Getting Started with Investing? Consult a Financial Planner

Posted on: 25 January 2019

If you want to invest but you don't know the type of investment suitable for you, then a financial planner, usually a certified personal accountant (CPA), can help.

When it comes to making investments, hiring an experienced financial planner can greatly help you to achieve your goals with less struggle. This is because the financial planner can offer you a professional and impartial take on the state of your finances.

However, you want to make sure that you are getting the best financial planner that you can, so it is important to do background research on the financial planner before engaging their services.

Are Your Finances Complex?

Are you single, young, and just looking for direct investment advice? Or is it that you have more technical issues, like inherited stock, retirement distribution policies, and margin trading? Is your situation about to become complicated after you have a child, deal with being ill, or get a divorce? The bottom line is—you need a financial advisor when investing, especially when you are in a complex situation.

What's the Amount of Money You Are Willing to Invest?

The more money you have, the more investment preferences you'll have, and this will increase the need for a financial planner. Generally, people with small portfolios don't want to spread them across numerous assets. They are well suited to invest in index funds, and a financial planner can help them achieve that.

What's the Type of Financial Planning You Need?

Do you need to talk to someone about the type of car you need to buy? Or, do you just need advice about the type of insurance coverage you need? You will need to ask these questions before making the final decision on the type of financial planning you require. If you want a financial planner to provide you with the financial planning you need, then the money you pay for their services is worth it. Also, if you need to invest a small portion of your money just to determine what happens, then you may only need an hourly consultation.

Your Expectations

When the planner tells you that they know how to beat the market, there is a possibility you will end up being disappointed. Only a few people are able to outdo the market consistently. However, a good financial planner should be able to give you better returns within a particular period of time (not just after one day).