Investing in the stock market is an effective strategy for growing your wealth and maximizing your assets. However, it’s challenging to navigate the various ups and downs that occur. Keep reading to learn about the advantages of working with a financial advisor for investment in the long run.
Investing is an essential tool for individuals because it allows them to place money in different financial assets with the hope of generating a return on that investment.
Having an investment portfolio enables people to diversify their assets and put their finances in various channels, including stocks, bonds, and real estate. This helps spread out the risk and minimize potential losses when market downturns occur.
Finally, a well-designed strategy creates passive income streams that investors could leverage later in life. A quality return on investment helps pay for healthcare and quality-of-life expenses after you retire.
The market experiences periods of upswings and downturns. Trying to manage these times on your own could cause you to make the wrong decision. Here are some reasons why it makes sense to work with a financial advisor for your investment needs:
Some investors believe they can properly time the market to maximize earnings. However, this is an impossible task because it requires you to do the following:
Nobody can predict the future, but working with a professional financial advisor helps provide the guidance you need to safeguard your weather from market turbulence.
Regardless of what experts try to say, no one can predict when turbulence will occur, and no one can see when it will stop. This makes waiting for the market to reach its bottom before reinvesting impossible.
A recent Charles Schwab study analyzed five different strategies and compared them to staying out of the market and waiting to reinvest created the worst return. This means you’re better off holding on to your investments and waiting for a turnaround.
History is an excellent indicator of future trends, and most periods of market recessions have been followed by three- and five-year windows of favorable returns. Withdrawing your funds during turbulence only locks in your losses, while staying committed usually leads to good results.
Market downturns are painful, but previous decades illustrate that selling your position can hurt even more over the long term.
Working with a reputable financial advisor provides key insight into traditional market trends. Having a balanced portfolio of stocks and bonds has not produced a negative return over any five-year period since the late 1970s. With a well-structured investment plan, the likelihood of experiencing a negative return is low.
Knowing the difference helps you make the right decision for your long-term wealth. Check out our latest blog and make the best choice for your family.
Staying involved in the market over the long run, especially during turbulent times, requires discipline and an acute knowledge of long-term trends. Partnering with a reputable financial advisor gives you the support you need to navigate downturns and enhance your financial flexibility.
Hobart Wealth understands the importance of protecting your portfolio from risk and offers wealth management solutions that leverage hybrid approaches that help us adapt to the latest trends and keep your dream afloat. Our solutions include the following:
You can’t predict where the market will be in five years, but it will have an impact on your retirement plans. Hobart uses an active investment strategy that leverages fundamental and technical shifts in the economy. We track the latest trends to identify opportunities to help grow your wealth and control risk.
Many advisors adopt a set-it-and-forget-it approach to their passive investments—not Hobart. We regularly review market trends and evolving economic factors to develop a model that enables us to adjust over time.
Hobart understands financial security means something different to each person. We offer holistic wealth management solutions that encompass all areas of your life, including:
https://hobartwealth.com/wp-content/uploads/2023/07/weekly_wealthogist_logo-1.png
2550
3300
Chris Hobart
/wp-content/uploads/2022/11/Dark-Logo.png
Chris Hobart2024-04-24 09:54:102024-04-24 09:54:12The Wealthologist Weekly – The Significance of Stock Market Resilience
https://hobartwealth.com/wp-content/uploads/2023/07/weekly_wealthogist_logo-1.png
2550
3300
Chris Hobart
/wp-content/uploads/2022/11/Dark-Logo.png
Chris Hobart2024-04-17 11:14:432024-04-17 11:14:45The Wealthologist Weekly – Stock Earnings
https://hobartwealth.com/wp-content/uploads/2024/04/Young-couple-looking-over-financial-plans-at-home.jpg
1250
2000
AMG
/wp-content/uploads/2022/11/Dark-Logo.png
AMG2024-04-01 14:49:502024-04-27 15:25:15Stay on the Right Track With These Financial Planning Strategies
https://hobartwealth.com/wp-content/uploads/2024/04/Couple-using-computer-to-plan-for-retirement.jpg
1250
2000
AMG
/wp-content/uploads/2022/11/Dark-Logo.png
AMG2024-04-01 10:52:322024-04-27 15:25:15The Retirement Planning Checklist
https://hobartwealth.com/wp-content/uploads/2023/07/weekly_wealthogist_logo-1.png
2550
3300
Chris Hobart
/wp-content/uploads/2022/11/Dark-Logo.png
Chris Hobart2024-03-25 16:05:002024-03-25 16:05:02The Wealthologist Weekly – The Magnificent 7 Stocks
https://hobartwealth.com/wp-content/uploads/2023/06/live.png
2550
3300
Chris Hobart
/wp-content/uploads/2022/11/Dark-Logo.png
Chris Hobart2024-03-15 11:43:052024-03-15 11:45:03The Wealthologist Live – February 2024
https://hobartwealth.com/wp-content/uploads/2023/06/live.png
2550
3300
Chris Hobart
/wp-content/uploads/2022/11/Dark-Logo.png
Chris Hobart2024-03-15 11:41:402024-03-15 11:45:51The Wealthologist Live – January 2024
https://hobartwealth.com/wp-content/uploads/2023/07/weekly_wealthogist_logo-1.png
2550
3300
Chris Hobart
/wp-content/uploads/2022/11/Dark-Logo.png
Chris Hobart2024-03-15 11:39:102024-03-15 11:39:12The Wealthologist Weekly – Are We in the Middle of a Debt Spiral?
https://hobartwealth.com/wp-content/uploads/2023/07/weekly_wealthogist_logo-1.png
2550
3300
Chris Hobart
/wp-content/uploads/2022/11/Dark-Logo.png
Chris Hobart2024-03-15 11:38:122024-03-15 11:38:14The Wealthologist Weekly – The Federal Reserve’s Next Move…
The Wealthologist Weekly – Bull Market Vs. Bear Rally