Your investment needs are unique and changing. There's no one-size-fits-all solution, which is why most people need the help of a professional advisor.
If you're under 50, you may be wondering whether you need investment management services. Here are four reasons you may want to consider hiring an advisor.
1. Start Early And Minimise Risk
The earlier you begin investing in a retirement fund, the better off you'll be later on when it comes time to retire. That's because compound interest works in your favour over time and can help smooth out any dips or spikes that occur along the way. The longer you wait to begin investing, however, the more risk there is that something will go wrong before retirement age — like market volatility or inflation — which could significantly reduce your savings' value before they ever reach their full potential. Investment management can help you reduce risk when you start early.
2. Time For Compounding Interest
The more time you have for compounding interest to work in your favour, the better off you'll be over time. Compound interest is the process by which money earns interest on previously earned interest. It's like getting paid on top of your earnings; once you're earning more than just a simple interest rate on your investment, compounding starts to come into play and can make a big difference over time.
3. Start A Business
Starting a business is one of the most common ways that people lose money on their investments. This happens because many entrepreneurs don't have any experience with managing cash flow and dealing with taxes. They also often don't know how to manage their time effectively or delegate tasks properly, which can slow down the growth of the business and lead to errors that cost valuable time and money. Investment management can help you understand these investment pitfalls and lessen the risk you are taking with your money.
4. Understand Your Goals And Needs.
It's important that an advisor understands where you are financially so they can recommend investments that will meet your goals and needs. For example, if your goal is retirement savings, then an advisor might recommend mutual funds that invest in stocks, bonds, real estate, and other assets designed for long-term growth potential rather than short-term gains from trading stocks every day or week based on technical analysis (which does not work very well).
Investing is the key to building wealth and capitalising on opportunities. The earlier you start investing, the better your chances of building wealth. Chat with a financial professional about investment management today.Share
8 July 2022
Planning for your financial future can be tricky. With so many outgoings to juggle, the typical person finds it difficult to keep track of their spending. Learning some basic financial skills, like how to make a budget and how to invest for the future, can make a huge difference to your long-term financial health. Take a look at our posts to find out how you can save money without making big sacrifices to your way of life. Learn about essential aspects of finance, such as retirement planning. Whether your goal is to get out of debt or save for a rainy day, we can help you achieve it.