Individual Investing or Hiring a Financial Advisor?
Although high school and college courses may teach you how to land a well-paying career, they seldom instruct you on how to handle and comprehend your finances. Is that crucial? I really believe it to be the case, and the majority of you will concur. While having a high-paying work is helpful for maintaining your standard of living, conserving money and growing it are even more crucial.
Financial advisors typically pique your curiosity to invest by presenting the generally accurate long-term stock market growth theory. This gives you peace of mind because it is statistically proved that you will witness an increase on what you started with in at least 30, 50, or 100 years. Contrarily, it is crucial to be aware of the fact that stock markets occasionally vary, which may very well coincide with the moment you decide to retire. Even worse, it can happen that you retire when the stock market is exactly where it was when you started. This indicates that the money you invested over the years generated no interest for you.
This can be accomplished by following a spending plan and using coupons and discounts. But even after all of this, the issue of what to rely on when we permanently stop working remains. We cannot only rely on social security in the society we live in today, where the government deducts money from our retirement accounts to pay for our national debt.
All of this can be solved by investing and letting it take care of you when you take your permanent vacation from employment, which considerably decreases this risk. If done properly and with excellent risk management, investing grows over time if it isn't overused. Your ability to manage the risk you incur with your hard-earned earnings, which eventually will be invested in the stock market, or the ability of your financial advisor to make a solid investment will depend on both (e.g. 401k, life insurance, etc).
