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Three Common Misconceptions About Working With An Investment Advisor
Investing can be a complex affair, especially if you are not an expert in the field. However with hundreds of thousands of people making their first investments every year, it is no longer a field reserved for the seasoned professionals. However investments are a very risky business and could potentially be even riskier without a full understanding of the process and its implications. For this reason many people choose to consult the expert knowledge of an independent investment advisor or broker in the original stages.

In this article, we will explore three common myths regarding the service supplied by investment advisors, offering you accurate and balanced home elevators the matter.

1. The advisor takes control of money and all decisions

An excellent independent investment advisor will seek to gain a good understanding of your financial situation and in addition your financial goals. They're likely to consider the four Ws to carry out this: why you are looking to invest, what you are hoping to do with the money, what your location is seeking to invest (should you have any idea) and in addition when you would like/hope to use the money.

By gathering these facts and gaining a complete picture, they'll be able to advise and make recommendations accordingly. An independent investment advisor isn't there to take control of your money but instead to utilize their expertise to provide guidance to assist you choose way which best suits your position and aspirations. They will also discuss the risk factor plus they are likely to try and ascertain your tolerance for risk and expected rate of return to become able to make relevant recommendations.

The money will remain yours and any decisions may also be your own however if you are not really acquainted with investing then seeking the help of an unbiased investment advisor could help to offer guidance on numerous factors. long island financial advisor can help you on what to purchase, whether to buy stocks or funds, investing for income or retirement, potential rates of return and also taxable costs of one's investments.

2. Only beginners need investment advice

In actual fact, many people with existing investments turn to independent investment advisors when they are considering how exactly to move forward. With bigger investments come greater risks therefore people often want to be as well-advised as you possibly can.

Also investors who've been lucky enough to make profits on the first investments often end up attempting to grow it further and therefore look to invest in various ways which an investment advisor can offer guidance on.

An investment advisor will probably analyse your existing investments and discuss your own future investment aspirations as a way to help make a plan for going forward.

3. If I use an investment advisor, I counteract a number of the risk of investing

Sadly this is simply not true. Even probably the most seasoned experts in the field cannot deny that investing carries great amount of risks and frequently those who have made the greatest profits took serious risks along the way. An unbiased investment advisor could help on choosing the best investment suitable for your attitude to risk, however they cannot the chance of any particular investment away.

Investments can be quite a good way of growing your cash but profit isn't guaranteed and is often based on things that are out of your control such as currency markets movements. Therefore you need to always bear in mind that you could lose all the money that you invest and be left to manage the consequences.
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