With the rise of online trading companies, it has become increasingly evident that investing and financial well-being weigh heavily on the minds of many Americans. These companies offer the promise of super-easy investing and outstanding returns.

Unfortunately, that is only half the picture when it comes to a solid long-term investment strategy. In reality, it takes much more than a few great stock picks along the way. However, working with a reputable financial advisor can help you make wise investment decisions and help you keep a well-rounded investment portfolio.

Here are a few reasons why working with a financial advisor can help you make smarter investment decisions.

The economy is in a constant state of flux. A balanced portfolio allows you to spread your risks so that your investments are better able to weather the up and down roller coaster joyride of the modern market. Retirement planning is a marathon, not a sprint. It involves many investments focused on long-term growth.

Your financial advisor can help you understand the value of a diverse portfolio and educate you on making the most of your diversification efforts.

2. Tax Implications

Different investment actions you take can substantially impact how much you owe in taxes, either in the current tax year or when you retire. Investing with a tax-minimization mindset can save you piles of money now and when you retire.

Working with a financial advisor gives you access to that professional’s expertise in reducing your tax burdens while planning for and during retirement. In addition, tax laws are continually changing, and it helps to have someone in your corner versed on these changes and their financial implications.

3. Penalties and Fees

Any action you take when investing can result in substantial penalties, costly fees, fines, and more. If you don’t understand these investments’ potential risks, you might end up paying more than you could conceivably gain.

Financial advisors can help you avoid the many pitfalls you’ll encounter along the way once you begin investing – saving you untold amounts of money in the process.

4. First Steps

Before you begin to make long-term investments, it’s best to establish an emergency fund for yourself. This fund should include enough money to cover three to six months of your current living expenses in an easy-to-access account that is federally insured. Savings accounts or money market accounts from the credit union are great options.

Then, it is time to speak with a financial advisor about your investment options. Even if you want to take advantage of these online trading opportunities, your financial advisor can be an amazing resource. They are there to help you make informed decisions that will be tax-friendly, shield you from unnecessary risks, and keep you on track to meet your retirement goals. 

We’re Here to Help! 

As your credit union, we’re committed to your financial success. We have many products to facilitate, encourage, and even automate savings for emergency funds, specific goals, and retirement investments.

If you haven't already, get to know our Wealth Management & Private Banking teams, both of whom can help you navigate the world of financial planning in complementary ways.