Why it’s better to work with a professional rather than going at it alone
Investing money can be an incredibly exciting experience, but it can also be quite daunting if you’re not familiar with the process. If you are interested in self-managing your assets you have to determine what companies you want to invest in, how long you want to keep your money in a particular investment, and how to respond when you experience a change in the markets. With your hard-earned money on the line, it’s important that you invest in the ways that are right for your particular situation.
If self-managing your assets is not your cup of tea having someone you trust to actively manage your assets to guide them through the ups and downs of the market will help ensure that you find success with your investments. Below we’ll discuss six benefits that come from working with a Registered Investment Advisor (RIA).
1. Registered Investment Advisors provide a strategy.
There are plenty of ways that you can approach investing. For some people, it’s simply a casual hobby. If you take your investments seriously, however, working with an RIA may be a smarter move. An RIA can help you determine your short- and long-term goals and provide a comprehensive investment management strategy to help make those goals a reality. Depending on what you’re looking to get out of your investments, they’ll be able to manage your investments through the big decisions that could have a dramatic impact on your financial future and help you arrive at the proper strategy for your unique situation.
2. Registered Investment Advisors protect you from your emotional biases.
The only predictable thing about the markets is that they are unpredictable. You can count on having to weather seasons of volatility with your investments. Too often, investors experience a dip and pull out of the markets in a panic. Unfortunately, emotional decisions like this are detrimental to achieving long-term success with your investments.
RIAs understand market volatility and they also understand how scary it can be to experience it as an investor. An experienced professional can help you regulate your emotions and keep you from making rash decisions that may negatively impact your portfolio down the road.
3. Registered Investment Advisors bring experience.
Seasoned RIAs have lived through many market cycles, experiencing trends and big anomalous events, too. In other words, they’ve been around the block a few times and they understand what to do with your money – and when to do it – in order to accomplish your goals. Their entire job centers on navigating the markets through their investment management philosophy, so they’ll be able to bring experience to the table to guide your portfolio through the uncertainty.
Additionally, an RIA’s knowledge and experience can help you better understand industry trends and interpret data that may be difficult to comprehend on your own.
4. Registered Investment Advisors work for you.
RIAs who work independently will be dedicated to working for you, the client, in a fiduciary capacity to help you achieve the goals you’ve set. An RIA who is the right fit for you will share your common values and be someone that you can trust implicitly with your money. They’ll be able to speak with you intelligently about what’s occurring in the markets and with your investments, explain it to you in layman’s terms, provide full transparency, and manage your assets prudently to make the most of the many investment choices available.
5. Registered Investment Advisors can identify hidden opportunities.
When you think of investing, it may seem like it’s just about buying shares of companies that you predict will do well in the future – but it’s much more complex than that. An RIA also considers things like tax implications and time horizons. Working with an RIA means you have someone in your corner that understands the nuances of this and can help ensure your portfolio is maximizing all of the opportunities available.
6. Registered Investment Advisors do the legwork.
When done right, investing is incredibly time-consuming. It requires not only time, but a deep knowledge of the financial markets, economics, monetary policy, interest rates, company fundamentals, and technical indicators. An experienced RIA will be able to use tools, resources, knowledge, and relationships at their disposal to handle all the legwork for you. They’re the ones who will do the research, create short-term and long-term plans for your investments, implement their investment management philosophy, and then execute those plans on your behalf.
What Does This All Add Up To? Peace of Mind.
At the end of the day, there’s no way to clearly see the future. No one can time the markets successfully, including RIAs. So, investing always requires that you open yourself up to a certain amount of risk. However, there is a lot of data and many tools available, and when you utilize the services of an RIA who has many years of experience, a proven investment performance track record, and a stringent investment management philosophy you can minimize your risk. Finding an RIA that you can trust and build a relationship with them means greater peace of mind that you’re making smart decisions with the money you invest.
At Davidson Capital Management, we have 70+ years of combined investment management experience and we are here to help our clients invest with the confidence they need to live their lives, achieve their goals, and find long-term success in their investments. If you’d like to speak with one of our professionals about your investment portfolio, please contact us today.