Nowadays, investors can get all the information they need whether it is about mutual funds, stocks, insurance policies etc. thanks to the Internet. However, online platforms do not gauge the person’s aims or liquidity needs. Only an advisor can understand and match client requirements to correct investments. Listed below are 4 key errors made by investors without the assistance of an advisor
POSTPONE FINANCIAL PLANNING
Creating a retirement corpus or saving for children’s education is seldom in a millennials’ mind. However, they need to understand that this is the best time to start investing for long-term goals. Beginning early provides more time to individuals to gather the required funds. Moreover, it offers flexibility to exit or modify their investments in case of a crisis. Advisors can aid millennials to ascertain their objectives from the start and develop a suitable financial plan to attain their goals.
KEEP SAVINGS IDLE
Majority of people save a certain amount of their income. But, owing to the hectic schedules, they are not able to invest these savings in appropriate investment avenues. As a result, this money is just lying unused in their bank accounts. A financial expert can assist such individuals in utilizing their savings into rewarding investments. He can help investors handle their funds better and thereby make sure that no cash is sitting idle.
CHOOSING WRONG INVESTMENTS
Some individuals invest a major amount of money into equities without keeping in mind their risk tolerance and goals they want to achieve. Thus, they end up making wrong choices which can affect their portfolio in the long term. An advisor is the ideal person who can do a holistic assessment of the client’s objectives, earnings, risk appetite and accordingly, recommend the best investment option.
FALLING IN THE DEBT TRAP
In order to fulfil their dream of purchasing a car or a house, numerous people opt for loans or EMI facility. If the volume of debt taken is not controlled, it can inflate to a great extent. Moreover, too much debt can also have a poor impact on the credit score. With the help of budgeting, financial experts can advise clients if they have the necessary funds to take care of loans.
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