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Three Common Misconceptions About DEALING WITH An Investment Advisor
Investing can be quite a complex affair, especially if you are not an expert in the field. However with hundreds of thousands of individuals making their first investments each year, it is no more 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. This is exactly why many people elect to consult the expert knowledge of an independent investment advisor or broker in the initial stages.

In this article, we shall explore three common myths regarding the service supplied by investment advisors, offering you accurate and balanced information on the matter.

1. The advisor takes control of money and all decisions

A good independent investment advisor will seek to get a good knowledge of your financial situation and in addition your financial goals. They are likely to think about the four Ws to carry out this: why you are looking to invest, everything you are hoping to do with the money, what your location is looking to invest (for those who 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 in a position to advise and make recommendations accordingly. An unbiased investment advisor isn't there to manage your money but rather to utilize their expertise to provide guidance to help you choose way which best suits your position and aspirations. They'll also discuss the chance factor plus they are likely to try to ascertain your tolerance for risk and expected rate of return to become able to make relevant recommendations.

The money will stay yours and any decisions may also be your own however if you are not really acquainted with investing then seeking assistance from an independent investment advisor could help to offer guidance on numerous factors. They can help you on what to purchase, whether to get stocks or funds, investing for income or retirement, potential rates of return and in addition 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 desire 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 wanting to grow it further and therefore look to spend money on different ways which an investment advisor can offer guidance on.

An investment advisor will probably analyse your existing investments and discuss your future investment aspirations in order to help make an idea for going forward.

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

Sadly this is simply not true. Even the most seasoned experts in the field could not deny that investing carries great deal of risks and frequently individuals who have made the greatest profits have taken serious risks along the way. west palm beach financial advisor may help on finding the right investment suited to your attitude to risk, however they cannot the risk of any particular investment away.

Investments could be a great way of growing your cash but profit is not guaranteed and is frequently based on items that are from the control such as stock market movements. Therefore you need to always bear in mind that you could lose all of the money that you invest and become left to cope with the consequences.
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