A global pandemic, a war in Ukraine, a transition to clean energy, and historic inflation have kept the financial markets interesting, to say the least, over the past 24+ months. While no one can predict what the coming months will bring, suffice it to say, if you don't have a financial consultant serving as your trusted ally and advisor, it's time to reach out for help. Here are five reasons you need a financial consultant in today's market.
1. Ensure Your Portfolio is Diversified*
Many people do an excellent job at managing their financial portfolios. However, the unprecedented changes we continue to experience mean getting some help is wise. Even if you've managed your accounts for years, you can likely benefit from the support of a financial consultant.
The reason? So many variables are impacting the markets simultaneously. Your investments may be at risk unless you have hours to read about them and their impacts and make changes accordingly.
A financial advisor who has spent years studying, analyzing, strategizing, and planning for various contingencies can be an incredible asset in today's market. That way, you'll have a professional to help ensure your portfolio is diverse enough to sustain whatever decisions the Federal Reserve makes or what happens in the real estate or stock markets.
2. Make Recommendations Based on Market Conditions
There is risk involved in all investments. However, it is no secret that many people have made huge profits during economic downturns. With the U.S. seemingly entering a technical recession, there are opportunities to buy various stocks cheaply. Likewise, based on the current interest rates, prices, and projected ROI, a financial advisor can advise you on the benefits and downsides of potential real estate purchases or sales you're considering.
3. Help You Manage Risk
Certain investments you hold may risk losing more money than others in today's market. A financial consultant can be an incredible resource for understanding and mitigating risks. Conversely, they can educate you about low-risk, moderate-risk, and high-risk investments that may offer considerable rewards in the long term.
4. Make Necessary Adjustments if You're Retiring Soon
Those nearing retirement should make an appointment with a financial advisor who offers retirement planning and projection. With 401ks taking significant hits over the past two years, it may be necessary to reallocate funds to meet your retirement goals. Or it may make more sense to switch to a capital preservation strategy in the years leading up to retirement.
5. Learn How to Invest in Today's Market
Although most news coverage about the state of the economy has focused on existing investments, young people who are just beginning to save and invest also need help during this tumultuous time. A financial planner can help you make sense of emerging investment opportunities. They can explain the pros and cons of investing in ETFs vs. managed funds. They can also point you to companies that may align with your values if socially conscious investing is vital to you.
Get Help from an Experienced Financial Consultant Today
Our financial advisors at Finley Davis provide complete financial planning, retirement, and investment services. Whether you're a longtime investor, nearing retirement age, or just dipping your toes in the investment waters, we can help. To schedule a consultation, contact us today at 541-342-4444.
*Diversification does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk.