Investment Planner

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on August 15, 2023

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What Is an Investment Planner?

An investment planner is a professional who provides expert guidance and advice on investment planning and portfolio management.

An investment planner can be an essential partner in creating a successful investment plan, helping you to navigate the complex world of investing and develop a strategy that aligns with your financial goals.

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Who Needs an Investment Planner?

While anyone can benefit from their services, certain groups of people stand to gain the most from hiring an investment planner.

Individuals With Little to No Investment Experience

Investing can seem daunting and complex, especially for beginners. An investment planner can simplify the process and guide the fundamentals of investing, such as various investment options, risk and reward, and the significance of diversification.

Individuals Looking To Maximize Their Investment Returns

If you want to grow your wealth through investing, an investment planner can help you develop a strategy that aligns with your financial goals.

In addition, they can provide expert guidance on which types of investments to choose, how to balance your portfolio, and when to buy and sell.

Individuals Approaching Retirement Age

As you approach retirement age, your investment strategy must shift towards preserving your capital and generating income. An investment planner can help you develop a plan that prioritizes these goals while managing risk.

Small Business Owners

Small business owners often have unique investment needs, including managing cash flow, planning for growth, and building a retirement plan.

An investment planner can help you navigate these challenges and provide guidance on tax-efficient investment strategies and risk management.

Corporations and Institutional Investors

Corporations and institutional investors have complex investment needs, including managing large portfolios, evaluating risk, and optimizing returns.

An investment planner can provide the expertise and guidance needed to develop an investment strategy that aligns with the organization's financial goals.

Benefits of Hiring an Investment Planner

Hiring an investment planner can offer a range of benefits for individuals looking to grow and manage their finances.

Expertise in Investment Planning and Portfolio Management

Investment planners are experts in their field, with a deep understanding of the financial markets, investment options, and risk management strategies.

They can provide valuable insights and guidance on developing an investment plan that aligns with your financial goals.

Personalized Investment Advice and Guidance

An investment planner can provide personalized advice and guidance that considers your unique financial situation, risk tolerance, and investment goals.

They can help you navigate the complexities of investing and make informed decisions that align with your long-term financial goals.

Regular Portfolio Review and Adjustment

An investment plan is not a set-it-and-forget-it proposition. Markets change, and so do your financial goals.

An planner can regularly review and adjust your investment plan to ensure it continues aligning with your goals and meeting your changing needs.

Access to a Wider Range of Investment Options

Investment planners can access various investment options, including stocks, bonds, mutual funds, and alternative investments.

They can help you diversify your portfolio and take advantage of investment opportunities you may need access.

Risk Management and Asset Allocation

Managing risk and diversifying your portfolio are critical to successful investing.

An investment planner can help you develop a risk management strategy that aligns with your financial goals and tolerance for risk. They can also help you allocate your assets to maximize returns while managing risk.

Benefits of Hiring an Investment Planner

How to Choose an Investment Planner

Here are essential factors to consider when choosing an investment planner:

Credentials and Experience

When choosing an investment planner, it is important to consider their credentials and experience.

Look for those with a professional designation, such as a Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA), as these designations indicate a certain level of expertise and knowledge.

Additionally, consider the planner's experience working with clients with similar financial goals and situations as yours.

Fee Structure and Transparency

Investment planners can be compensated in a variety of ways, including through commissions, fees, or a combination of both.

Make sure to understand how your planner will be compensated and what fees you can expect to pay.

Additionally, look for transparency in their fee structure and make sure they are disclosing any potential conflicts of interest.

Investment Philosophy and Approach

Every investment planner will have their own unique investment philosophy and approach. Make sure to understand their approach and make sure it aligns with your financial goals and risk tolerance.

For example, if you are risk-averse, you may want to work with a planner who prioritizes capital preservation over high-risk investments.

Communication and Availability

It's important to work with an investment planner who communicates effectively and is available to answer your questions and concerns.

Make sure to understand their availability and preferred communication channels, whether that be email, phone, or in-person meetings.

Factors to Consider When Choosing an Investment Planner

Working With an Investment Planner

Working with an investment planner can provide you with the guidance and support you need to manage and grow your investments effectively.

Setting Investment Goals and Objectives

Before working with an investment planner, it's important to define your investment goals and objectives.

This includes understanding your risk tolerance, desired investment returns, and investment time horizon. Your investment planner can help you clarify these goals and develop a strategy to achieve them.

Developing an Investment Strategy and Plan

Based on your investment goals and objectives, your investment planner will develop a strategy and plan that includes a diversified portfolio of investments.

They will also help you understand the risks and potential returns associated with each investment.

Regular Portfolio Review and Rebalancing

As mentioned earlier, investment plans need to be regularly reviewed and adjusted to ensure they continue to align with your goals and meet your changing needs.

Your investment planner will review your portfolio on a regular basis and make adjustments as needed.

Monitoring Investment Performance

Your investment planner will also monitor the performance of your investments and provide regular reports on how your investments are performing compared to your goals. They will also help you understand the impact of market volatility on your portfolio.

Adjusting the Investment Plan as Needed

Finally, your investment planner will help you adjust your investment plan as your financial goals and life circumstances change.

This includes making changes to your investment strategy, rebalancing your portfolio, and adjusting your risk tolerance as needed.

Final Thoughts

Choosing to work with an investment planner can help you manage and grow your investments effectively, mitigate risks, and achieve your financial goals.

An investment planner can provide guidance on investment strategies, assess your risk tolerance, and develop a tailored plan that aligns with your financial objectives.

By working with an investment planner, you can save time and money while avoiding common investment pitfalls. So if you are looking to grow your wealth and secure your financial future, consider hiring the services of an investment planner today.

Take the first step and schedule a consultation to discuss your investment goals and how an investment planner can help you achieve them.

Investment Planner FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.

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