What Is a Financial Advisor?
I think we can all agree that money makes the world go around, right? Right. However, most people haven’t got an inkling of an idea about personal financial management. That is where an advisor comes in. They are there to help those that don’t have the financial know-how (or the time) by using their knowledge of the economic climate to develop comprehensive (but user-friendly) strategies tailored to client-specific needs, in order to help people to navigate the (often daunting) world of finance. These professionals are university graduates with backgrounds in economics who are certified, licensed and well established.
But What Do They Actually DO? Can they help me with my personal financial management?
Now you may be thinking, “Well the umbrella term of strategizing and generality of advice is all very well, but what do they actually mean by it?”. Well, financial advisors offer specific services that are aimed at helping you plan, budget, save and build wealth among other things. They deal with your current financial plan and give you straightforward advice on how best to achieve your financial goals by helping you to manage your debt, investments, expenses, your health care plans, risk, tax and even your future retirement or estate plans. If you don’t have a plan and feel yourself floundering at words like “investment” and “risk”, fear not because a financial advisor will take all your information into account, do the research and calculations for you and then give you a clear-cut set of financial options for you to choose from.
And Why Should I Consider Hiring One?
If you are struggling to align your finances with your long term goals, if you need a plan but aren’t sure how to budget effectively. Or if the thought of managing your own investments makes you sweat – you might want to seek the help of a financial advisor. That being said, even if you are completely comfortable with your grip on financial management – it is never a bad idea to go through a professional who can guarantee you maximum investment with minimum risk!
Though it means an extra bill to pay, it will also mean that you are made fully aware of your own personal financial management system, that you are not barking up the wrong tree when it comes to what health care plan to choose or which company to invest in, and that you have the opportunity to handle your finances safely and effectively. This of course means finding a financial advisor you trust – always check the references folks!
Money makes the world go around, but you don’t need to have a degree in finance to manage yours properly. Just make sure that your chosen advisor is qualified, licensed and trustworthy – and then let the financial professionals do what they do best, and advise you!