{"id":2964,"date":"2015-09-29T21:27:58","date_gmt":"2015-09-30T01:27:58","guid":{"rendered":"http:\/\/162.223.13.186\/~zacksim\/can-an-advisor-manage-better-than-me\/"},"modified":"2022-02-26T13:23:03","modified_gmt":"2022-02-26T13:23:03","slug":"can-an-advisor-manage-better-than-me","status":"publish","type":"post","link":"https:\/\/zacksim.com\/blog\/can-an-advisor-manage-better-than-me\/","title":{"rendered":"Can an Advisor Manage Better than Me?"},"content":{"rendered":"

This is the first article in a twice-monthly new series from Mitch Zacks answering your individual portfolio related questions.<\/em><\/p>\n

This week, Orlando, FL asks \u201cCan an Advisor Manage Better than Me?\u201d<\/strong><\/p>\n

I don\u2019t like to answer a question with a question, but in this case you might ask the four questions below to gauge if an advisor might do a better job managing your investments:<\/p>\n

1)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0What is your long-term track record?<\/em><\/strong>\u00a0It\u2019s quite possible \u2013 and perhaps likely \u2013 you can outperform your advisor in a given year. You pick good stocks, buy and sell at advantageous times, post a good return. But, the real question (and what matters most to investing success) is –\u00a0can you string together your successes over 10, 15, or even 20+ years\u00a0<\/em>to generate a competitive long-term return? If you don\u2019t have a long-term track record, but your advisor does (and it\u2019s strong), you might consider being partial to the value of his or her proven experience.<\/p>\n

2)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Do you have a habit of selling stocks during periods of volatility?<\/em><\/strong>\u00a0I can\u2019t tell you how many times I\u2019ve seen investors sell in a market choppy market, even when fundamentals were strong. This often cause a lot of self-inflicted financial pain. A good advisor is trained to focus on the long-term and avoid acting on emotion. In that sense, he or she can be useful in preventing you from making emotionally-driven investment decisions that can adversely impact your total return over time.\u00a0\u00a0<\/em><\/p>\n

3)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Do you have a disciplined investment strategy that\u2019s based on extensive quantitative research?<\/em><\/strong>\u00a0Making informed investment decisions involves much more than using the news or financial publications as sources. Your advisor will have a research team (if they\u2019re good) that is constantly evaluating the markets and making decisions over time \u2013 ones that result in competitive long-term returns. Would you have a similarly robust research process available to drive your portfolio strategy? If not, then your advisor can likely manage better than you.<\/p>\n

4)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0How much time can you devote to managing your portfolio?<\/em><\/strong>\u00a0Your advisor\u2019s full time job is to monitor the markets, review your goals and objectives and manage your portfolio accordingly. If you spend as much time, or more, managing your own portfolio, then doesn\u2019t that also mean you\u2019re sacrificing some of the retirement benefits you\u2019ve worked so hard for? Managing your portfolio full-time is almost like taking-on another full time job, which kind of defeats the purpose of retirement.<\/p>\n

Bottom Line For Orlando, FL (and others with the same question!)…<\/strong><\/p>\n

I think a majority of retirees \u2013 who didn\u2019t spend their careers in the financial industry \u2013 could benefit from the help of an experienced investment manager. The key is to remember that, if your objective is to make your assets grow and work for you over the course of your retirement life, the amount of investment decisions you\u2019ll need to make along the way are not only numerous, but also very complex. The proven experience of an advisor can go a long way. \u00a0\u00a0\u00a0\u00a0<\/em><\/p>\n

– Mitch<\/em><\/p>\n

\n

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.<\/span><\/p>\n

Zacks Investment Management, Inc. is a wholly-owned subsidiary of Zacks Investment Research. Zacks Investment Management is an independent Registered Investment Advisory firm and acts an investment manager for individuals and institutions. Zacks Investment Research is a provider of earnings data and other financial data to institutions and to individuals.<\/span><\/p>\n

This communication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any securities or product, and does not constitute legal or tax advice. The information contained herein has been obtained from sources believed to be reliable but we do not guarantee accuracy or completeness. Zacks Investment Management, Inc. is not engaged in rendering legal, tax, accounting or other professional services. Publication and distribution of this article is not intended to create, and the information contained herein does not constitute, an attorney- client relationship. Do not act or rely upon the information and advice given in this publication without seeking the services of competent and professional legal, tax, or accounting counsel.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

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