One in Four Investors Have No Financial Plan

According to recent financial research, 26% of American investors have no plan or strategy when it comes to their investment portfolio.

Almost 20% say believe they don’t need to work with professional financial planner to help them make the right investment decisions – their reasoning including not believing a plan was necessary, to feeling uncomfortable discussing finances with a stranger.

Without an investment strategy or sound financial advice investors are essentially blindly gambling with their money. Here are the top five reasons why one in four investors are making a huge mistake by not seeking investment advice from an independent financial planner:

1) Work With a Knowledgeable Person

The best reason to work with an investment professional is that you get to work with someone who has years of experience. This person can talk to you about investment opportunities that you may not have known existed. When you work with a qualified professional, you will have someone who is able to help you craft an investment plan that will meet your needs both today and tomorrow.

2) Create a Plan for Today and Tomorrow

While saving money for retirement is always a good idea, you have to make sure that you have enough money for today and in the years before you are ready to retire. Working with an investment expert can help you craft a plan that meets your needs for the rest of your life. You can create a plan that allows you to take more risk today while making sure that your risk is toned down as you get older.

3) You Can Invest Whenever You Want

Some people think that they don't have enough money to start investing. Regardless of what you have, it should be put into a fund that will grow over time. Putting even $20 a week into an investment account could leave you with tens of thousands of dollars if that money is given several years to work. If your employer provides you with a 401k, you should put as much as you can into that fund. In some cases, your employer will match a certain percentage of your contributions. Those who receive bonus checks or extra cash should deposit it immediately into a 401k or an IRA to help it grow.

4) You Still Retain Control Over Your Money

If you work with a professional, you still will have control over your money. You will always have the final say over where your money goes, if your money is to be reallocated elsewhere and whether or not portions of your portfolio are liquidated. Therefore, you have nothing to worry about if you think that a stranger is going to control your money. All an expert will do is advise you as to what you can do with your money and suggest ways to help you grow your portfolio.

5) Low Fee Options Are Available for Those Who Have Money Issues

You don't have to spend thousands of dollars a year to get the help that you need to grow your money. Many online brokers allow you to get professional help with your money for less than 1 percent of your fund's value per year. If you invest in mutual funds, the amount that you will spend will be even less than that. To further ensure that you don't spend more than you want to, you can ask for a price quote before deciding to work with someone or not.

It is critical that you talk to an investment professional as soon as possible. Whether you don't think you need an account or that an investment professional costs too much, you need to find an expert who can give you the advice that you need to help your money grow and reach its maximum potential both now and in the future.