Financial Planning

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<p style=”line-height:200%”>The need for critical self-evaluation is essential before determining on whether to use the services of a financial planner or to invest on your own. Some of the factors to consider in making this decision includes the ability read through investments and dedicate one&rsquo;s time to research, availability of time to monitor the investments of your choice and also the expertise in portfolio management. Considering the above factors, I would choose to hire the services of a financial advisor (Sinha, 2015). The next challenge would be finding the right financial planner. This can be done by checking recommendations from current or previous customers or by simply checking their track record.</p>
<p align=”center” style=”text-align:center;line-height:200%”><b>How to go about investing</b></p>
<p style=”line-height:200%”>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 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.&nbsp;</p>
<p style=”line-height:200%”>Advantages</p>
<p style=”text-indent:-.25in;line-height:200%”>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Planners have deeper knowledge of money management, especially in technical matters like financial instruments and taxes.</p>
<p style=”text-indent:-.25in;line-height:200%”>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; They save time that would have been spent on research.</p>
<p style=”text-indent:-.25in;line-height:200%”>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Some fee-online advisors charge a reasonable fee and therefore one could find extremely beneficial services at pocket-friendly costs (Sinha, 2015).</p>
<p style=”line-height:200%”>Disadvantages of Do-It-Yourself Investing</p>
<p style=”text-indent:-.25in;line-height:200%”>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; It requires a lot of time for research.</p>
<p style=”text-indent:-.25in;line-height:200%”>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; There are high chances of losing initial investment or at worse, going insolvent.</p>
<p style=”text-indent:-.25in;line-height:200%”>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lack of experience, knowledge and expertise is a huge drawback for do-it-yourself investors (Sinha, 2015).</p>
<p style=”text-indent:-.25in;line-height:200%”>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Negotiating the legal and marketing requirements can prove to be daunting task.</p>

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