These days, everybody wants to get into the investing game while saving towards their goal. At the same time, they question whether they really need to consult a financial advisor before deciding how to utilise their funds. A lot of people think they are capable of managing their money themselves, even though they have little experience with the world of finance. While this may be possible for some, who really invest the time and effort to learn, most people think they can get by using simple google searches to make decisions. However, financial planning is a complex game, and requires the right amount of experience and knowledge to execute effectively; and a few google searches won’t suffice. Let’s take a look at why this is true.

The limitations of using google as your personal financial advisor

Using google as your tool for financial advice is limited by the amount of knowledge you actually have on the matter. While googling for answers to the questions you may have, there is a possibility that you may overlook essential information that can lead to a slew of bad investments. Apart from this the answers you get may be extremely general, and may not apply to your profile as an investor; there is also a possibility that the information you get might not be current. These factors can lead you to make costly mistakes when it comes to managing your finances. While google may be a good place to start looking for suggestions, more nuanced and detailed research is needed to truly identify the right opportunities for you. This takes time and effort, which most people may not have given their busy schedules.

Work with a professional when it comes to deciding on investments

As an investor, you will need to be updated on current affairs and other important developments in both local and international geographies as these could cause changes to the market; and hence affect the viability of your opportunities. Apart from this, you will also need to create a plan for asset allocation that matches your risk tolerance – and prepare for various contingencies at the same time. As balancing these processes can become quite complex, consulting a certified and experienced financial advisor is particularly important when it comes to deciding how to go about your investments. This is especially true for new and part time investors, who may not have the experience or time, to identify the right opportunities and develop an optimal strategy towards achieving their goals efficiently. 

The best way to decide upon how to invest your money is to create a financial plan. Financial planning involves preparing a comprehensive statement of the long-term goals for your security and well-being, and developing a savings and investing regimen to achieve those goals. Apart from this, features of a good financial plan also include understanding the risks, procuring the right quanta of insurance to protect your investments from possible contingencies, a psychometric test to understand your risk profile and devising an appropriate asset allocation strategy on the basis of the aforementioned factors. For these reasons, it is pertinent that you work with a professional financial planner who will provide an objective opinion and leave no stone unturned in the process of developing your plan. 

Takeaway

When it comes to looking for advice on how to make investments, google alone will not be sufficient. While it is a good place to start, you need to consult an experienced advisor who can ensure that you don’t make any costly mistakes with your money. Furthermore, in today’s world, getting financial advice from a professional has become extremely affordable – so there is no reason you should avoid it.