Do you wonder if you should work with a financial advisor? Many people assume that it’s only for the rich or people that can’t manage their money. In reality, anyone could benefit from the advice and services of an advisor whether they have a lot of money or just a little. Financial advisors provide benefits that many don’t even realize until they use one and then they wonder how they ever lived without one!
Check out the benefits they offer below.
Help Achieving your Financial Goals
You have financial goals, but do you know how to reach them? Some people think they’re doing great, but never end up meeting their goals. A financial advisor helps you every step of the way. You start with goal planning. You’ll discuss what you want to achieve and why. You’ll review your timeline and any progress you’ve made thus far. An advisor then helps you properly allocate your assets so you can reach your goals. If you keep the financial advisor throughout the years you save for your goal, he’ll also help you reallocate should things go a little differently than you planned.
Professional Investment Advice
Financial advisors understand most investments and can help you make the right choices. He’ll help you determine your risk tolerance to determine if you need a conservative, aggressive, or somewhere in between portfolio. He’ll also help you understand how to diversify to reduce your risk.
Minimize Tax Liabilities
It’s great to see that your investments are doing well, but it’s not as exciting when tax time rolls around and you realize you have a lot of capital gains and therefore, a large tax liability. Working with a financial professional, you’ll learn how to structure your investments so you minimize your tax liabilities and maximize your returns.
Avoid Making Emotional Decisions
We’ve all been there. The market crashes and we think we need to bail out. Sometimes that’s the worst thing we can do. If we just stuck it out, we might have realized greater returns and not been back at square one. An advisor can help you stay there. You’ll have that unbiased person to run your ideas by and he can tell you whether you should bail or if you’re acting out on your emotions and should take a backseat.
Sometimes you just don’t have financial direction. Whether you’re in over your head in debt or you came into an inheritance and don’t know how to manage it, a financial advisor can point you in the right direction. You’ll learn how to manage your finances, what you should and shouldn’t invest, and get yourself on a good path.
Yes, it costs money to use a financial advisor, but it’s often well worth it. And with new companies like Filance offering affordable advisors on your budget, it may be a great time to give it a try. An advisor can help you get on track, stay on track, and meet/exceed your goals. Whether you feel lost or you just want a second opinion, there are many ways an advisor can help you get your finances on track. If you’re looking to get started, download the Filance app and work with an advisor today.