Investing using a Financial Planner

Before deciding whether to hire a financial advisor or invest on your own

It is vital to do a critical self-evaluation. Some aspects to consider while making this option include the ability to go through investments and devote time to study, the availability of time to monitor the investments of your choosing, and portfolio management competence. Given the foregoing considerations, I would seek the services of a financial advisor (Sinha, 2015). Finding the correct financial planner would be the next challenge. This can be accomplished by examining suggestions from existing or prior consumers, as well as their track record. How to go about investing

With the help of the financial planner, my investment strategy would be a well-diversified portfolio containing shares, unit trusts and insurance or mortgage.

The rationale includes outlining objectives and priorities, analyzing relevant information, developing plans and goals, creation of an investment management plan, implementation of the plan and continuous monitoring. The strategy will require an active engagement with the advisor by constantly reviewing the financial plan. Between reviews, the advisor will be required to provide updates on any changes regarding legislation, economy, change in markets or any other factors that would impact on the share prices and other products recommended by the advisor. A factor to consider is the fees that the planner would require. Usually, financial planners charge between $ 1000 and $ 2000 for a comprehensive financial plan. Historically, the stock market has averaged 7 percent of annual gains (Sinha, 2015). However, most inexperienced investors expect a more than 50 percent return after staking their money. For that reason, there is need for an advisor to put everything into perspective.


Planners have deeper knowledge of money management, especially in technical matters like financial instruments and taxes.

They save time that would have been spent on research.

Some fee-online advisors charge a reasonable fee and therefore one could find extremely beneficial services at pocket-friendly costs (Sinha, 2015).

Disadvantages of Do-It-Yourself Investing

It requires a lot of time for research.

There are high chances of losing initial investment or at worse, going insolvent.

Lack of experience, knowledge and expertise is a huge drawback for do-it-yourself investors (Sinha, 2015).

Negotiating the legal and marketing requirements can prove to be daunting task.



Sinha, M. (2015). Financial planning: A ready reckoner. New Delhi: Tata McGraw-Hill.

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