Do Women Need To Hire A Financial Advisor To Invest in Stocks?
Question: Is it necessary for women to hire a financial advisor to invest in stocks? Not necessarily! Women are fully able to create a stock portfolio .
A woman could make more money by choosing her “own” stocks to invest in, and in the process, not have to pay fees to a financial advisor or broker. These fees can take an enormous bite out of an investor’s returns long-term. Most women are as financially knowledgeable as men. As a matter, of fact numerous studies have shown that women are better investors than men. However, if women do feel the need to hire a financial advisor this article will explain what they should look for in an advisor.
Seek An Advisor That You Can Communicate Well With
Women are excellent communicators and should seek a financial advisor that communicates well with them and that they feel comfortable turning their money over to. If a woman does choose to hire a financial advisor she should seek one that does not intimidate her. Women need an advisor that explains complex information to them in a simple and clear manner. Women do not want an advisor that tries to talk above their head. This only serves to undermine their confidence.
Many financial advisors only serve to confuse, both men and women, in an attempt to show off their investing expertise! Many advisors use “fancy” and confusing financial jargon. This makes the average woman think that she has to hire a financial advisor in order to invest. This is not necessarily the case!
Women Need To Take An Active Role In Their Finances
Many single professional women, widows and divorcees hire financial advisors. These women feel overwhelmed when it comes to making their “own” financial decisions. Why? Because the majority of the time these women didn’t take the time to educate themselves in financial matters.
Moreover, there are some women that do not take an “active” role in their family’s finances at all. Many let their husbands handle all of the financial decisions. This is not a wise decision on the woman’s part! Both the husband and wife should be fully aware of the family’s finances.
Certainly, many women could have avoided not taking a more active part in their financial well-being! There is a wealth of financial information, today, on stocks, available online. In addition, so much knowledge can be gained by reading, reading, and reading! “Knowledge is Power” Ladies!
If You Do Decide On Hiring A Financial Advisor
Women who lack the time, due to their busy schedules, to invest themselves, often hire a financial consultant. If this is the case, a woman should make sure they choose the “right” one. They should seek an advisor that will share their knowledge in an efficient manner.
If you do hire a financial advisor make sure your money is in the “right” place with the right advisor! Your advisor should be able to generate decent returns for you and, also, be able to handle any market fluctuations well. And, make sure you are also getting adequate attention for your money.
In selecting a financial advisor it is important to choose a fee-based financial advisor. Make sure you compare rates. These advisors usually charge an hourly or flat fee. Try not to choose an advisor that is paid on commission. Be aware that both types of advisors charge differently.
Moreover, women should feel free to ask questions of their advisors. Financial advisors should encourage women, and men, to ask questions and the advisor should answer them in a patient manner. Women, especially, want a financial expert, and an environment, where they feel comfortable asking questions.
It is important that financial advisors understand the needs of their female clients! Knowing their future needs will help the advisor design the “right” portfolio for their female client. Perhaps their goal is saving to pay for their daughter’s wedding, their child’s college, or their future retirement. The right financial advisor should also take into account the woman’s risk tolerance and her time frame for investing.
In closing, women do not necessarily need to hire a financial advisor. Women could increase their returns by becoming a DIY, do-it-yourself, investor and choosing their own investments! It is smart to be your own financial advisor instead of turning your money over to a financial expert. Make it a priority to take the time to learn how to invest your own money! Doing this would eliminate fees that can add up over time.
However, if you should decide to hire a financial advisor, make sure they are objective when making recommendations for you. You want the “pros and cons” of each investment option explained “fully” to you. Women should aim for a fee-based financial advisor that will charge a flat fee. And, don’t hesitate to ask lots of questions! Find a financial advisor that you can communicate well with!
