If you have considered investing your money in stock or in some sort of plan outside of your 401K, then you should consider hiring a financial planner or investment advisor. There are distinct advantages to hiring a company or an individual to act as your financial planner. Generally people who are offering these services have access to a wide variety of investment options. They should be able to explain the risks related to each investment option to you. They should be able to help you plan according to your individual needs.
There has been a movement of people doing their own investing through online companies. This can work for some, but if you are not familiar with the market, or do not understand the differences between mutual funds and annuities, then it may not be the best choice for yourself and your family. You do not want to constantly be second guessing what you are doing with your money, or pulling out at the wrong times.
If you are just beginning to invest, then it may be intimidating to begin meeting with a financial planner. You may worry that you do not have enough initial capital to begin investing, but many companies can start accounts with as little as five hundred dollars. You may also be worried that you will not understand what your planner is talking about, and as a result feel stupid. You should never feel stupid, and you should never invest your money in something that you cannot understand.
As you search for a financial planner, you should approach it the same way you would if you were looking for a doctor. You should ask people you trust for referrals. You should ask for references, and you should interview several people before deciding on someone. You want someone or a company that has your best interests in mind. Your financial planner should be willing to explain the different options to you until he is sure that you understand. You should not feel pressured into purchases, and you should invest in a wide variety of options.
Future blogs will cover the different types of investments, which are available to you. You should always study out these options, and decide for yourself whether or not they will help you meet your needs and your goals. You should also feel that you are in control of your money.