As an amateur investor, setting up a portfolio can sometimes feel dangerous and risky. Putting your hard-earned cash away in an asset such as the stock market or cryptocurrencies might in one way make you feel like you are setting yourself up for the future, but in another way, it can make you feel as though you are putting everything at risk.
Luckily, experts and specialists are on hand to help you navigate these tricky waters. No matter what your financial situation might be, investment consultants have seen it all before – and their experience means that they can advise you on what the best course of action is for your money. This article will explain just why consulting investment experts is a wise move – and how it can turn around your whole portfolio in the long term.
Finding the right assets
One of the first key tasks for an investor who is building a portfolio is to decide on what assets they want that portfolio to contain. For an amateur investor, the first asset class that might spring to mind is stocks and shares, as that is the quintessential example of an investment that an amateur can participate in. However, this perception is a prime example of why leaving a portfolio up to the experts to craft is a wise move.
Not many experts are likely to advise a first-time, inexperienced investor to plunge all of their cash into stocks and shares belonging to a particular individual firm. On the contrary, they are likely to look at the investor’s profile, and use that to determine other avenues. If the investor is looking to build a retirement pot, for example, then they might assess whether or not the investor is making the most of any employer retirement schemes – or even suggest a stock market tracker that performs in relation to a major stock exchange, such as the Nasdaq.
They may also ask the investor how hands-on they are willing to be when it comes to their investment. If the investor answers in the affirmative, then the expert may recommend investing in real estate that they can let out and manage. Ultimately, the expert is there as a guide: their role is to dispel the myths around certain assets, and help the investor find the asset that is going to work best for them in their individual circumstances.
Experience and expertise
When it comes to experience, meanwhile, there is nothing quite like someone on side who can call on years’ worth of experience in the markets. Alex Friedman is well-known for having years of expertise in managing investment projects, and this kind of experience is invaluable because it means that your advisor can use the lessons of the past to inform your particular financial future. While it is certainly possible to do this yourself without having the relevant experience (perhaps by using resources and information on the internet), it is much harder – and the risk that you will put a foot wrong is much higher.
Risk of scams
Once you have got your expert hired and in place, you might think that you are cutting out all the risks involved with investment. However, risk is an inherent part of investing: the risk-reward cycle is what fuels this sector, and you will still have to make decisions about where on this spectrum you want to sit. Therefore, it’s important to remember that hiring an expert to help you manage your investment portfolio isn’t necessarily going to lead to you avoiding risk altogether: rather, the expert will simply help you decide what levels of risk and potential reward you are comfortable with.
However, there is one area of risk that an expert certainly can help you avoid, and that is the risk of scams. Unfortunately, the investment world is crawling with fraudsters who are out to make a quick buck from unsuspecting investors, and this is causing significant financial issues for those who are hit by a scam. From those who see bogus forex pairs to those who recruit investors to a binary options scheme that is rigged against them, there is a whole host of potential scams out there. Any investment expert worth their salt will do some due diligence on the investment schemes they offer, though, and therefore help you avoid falling victim to them.
While some individuals might choose to go full steam ahead when it comes to their investment portfolios, it is almost always wise to seek out the services of an expert. Not only can an expert help you avoid the sorts of scams that are, sadly, prevalent in the investment sector, but they can also help you locate the right assets for your investment portfolio in a way that is regulated and protected.