Market
swings
making
you
uneasy?
Let’s
talk.
Mike Smith
Financial Advisor
5189 E I-20 Suite 103
Willow Park, TX 76087
817-441-9439
Member SIPC
SEPTEMBER 2015
PA R K E R C O U N T Y T O D AY
FINANCIAL FOCUS
Five Reasons Not To Be a
“Do-It-Yourself Investor
These days, you can go online and invest, for modest fees.
You can also visit various websites for research and watch numerous cable shows for investment recommendations. So, why
shouldn’t you be a “do-it-yourself” investor rather than work with
a financial professional?
Actually, there are at least five good reasons why a financial
advisor can help make you a better investor.
A financial advisor can:
Ask the right questions — If you try to invest on your own,
you may find yourself asking the wrong questions, such as:
“What’s the ‘hottest’ investment out there?” A financial professional can help frame better questions, such as: “Given my
individual risk tolerance and long-term goals, which investments
should I consider to help me build a balanced portfolio?” In other
words, a financial professional can help you ask the questions
that can lead to better results.
Look at your situation objectively — No matter how hard
you try, you won’t be able to take all the emotion out of your
investment choices. After all, your investment success will play
a large role in some key areas of your life, such as your ability to
enjoy a comfortable retirement. Consequently, if you think you’re
not making the progress you should with your investments, you
may be tempted to make a hasty decision to give your portfolio
a “jolt.” Frequently, though, such choices can backfire. When it
comes to investing, it’s better to invest with your head, not your
heart. A financial advisor can analyze your situation, assess your
risk tolerance and make appropriate recommendations.
Show a deeper understanding of investment research — You
can look up many types of financial data on your own. But do
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you know how to put all these pieces together into a cohesive
picture? A financial professional, with years of experience and
training, is generally more capable of finding the research sources
and making the most sense out of the results.
Put experience to work in making portfolio recommendations. Even if you’ve been investing for many years, you might
be surprised at all the underlying influences that should go into
making investment decisions. But a financial professional understands market patterns, the nature of diversification and other
factors necessary in helping you make the right choices for your
situation.
Spend time looking for opportunities — Even if you enjoy the
process of investing, the chances are quite good that you can’t
spend as much time on it as a financial professional. That means,
among other things, you aren’t constantly on the lookout for new
investment opportunities. Nor are you always looking within
your own portfolio for opportunities to rebalance or make other
adjustments that can help you move forward toward your goals.
But when you work closely with a financial advisor, he or she
is exploring the financial markets for new investment prospects
while regularly reviewing your portfolio for possibilities of upgrading quality, increasing diversification or making adjustments
in response to changes in your life.
The “do-it-yourself” route may be fine for home repairs. But
when it comes to managing your investment situation, there are
benefits to working with a professional.
This article was written by Edward Jones for use by your local Edward
Jones Financial Advisor.