Forbes list of the top wealthiest people in the world is evidence enough to prove the might of the stock market. And nowadays with the growth of automated trading software like the Q Profit System, click here to know more, the chances of making money seem a lot simpler and within the reach of everyone. If it was that simple why isn’t everyone who invests in stocks or uses an automated software making money as expected? The business of dealing in stocks is a complex amalgam of mental acumen, market sense, and risk-taking behavior. If you wish to enter this fascinating field, than you need the help of an investment advisor.
Who is a registered investment advisor?
Investment advice can be given to anyone and everyone but what counts comes from the horses’ mouth – a Registered Investment advisor. This group of people is professionals registered with the Securities and exchange commission. The investment advisor takes your risk profile into consideration and presents to you investment assets suitable for your specific situation. Their job doesn’t end there; they monitor your investments and provide timely advice on how to tweak it based on the current economic and financial scenario.
What is the fee of an RIA?
RIA’s usually claim a percentage of the investment as their fee. All financial dealing with the RIA must be transparent and above board.
So, do I really need an RIA?
If your investments are small and you have the much-needed expertise in the field and the time to monitor your assets, choose investments and make the necessary changes when the market is volatile then you don’t need the advisor. But when the stakes are high and you have specific goals in sight a Registered Investment advisor becomes a necessity. Their knowledge of the market and its trends in a changing economic scenario will help you in managing your assets wisely and with minimal losses.
Benefits of an RIA
- Provides an expert view on what to buy and what to sell and when to do that and get the best deal within the given circumstances
- They can save you time
- Help plan retirement
- The chances of better returns are high.
Risks of an RIA
- Fees can be expensive
- They might not have your best interests at heart as many works on a commission basis with investment products.
Consider your specific needs and capabilities and the time that you can allocate to manage your investment portfolio and narrow down on a financial advisor of repute. Expert advice is always beneficial.