Why Hiring an Investment Professional is a Good Idea
Like most people, you probably think hiring an investment professional is unnecessary. You might believe using a pocket investor or investment app is just as good — or better — than working with an investment professional. However, this isn't always the case. There are many reasons why hiring an investment professional is a good idea and can maximize your return beyond what fractional investing can achieve.
What is Fractional Investing?
Fractional investing allows you only to invest a small amount of money into individual stocks. For example, if you have $500 to invest, you could choose to purchase five different stocks for $100 each. Or you could decide to buy 20 other stocks for $25 each.
The advantage of fractional investing is that it allows you to diversify your investment portfolio without investing a lot of money, reducing risk if one stock experiences financial difficulties.
However, there are also some disadvantages to fractional investing. You may not earn as much money as you would if you invested more money into fewer stocks. Investing less money overall yields a lower return.
Another downside to fractional investing is that it can be time-consuming to research which stocks to purchase. If you're not careful, you might buy a stock that isn't performing well.
On the other hand, hiring an investment professional offers you far more advantages and can help you grow your money faster than fractional investing.
Investment Professionals vs. Fractional Investing Apps
Investing involves two main options: investment professionals or fractional investing apps. Investment professionals have more experience, knowledge, and access to more investment opportunities than you'll find with most fractional investment apps or websites.
Fractional investing apps often provide little guidance, then leave you to sort things out yourself. Conversely, a professional stays by your side to provide personalized advice to ensure your money grows more significantly and faster.
You gain many benefits from hiring an investment professional, so let's review them.
Experience and Guidance
The first and most obvious benefit is that investment professionals have the experience and expertise to know which stocks are likely to perform well. They also have access to research that the average person does not, meaning they can make investment decisions based on sound data and analysis rather than guessing or taking risks.
Investment advisors also can guide you in discussing which investments are best for you, how to allocate your assets, and when to change your portfolio.
Personalized Advice
Your investment advisor takes time to understand your unique financial situation and goals and then creates a personalized investment plan just for you. With a professional by your side, you'll gain greater peace of mind and broader access to other investment opportunities.
Greater Peace of Mind
A professional investment advisor will provide the confidence to know that your investments are safe. In addition, your advisor will ensure your portfolio is well-diversified and tailored to meet your specific investment goals.
Greater Access to Investment Opportunities
Unlike many fractional investing apps, professional investment advisors have broader access to various investment opportunities. By working with an investment advisor, you can take advantage of these opportunities and achieve greater returns than you would with fractional investing opportunities.
Avoid Costly Mistakes
One of the biggest reasons people lose money in the stock market is because they make costly mistakes. People invest too much in stocks that fail to perform. Some people don't diversify their portfolio enough, if at all. Or new and seasoned investors bank on advice offered by a friend or neighbor. Approximately 90% of new and seasoned investors — everyday people like us — lose money to the stock market for many reasons. Why risk your hard-earned money like that?
When you work with a professional investment advisor, you avoid making these mistakes and protect your money while building wealth for your future.
The Final Word
Hiring an investment professional is the way to go if you're looking to take your money up a notch and grow it in ways that pocket investors or fractional investment apps can't offer. With more insight from their years of experience and personalized guidance, they can help you maximize your portfolio for growth, giving you greater peace of mind. Not to mention, they'll also have access to opportunities that are unavailable to those who invest on their own.
Ready for your money to work harder for you? Schedule a consultation with an investment professional today.
Sources
- https://www.fool.com/investing/how-to-invest/stocks/fractional-shares/
- https://www.bankrate.com/investing/micro-investing/#:~:text=Micro%2Dinvesting%20involves%20saving%20small,of%20dollars%20if%20invested%20wisely
- https://www.investopedia.com/terms/m/microinvesting-platform.asp
- https://www.cnbc.com/2019/11/11/99percent-of-americans-dont-use-a-financial-advisor-heres-why.html
- https://blog.researchandranking.com/90-percent-lose-money-in-stocks/
- https://www.extracobanks.com/personal/wealth-trust
