Four Reasons You Should Hire a Portfolio Manager for Your Investments
Posted on: 1 November 2018
The stock market is no place for amateurs. Many people were recently reminded of that fact when NASDAQ reported the biggest October loss in a decade. Even market mainstays, such as Google, saw losses. While it may not have been a complete crash, the volatility was unnerving, especially for those who are beginners playing with no-fee apps for beginners. While putting your money with an investment firm is no guarantee, it is the wiser choice for most people who aren't in the financial industry. Here are the benefits of working with a portfolio manager.
A Portfolio Manager Has Far More Experience
Unless you have a master's in business or economics degree, chances are you are nowhere near as experienced or financially savvy as a professional. Learning the lingo alone can take years. The goal of investing is to take whatever surplus money you have above your monthly expenses and put it in investment vehicles that will allow your money to work for you. Do you really trust yourself to make the right decisions?
A Portfolio Manager Has More Time
It can be very time consuming to manage your investments, especially if you are diversified as you should be. Managing a large portfolio can be a virtual full-time job, but even a small one takes considerable time and research each week, time that most people don't have. Just as most people wouldn't try to be their own lawyer and would rather pay an expert, the same applies to hiring a professional to manage your money.
A Portfolio Manager Has Their Ear to the Ground and Their Finger on the Financial Pulse
Professionals who are in the business devote a lot of time to watching and reading the financial news. They also know more about what is going on and can more accurately gauge which way the market is moving and what industry sectors are thriving. They know which rumors they can trust and which sources they should dismiss. They also have a thorough understanding of the subtle signs and nuances of the market, its biggest players, historical events, and the cause and effect of even small shifts or market fluctuations.
A Portfolio Manager Can Help You Meet Your Goals
Whether you are just starting out and want to save towards purchasing a home or you are nearing the end of your career and want to ensure you will have enough money to retire, a portfolio manager can work with you to achieve the results you want. For example, a younger person with many work years ahead can afford to take on more risk with high-volatility stocks than an older person can. Diversifying isn't as important later in life, either. Don't run the risk of losing everything you have worked so hard for. Seek out recommendations for investment firms like the DiFalco Group and set up interviews to find out what is right for you.
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