Have you ever felt like everyone else was making money while you were losing money? Does your neighbor have a brand new SUV while you are stuck driving around your decade old clunker? Do you know which bonds to invest in and which to avoid? When you turn on the television and hear about the stock market reaching record highs, do you wonder if you might need help? Here are four signs you are in serious need of a financial adviser.
Leaving Money on the Table
The majority of investors buy high and sell low. Many financial professionals have spent decades of their lives studying the market trends and figuring out how to make money. They are very good at predicting when and how markets will shift, allowing them to profit on minor differences in prices. Professionals understand market lingo and they know how to make money in any market conditions. These financial experts make it a point to not leave money on the table. By getting the right advice, you can be sure that you have your money out and working for you regardless of how the markets are behaving.
Heavily in Debt
Debt, leverage and margin are great tools to make great profits, but as with any high reward potential, there may be a high risk involved. With leveraged accounts, it is easy to lose control if you are not very careful. Derivatives can be quite a challenge and these types of financial instruments are becoming ever more popular. But it is wise to get a professional financial adviser to help you avoid common mistakes. Interest rate swaps (IRS), credit default swaps (CDS) and mortgage-backed securities (MBS) are quite complex instruments. If you find yourself heavily in debt, then your strategy might not be working.
Keeping Up with the Joneses
One of the most conservative investments available is the government, municipal or corporate bond. This debt is on very reliable institutions with solid proven revenue streams. A good financial adviser will help you to differentiate between good bonds and bad bonds. When you try to keep up with the Joneses, you might take on more risk then you want in hopes of having a big payout. A good financial adviser will help you with proper risk management and help you know which bonds to invest in.
The average investor does not see what he misses. He only sees the forest and misses the trees. In addition, the average person investing doesn’t have the time or the resources that are required to find possible opportunities. A professional financial adviser will help tailor the perfect mix of risk and reward to diversify your portfolio. A combination of financial investments can protect you in difficult times. When you miss major opportunities, it could be something that you continue to regret for a life time. A good financial adviser will help you profit by seeing these prime opportunities as they arise and executing a strategy to help you make money.