The choice between ‘fee’ and ‘free’

It’s usually not a tough call to decide whether to pay a performance fee or not.

Yes, we get it.

Also, rather than paying someone else to do something, you can get a greater sense of accomplishment by doing it yourself. However, when it comes to managing your investment portfolio, the decisions you make today will have repercussions far into the days and weeks ahead. The future of your finances may depend on your choices here. We’re focusing on the long-term effects here.

You should consult a financial expert to help you develop a comprehensive investment strategy. The expense of assistance should not be underestimated, but a performance charge should be avoided if at all possible. However, doing everything yourself is typically more expensive when it comes to your financial portfolio. Self-managing your portfolio might have hidden charges that can quickly add up.

Here are four of the most common causes of financial loss among expatriates:

1. One Can Invest Without knowledge

Let’s say you have one Euro and you decide to flip it nine times. There is a tie for first place among the top nine. After flipping a coin ten times, someone finally asks whether you want to gamble.

Even if you have no idea what the odds are, you should try your luck. You could assume that since heads have occurred nine times in a row, they will occur again. Make some quick cash! Alternatively, you might choose currency if you believe that it is likely to drop at this time.

However, if you have any understanding of probability at all, you’d realise that the odds of a heads or tails result from this particular coin toss remain the same at 50% each.

Investing in the same way you always have because “past returns” indicate a positive future is the “buzz because it’s always been upside” line of thinking. It’s “coin because it’s long overdue for coin” when you go with “your gut” on an investing decision.

If you had a good financial consultant at your side, the odds of making the right choice would be substantially higher than 50/50.

2. Requires No Maintenance

How many hours a week would you devote to maintaining your own portfolio? Think about how much time you’ll need to spend researching and learning about your investing choices. Oh, and don’t forget about the tax ramifications and other ways to maximise returns on your investments. And after all that, are you ready to keep your portfolio on track, healthy, and expanding with regular maintenance and adjustments?

A good financial consultant should be able to walk you through the process in a fraction of the time it would take you to do the research yourself.

3. Bet the House on Your Future

One could think that the markets are currently witnessing a gold rush with all the talk of cryptocurrencies, meme stocks, and NFTs. The timing couldn’t be better, right?

Wait a minute! You shouldn’t treat your financial future like a game in Las Vegas. At this time, it is impossible to predict the long-term performance of these novel asset classes. If you want to take a risk but are still secure in your primary investments, your financial consultant can help you navigate the waters of experimentation.

4. Procrastinate While Inflation Gains

Saving money for the future may seem like a luxury in these uncertain times. However, the value of your cash—money you haven’t invested or that is just lying in a savings account—decreases daily.

Having a financial consultant on your side can help you gain knowledge and make timely investment decisions.

Time is of the essence

If you spend 15 minutes on Instagram or TikTok, you’ll know that you can teach yourself how to build a house, fix your own plumbing or car, and do just about anything else. We here at the Expat Wealth At Work concur. We have faith in your ability to handle your finances on your own with the right amount of time, effort, and resources.

But that’s about it; the rest is a matter of time, effort, and resources. We encourage you to take on portfolio management responsibilities if you believe that doing so will be beneficial to you.

We suggest reading this article again if you decide to DIY instead of hiring a consultant due to the expense.

A skilled financial consultant will prove their worth to price-conscious expat clients by helping them save money, make the most of their investments, and provide a secure financial future for their families. Let’s talk more more if you’re interested.