Looking for an Investment Advisor? Answer These 4 Questions First

by | Sep 21, 2020 | Blog

While we know that having a long-term, trusted relationship with an investment advisor can help a lot of people reach their financial goals, it’s not for everyone.  Some people may be better off managing things on their own, and that’s okay.  However, if you’re unsure if it’s time to start working with an investment advisor, there are a few questions you should ask yourself.

If you want to avoid outliving your money, investing can be a great way to continue growing your money as you approach retirement.  In the year 2020, the technology of robo-advisors certainly exists, and is an option for investors. However, the one-on-one, hands-on approach and personal advice and guidance you get when working with a real-life investment advisor often times will offer better insight and clarity into the investment process.

From your needs and objectives to your risk tolerance and timeframe, there are a variety of factors your investment advisor will consider when creating an investment strategy.  All of those factors playing into the larger life goals of your financial plan. However, before you hire an investment advisor, it’s important to ask yourself these four key questions first.

How Complicated is My Financial Situation?

Investment advisors can be helpful in all types of situations, but naturally they bring more to the table for a more complicated financial situation. Things like inherited stock, investing the assets of your small business, or retirement income planning require more in-depth insight. Even if you’re simply looking for straightforward simple investment advice, many investment advisors offer advice that could save you some time and money in the long-run. Especially if you’re about to experience a transition — such as the birth of a child, a divorce, or retirement — teaming up with an investment advisor can help guide your decisions as you enter new financial territory.

Do I Need Additional Financial Help?

When looking for someone who can help you invest your money, you can either hire someone who purely specializes in investment management, or you can find someone who offers comprehensive financial planning services. Here at Mullooly Asset Management, we lead with financial planning, and that helps us determine a number of different factors within a client’s investment strategy.  Financial planning helps identify which goals to prioritize, and how to go about reaching those goals.  It helps a client have a well-rounded financial picture when their investment strategy aligns with their financial planning goals.  That leads us to the next question.

What Are My Goals?

This may seem like an obvious question, but some people overlook this critical question and end up in an undesirable situation. Realizing your goals BEFORE you get started investing is crucial.  If you know your goals, you will have a more accurate idea of how much risk you need to take versus how much risk you’re willing to take.  Knowing your goals can also help you remain invested through difficult stretches in the market if you know what that money is for, and you know you have a longer time horizon.  If you’re someone who is certain you want to invest for the long haul, then hiring an investment advisor can give you the accountability you need to achieve your investment objectives. It’s always a good idea to identify your expectations of the experience first before you get wrapped up in a long-term commitment.

How Much Will This Cost?

No investment advisor works for free.  There are a handful of different ways that different advisors get paid.  If you’d like to see how our fees are structured here at Mullooly Asset Management, click this link here!  For some people, they would rather save the money and do it themselves. However, an investment advisor is valuable in that they can educate you, as well as apply their knowledge, to help you make smarter investment decisions. At the end of the day, an investment advisor is an investment in itself, so you’ll want to think carefully about what you’re willing to pay for the value they can provide you.

While working with an investment advisor is not for everyone, we believe that the right relationship can provide tremendous value over the span of a client’s financial life.  If you’d like to learn more about how we help our clients here, click this button to schedule an initial meeting.  There is no cost or obligation.

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