Using an investment consultant for your business

What can an investment consultant do for your business?How can an investment consultant help your business and do you really need to use an investment consultant for your business?

The following is what an investment consultant will do for your business, no matter what your financial status is at the time, what your financial goals are, and what your financial and investment philosophy is.

1.An investment consultant should act like your business' external CFO.Your investment consultant should always have the situation and the best interests of your business in mind at all times.

2.An investment consultant will design an investment plan that is tailored particularly for your business.This customized investment plan will take into consideration your business' current financial status, your business' financial goals, and your ability, need, and willingness to tolerate investment risk.You should also ensure that your investment consultant designs an investment strategy that is intended to minimize your business' tax-burden.There are a number of different investment options available that can cut down on your tax burden.

3.An investment consultant can help ensure that your investment strategy is consistently implemented across the board and throughout time.The problem with individuals and businesses managing their own investment plans is that too often they make serious changes of course on a regular basis.This erratic behavior can only damage the performance of your investment plan.

Your investment consultant will regularly monitor your investment plan and will rebalance your investment plan periodically as needed.Your investment consultant will also make sure that tax-loss harvesting is taking place.A superior investment consultant for your business will always be on the look-out for any opportunity to harvest any losses and any situation that might require rebalancing to one degree or another.

4.Your investment consultant for your business can help temper your emotions.One of the main reasons for underperformance of investment plans and investment portfolios is that people act on impulse and on emotion.An investment consultant for your business can provide a level and unbiased opinion that will be the voice of reason in moments of stress or possible over-excitement about hot trends in the stock market.Investment success is not all about guessing what the next hot stock will be and when the best market timing is; instead, investment success is more long term in nature, and steady in its outlook.An investment consultant for your business can provide this long-term outlook in the face of any emotion or impulse.

5.Your investment consultant will be in charge of researching the state of your investments and the markets.A superior investment consultant will be constantly researching the state of investing, including empirical knowledge and theoretical knowledge about investments.A superior investment consultant will help you fine tune and adjust your investment approach and portfolio based on new-yet proven-approaches and theories about investments.

6. You're running a business.You can't keep track of the constant flux of the IRS and federal tax laws.Instead, you hire an investment consultant for your business who will track the changes in federal tax law for you.A superior investment consultant for your business will keep track of federal tax law and will change your investment plan as is needed.

7.Investment consultants can help you access the best mutual funds that might otherwise be off limits to you because they are only institutional class.For example, you can only access Dimensional Funds through a professional investment consultant.So look carefully and choose an investment consultant with a strong track record who can share your investment philosophies and your financial goals.