How to Tell if You Need an Investment Advisor

Guaranty Bank & Trust

September 1, 2020

It can seem like an extravagance, or it can be an essential factor in financial responsibility. It all depends on who you talk with. The reality is an investment advisor can take your investments to the next level when your own efforts have stalled, when a big life event has happened, or you are just intrigued about the potential of financial performance. Here, we look at what investment advisors do and how to tell if the time has come to invest in one.

What is an investment advisor?

An investment advisor may be called a financial planner, financial advisor, or investment advisor. By any name, these professionals can help you manage your money, improve your investment strategy, and help you meet your financial goals. They can help organize your overall financial situation, and then set up a retirement and investment strategy. They can help you plan for big expenses like houses and college funds, as well as everyday budgeting and spending, tax planning and estate planning. Many people can do this on their own, or they may think they do not have enough money to invest, or that they can’t afford an investment advisor. Still there are times when not having a professional advisor can cost you more in the long run.

These are four signs it may be time to invest in an investment advisor.

The thing you are doing is not working. Or perhaps they are not working as well as they could. Perhaps you have a savings account and a couple of certificates of deposit, but you know your money could be working harder for you if it was invested more aggressively. Cash investments can only go so far, and while it is nice that they be can accessed in the event of an emergency, there are other ways your money could be doing more. Diversifying into stocks and bonds and other vehicles can go a lot further toward your retirement plans, and an investment advisor can guide that strategy for returns far greater than you would get by keeping your money in a bank.

 You are overwhelmed. With news reports and speculation over the stock market, it’s normal to be fearful about the thought of investing on your own, especially if it is your first time or there is a lot at stake if you were to make a mistake or lose money. Another barrier for people is lack of time to do sufficient research and create investment strategies. Still, a lot of people simply are not interested in being involved at the level needed for maximum performance. An investment advisor is an experienced professional who can navigate the investment field in a way that does not put you at risk, while ensuring you are tracking for a secure retirement. This advisor can make sure you have a diversified portfolio and that you are not overly invested in a single sector of the market.

You have had a big event. Any time you have experienced a big life event that can leave you with a lot more money – or a lot less money – is a good time to reach out to an investment advisor. If you got married or divorced, had a child, lost a loved one, changed jobs, or lost a job, it can have an impact on financial planning. In the process of any of these events, you could have incurred more debt or had to draw from savings. Or, perhaps you came into more money and need a way to invest it soundly without error. An investment advisor can help you navigate new terrain and identify opportunities.

You want to see what is possible. Finally, a fourth sign it may be time for an investment advisor is that you are excited about the potential of your savings and investments. You may want to experiment with different types of investments or take a calculated risk on a well-performing stock. You may want to take advantage of the opportunity to combine your funds with the expertise of someone who can make them grow. It can be rewarding professionally and financially to see large returns and to know you are making strides in your financial goals. Continued growth can then open doors to estate planning and wealth management and further levels of investment management.

Having an investment advisor or financial planner can help you better understand your financial situation and take advantage of opportunities you may not be aware of. Simply put, they can make your money do more for you, which can result in a better financial picture for retirement and other goals. Having someone to help you set goals and create a path can make a huge difference when it comes to where you want to be and how you want to live.