Portfolio Doing Well? 5 Reasons You Still Need An Investment Advisor

8 June 2021
 Categories: , Blog


An investor enjoying high stock market returns may feel like there's no need for them to seek an investment advisor. But even during a time of good returns, you may want to ask for professional investment guidance. Why? Here are five compelling reasons to hire an investment advisor

1. You May Have Too Much Risk

High returns on stocks often go hand in hand with high levels of risk. Some risk is, of course, necessary and useful. But too much risk puts you in danger of heavy losses when something unexpected happens — or even just when the next big event happens. Have a professional consider your risk balance based on factors like age, time frames for goals, and personal tolerance.

2. You May Weigh Other Factors

Financial returns on investment aren't the only concern for many of today's investors. Some investors want to ensure their portfolio aligns with their personal belief systems. Others may want to support small businesses, certain categories of entrepreneurs, or particular industries. If you have nonfinancial goals, an advisor will help you balance these with the need to earn a profit. 

3. You May Be Able to Do Better

Just because you are turning a profit doesn't mean you're earning the most you can. Many ordinary investors look at their return versus common benchmarks like index funds and gauge success solely on beating these. But you may be leaving money on the table if you don't talk with a professional to determine whether this is the best you can do in your situation. 

4. You May Want to Branch Out

If your portfolio is doing well, now may be the perfect time to pursue other investing goals. With the safety net of a well-performing base, you could invest in some alternative investments, become a private investor in an entrepreneur's venture, or add a taxable investment plan to your retirement plan. 

5. You May Need a Tax Strategy

If your portfolio is doing well, you risk higher income taxes. Even the average investor has access to ways of minimizing taxes — including timing stock sales, harvesting losses, paying attention to capital gains rates, and looking for tax-advantaged options. Your advisor can help you find and execute these strategies so you don't lose more of that profit than is necessary. 

Where to Start

Clearly, you could use the help of a professional investment advisor at any stage of your investing life. And the perfect time to develop a business relationship with a quality advisor is when times are good, and you have the advantage of time and financial safety. Make an appointment today to get started.