• Peter Newman, CFA

6 Scenarios Where You May Need an Investment Expert

The more complex your financial life and portfolio becomes, the more likely you will benefit from outsourcing your wealth management. Having a lot of money is not easy to manage efficiently. A qualified financial professional can do research unique to your situation and guide your decision process to ensure your wealth is managed in the most efficient way possible.


Perhaps you’ve hired a financial advisor to develop a plan towards your financial goals. But now you are wondering what the next step is towards building and preserving your wealth. This is where an investment expert could lend a hand.

You’ve written down your financial goals and discussed them with your spouse or partner. Now you are wondering what the next step is towards building and preserving your wealth for future generations. This is where an investment expert or wealth manager could lend a hand.

Investment advisors are financial professionals that help clients select and manage specific investments. They can explain larger market trends and outline the pros and cons of alternative investments such as private equity, private credit and real estate. They also have a fiduciary responsibility to determine whether investments are appropriate for each individual client. Investment advisors sometimes offer financial planning services and may also be referred to as wealth managers.


Below are examples where an investment advisor will be able to work with you to identify your best financial moves. 

  1. You just inherited several rental properties, farmland in another state, mutual funds in a brokerage, and an IRA account. You feel overwhelmed because you're not sure how to decide what to keep or sell.  

  2. You are offered the opportunity to sell ESOP shares back to the company and diversify the proceeds into your 401k or IRA. You aren’t sure whether to sell back the shares. If you do sell the shares back, you aren’t sure what to buy in your IRA. 

  3. The company you work for recently sold and you received a check for $2.2 million for your share of ownership. You also received  an offer to stay on and work for the new ownership. You're not sure what to do with the cash you received. 

  4. Your law partner just told you about a hot local real estate investment fund. You don’t know if you should invest and are not sure whether doing so fits with your financial goals. 

  5. The company you work for just completely changed the lineup for its 401k funds. You don’t know whether to invest in a target date fund or an international stock fund. All the options sound like pea soup but you know you need to keep saving for the future and want to make an informed decision. 

  6. Your wife’s inherited trusts are managed by three different investment managers. You have confidence in one of them but aren’t sure about the performance of the other two. Moreover, your family business is starting to take off and you expect your income to double in the next 18 months. 

What do these six scenarios have in common? 

Each of these six individuals found themselves in a complex situation requiring a lot of time to understand. While they may have fared okay without seeking expert investment advice, the trade off is time and confidence in how well they could navigate the complexity of their unique circumstances. Hiring an expert could make a big difference in lowering their taxes and improving their investment returns and peace of mind. 


What is the best indicator you may want to seek the advice of a financial expert?

If you are making decisions about investing and preserving your wealth, then it is time to seek a financial planner or wealth manager who is a Chartered Financial Analyst (CFA) charterholder.


What questions should you ask a wealth manager you are considering hiring? 

Next week we'll be exploring this question. If you would like to receive notification of future blog posts, please subscribe here.  


Final thought.

Do you have a fair knowledge of investments? Do you enjoy reading about financial markets and researching specific asset classes? Do you have the time to monitor, evaluate and make periodic changes to your portfolio? If you do not have the fortitude or interest to keep up to date on all the changes in the investing landscape, then I strongly recommend seeking the guidance of a wealth manager who is a CFA charterholder and is truly an expert. 


Schedule a call to learn more today.


You may also be interested in reading:

5 Scenarios Where You May Need A Financial Advisor



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About the Author

Peter Newman,CFA, is the president of Peak Wealth Planning. He offers financial planning, investment management, retirement income, insurance and estate planning advice. Peak Wealth is a fee only financial advisor based in Champaign, Illinois.



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