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 the fees to a financial advisor or broker. These fees can take an enormous bite out of returns long-term. Most women are as financially knowledgeable as men. However, if they do decide to hire a financial advisor this article will explain what they need to look for.
If a woman does choose to hire a financial advisor she should seek one that does not intimidate her. Many advisors use “fancy” and confusing financial jargon. 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! This only makes the average woman think that she has to hire a financial advisor in order to invest. This is not necessarily the case!
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. 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, available online. In addition, so much knowledge can be gained by reading, reading, and reading!
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.
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, in particular, want a financial expert, and an environment, where they feel comfortable asking questions.
Women are good communicators and should seek a financial advisor that communicates well with them. They also need an advisor that explains complex information to them in a simple and clear manner.
It is important that financial advisors understand the needs of their female clients! Perhaps their goal is saving to pay for their daughter’s wedding, their child’s college, or their retirement.
Knowing their future needs will help the advisor design the “right” portfolio for their female client. The right financial advisor should also take into account the woman’s risk tolerance and time frame for investing.
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 closing, women do not necessarily need to hire a financial advisor. Women could increase their returns by becoming a DIY investor and choosing their own stocks! 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! Knowledge is Power Ladies!