Do I NEED FINANCIAL ADVISOR?
Introduction
We as humans often have this mindset, why we need to spend money when we ourselves can do. And the same mindset we can experience when it comes to investing. Why pay for financial advisors when we could manage our money ourselves?
In addition, we also think we have access to plenty of information on the web. Then why we need financial advisors? But, the information is so vast that we might miss out few points, which might be important.
Before we look into why we need financial advisors, Let’s answer these questions:
Do we fix our own air conditioner, do we repair our physical appliances on our own, do we fly our own plane?
No…right??
We all seek for professional help who are more educated and experienced. And we feel contented with their services. The same will apply to our finances. We need someone who is a pro and can help and guide us through.
Who is a financial Advisor
- Financial advisor are trained and experienced financial professionals who advice and guide client’s decision around money matters, personal finances and investments.
- They help individuals & businesses set their short and long term financial goals and help them in achieving their financial goals by providing strategies and ways in creation of more wealth, reduction of cost or elimination of debts.
Need for Financial advisors
1. Help in understanding your investment needs and chalk out the financial plan :
Market keeps fluctuating and financial advisors are well equipped with tools and strategies to keep you on track.
Even when your investments have been put in place and are running to plan, they should be monitored in case market developments or abnormal events push them off course.
You can ask a financial adviser to keep a watchful eye on your investments.
They can assess their performance against their peers, ensure that your asset allocation does not become distorted as markets fluctuate and help you consolidate gains as the deadlines for your ultimate goals move closer.
2. Keep you on track :
Market keeps fluctuating and financial advisors are well equipped with tools and strategies to keep you on track.
Even when your investments have been put in place and are running to plan, they should be monitored in case market developments or abnormal events push them off course.
You can ask a financial adviser to keep a watchful eye on your investments.
They can assess their performance against their peers, ensure that your asset allocation does not become distorted as markets fluctuate and help you consolidate gains as the deadlines for your ultimate goals move closer.
3. Help in choosing the right investment options :
Competent financial advisors are qualified. They undergo several trainings and carry certifications to secure the title of a financial advisor or an investment advisor.
Experience really is the best teacher. A good financial advisor has weathered the ups and downs of the market and other various investment vehicles, time to time.
It is better to work with a professional who can manage your wealth under different circumstances and variables in the best manner possible.
A financial advisor brings with him/her, expertise about the financial markets as well the experience on to handle financial problems and crises. And thus, engaging a financial advisor to help with building a portfolio, chalk out your goals and help track it, could be a good idea.
4. Financial Expertise :
Competent financial advisors are qualified. They undergo several trainings and carry certifications to secure the title of a financial advisor or an investment advisor.
Experience really is the best teacher. A good financial advisor has weathered the ups and downs of the market and other various investment vehicles, time to time.
A financial advisor brings with him/her, expertise about the financial markets as well the experience on to handle financial problems and crises. And thus, engaging a financial advisor to help with building a portfolio, chalk out your goals and help track it, could be a good idea.
It is better to work with a professional who can manage your wealth under different circumstances and variables in the best manner possible.
5. Periodic review of your portfolio :
Once your investment plan is in place, you’ll receive regular statements from your advisor updating you on your portfolio.
The advisor will also set up regular meetings to review your goals and progress, and to answer any additional questions you may have.
A financial advisor helps you monitor and reassess the investment performance as you may not always have the time to do it. Regular monitoring of your investment portfolio is necessary to ensure alignment of your investments with your financial goal.
6. Revision of your portfolio :
An investment portfolio needs review and reallocations depending on the market situation and changing needs. The need for portfolio revision arises when an individual has some additional money to invest and wants to have change in investment goal.
Depending on the cash flow, an individual can modify his financial goal, eventually giving rise to changes in the portfolio i.e. portfolio revision.
In such situations, an advisor would suggest revisions on the basis of his expertise and market situations.
7. Does more than just invest money :
Some people think that a financial advisor’s only job is to invest money. While that is one of their responsibilities, it is not the only one. They can also work with you on a wide range of other financial tasks:
Rebalancing your investments
Tax planning
Estate planning
Long-term planning
Spending strategies
Conclusion :
Although there is a plethora of investment information on the internet, too much information is not necessarily a good thing. How do you determine what information is good? Do you have the time or the background knowledge to sift through this vast amount of material? A good Corporate Finance Consultant can do all the heavy lifting for you, so you can spend more time doing what is most important to you—living life.
Life is busy and there’s no doubt that your day is full of stressors. Working with a financial advisor can help alleviate some of those worries.
For example, when a doctor appoints a financial advisor for himself, he/she would be able to spend and focus more on research of new medicines and techniques in his/her field wherein the financial part can be taken care by the financial advisor who in turn will show his/her expertise. Thereby resulting in a productive result for both the professional with greater benefits.
