7 Reasons First Responders Need to Stop DIY Investing & Hire a Financial Advisor

Are you frustrated with the level of growth you experience when you attempt to invest on your own? Worse even, are you feeling overwhelmed and confused by the options out there? If the answer is yes, it is probably a good time for you to take the next step in your journey toward retirement as a first responder and ditch DIY investing by hiring a professional. A good financial advisor can help elevate your portfolio to a higher level.

A financial advisor can help you avoid the many pitfalls that come with DIY investing. Explore some of the drawbacks of DIY-ing your investment portfolio below.

1. REMOVING THE URGE TO TRADE ON EMOTIONS

It’s natural to become more than a little emotional when you think about your money. After all, you’ve worked hard to earn it and save over the years. However, listening to these emotions can end disastrously more often than not when it comes to investing. It can be incredibly difficult to put your feelings aside and make the right decision every time. 

Working with a financial advisor puts a barrier between emotions and actions. Since advisors are free of emotional attachments, they can choose whatever action is best for your long-term goals.

2. FAILING TO EMPLOY A DISCIPLINED PROCESS

Many individuals forget that the economy and the market are not the same. Further, it’s easy to get caught up in the latest blitz on the news cycle — or the must-have stock everyone is talking about on Twitter. In reality, hunches and tips rarely work out in the long run. Instead, choosing and sticking to a proven investment strategy does. Your financial advisor has years of investment experience to use as a guide and will never risk your money over a gut feeling or a rumor. 

3. AVOIDING REBALANCING A PORTFOLIO

Selling a well-performing asset to buy another financial instrument that is underperforming is crazy, right? Not if you know what you’re doing. Many individual investors forget to consider taxes and the effect they have on gains. While most DIY investors are reluctant to make such seemingly counter-productive moves, the professionals know when it makes sense to take the risk so you may reap the reward.

4. PUTTING ALL YOUR EGGS IN ONE BASKET

The old adage, ”Only invest in what you know," is good advice. However, if you don't have experience with several types of financial assets, your portfolio will not be diverse enough to offer you stability. For example, a strong portfolio consists of stocks, bonds, cash assets, and maybe even real estate. A good financial advisor will make sure that your investment strategy is well diversified to minimize down markets and is paired with resources like disability insurance and an emergency fund to keep your plan on track.

5. SELLING WHEN THE MARKET GETS SCARY

The market is down for the second week in a row, and the value of your portfolio is dropping like a stone. Are you going to have the guts to stick to your investment plan? 

Most DIY investors don't and wind up not only selling their investments for a loss but also missing out on the very lucrative rebound. Financial advisors know not to panic at adverse market conditions, enabling their clients to take advantage of the rebound.

6. TRYING TO CALL TOPS AND BOTTOMS

You’ve probably heard it a thousand times: "Buy low, sell high." But, attempting to time the tops and bottoms of a volatile market can cause you to lose out on a lot of profit, sometimes even devastating a portfolio. 

Most individuals find themselves afraid to pull the trigger on a trade because they want to get every penny possible. Financial advisors know that it’s silly to get caught up on hitting the highest peak or lowest valley, as long as you catch the majority of the trend. 

7. SLEEPLESS NIGHTS & LOST DAYS

Investing is inherently complicated and time-consuming. Each action requires lots of research, and your investments can quickly begin to consume all your time and thoughts. As a first-responder, you don’t have time to spend all day looking into each and every portfolio action.

Investing on your own is also stressful. If the market is up, you worry whether you should ride the wave as long as possible or take your profit now. But if the market is down, it can be even worse, causing feelings of terror that your investments will never recover. Don’t put yourself through the emotional rollercoaster? By doing your due diligence and hiring a great financial advisor, you’ll be able to rest easy knowing your portfolio is in the best hands possible.

Don’t make investing harder than it has to be. Contact Anew Advisors to learn how you can take your life back and build a stronger portfolio.