7 Reasons to Stop DIY Investing and Hire a Financial Advisor

Are you frustrated with the level of growth you experience when you attempt to invest on your own? Do you feel left out when your friends or coworkers talk about how much money they are making in the market while the value of your portfolio barely budges? If the answer is yes, it is probably a good time for you to take the next step in investing journey and ditch DIY investing by finally hiring a professional. A good financial advisor can bring your portfolio to a higher level.

7 Real Reasons Why You Need to Hire a Financial Advisor

A financial advisor can help you avoid the many pitfalls of DIY investing, including:

1. Removing the Urge to Trade on Emotions

It's normal to become more than a little emotional when you think about your money. When it comes to investing, listening to these emotions more often than not can end disastrously. It takes a particular type of person to be able to put aside feelings and make the right decision every time. A financial advisor is free of any emotional attachments and is able to choose whatever action is best for your wallet.

2. Failing to Employ a Disciplined Process

Hunches and tips rarely work out in the long run, but choosing and sticking to a proven investment strategy does. That means it's important to have a financial advisor with proper training and experience with investments who will never risk your money over a gut feeling or a rumor.

3. Avoiding Rebalancing a Portfolio

Selling a well-performing asset to buy another financial instrument which is underperforming is crazy, right? Well, sometimes it makes sense to do exactly just that. Some DIY investors may be reluctant to make such seemingly counter-productive moves, but with the right planning and investment strategy, such a move could reduce risk in an investment portfolio and have positive effects to investments and finances in general.

4. Putting All Your Eggs in One Basket

The old adage ”only invest in what you know" is good advice, but if you don't have experience with several types of financial assets, your portfolio probably isn't diverse enough to offer you very much stability. A good financial advisor will make sure that your investment strategy is well diversified to minimize the effects a single investment will have on your portfolio.

5. Selling When the Market Gets Scary

The market is down for the second week in a row, and the value of your portfolio is dropping like a stone. Are you going to have the guts to stick to with your investment plan? Many DIY investors don't and wind up not only selling their investments for a loss but missing out on the very lucrative rebound. Experienced financial advisors don't get scared by adverse market conditions, so their clients are still in the market to take advantage of the rebound.

6. Trying to Call Tops and Bottoms

You have heard it a thousand times, "buy low, sell high," but attempting to call the tops and bottoms of a volatile market can cause you to lose out on a lot of profit. A professional investor knows that being afraid to pull the trigger on a trade because the fear of getting every cent from a trade is silly as long as you can catch the majority of the trend.

7. Sleepless Nights

Investing on your own is stressful. If the market is up, you are worried and thinking about whether you should ride the wave as long as possible or take your profit now. But if the market is down, it is even worse. You are terrified your investments will never recover. Why do that to yourself? Do your due diligence, hire the best financial advisor you can, and rest easy.

Why make investing harder than it has to be? Take your life back and build a stronger portfolio with a comprehensive financial plan that lets you achieve your goals by speaking with a financial advisor today. Escient Financial is here to help, so feel free to...