as building an emergency fund or purchasing insurance. With financial protection, you can feel more confident in your ability to withstand market changes and care for your loved ones.

₁The Gamma Factor and the Value of Financial Advice – CIRANO 2016 – Claude Montmarquette, Nathalie Viennot-Brot