In this day and age of technology and financial success, money management is a skill that many wealthy people possess. It is also as important as having money to invest in a stock or asset or indispensable as guts and risk-taking behavior. Therefore, as a businessman, stock owner, or investor, you are in no doubt needing a financial advisor. You might think as someone who is about to or has been handling money, you’re already qualified. That couldn’t be more false.
Many people, especially if they’ve possessed just a small part of monetary knowledge and know-how, often conclude they can fend for themselves in shark-infested waters. But did you know that according to a survey (read more), Americans have answered a survey, and only 70% of them have self-proclaimed to be financial experts? What’s disappointing is the fact that only 30% of those people answered the basic finance questions correctly.
What’s A Financial Advisor?
In this field, you’ll need a guiding hand to lead you to success and avoid pitfalls, especially if you’re not a math wiz. That’s the whole reason why many people, even those already seasoned investors and businessmen, still have someone else they can consult with. That person handles all financial documents, transactions and often gives their two cents on investments, loans, and many more.
They are professionals that had studied and taken the exam to be a certified, licensed consultant. This person is called a financial advisor, or advisers, as one or two can be hired. They are often employed for other things as well, like portfolio management.
Reasons To Hire A Financial Advisor
1. They Can Give You Wise And Helpful Advice
Though this isn’t the main nor the most common reason why financial advisers are hired, them giving advice about your finances is still a beneficial addition to their job description. For a lot of people, their financial advisor can be one of the most influential people in their business. Their decision can be influenced by them, which can ultimately make or break their company. Their advice, therefore, can be considered the most rewarding.
Business people or regular consumers are often easily confused with a lot of things going on n the business industry. There are tons of investments, insurances, and loans that they can get overwhelmed, especially those just starting out. Financial advisers act as teachers then, educating their clients with the proper knowledge of the situations demands of them. This can result in many right and successful monetary moves.
2. Help You Focus On Long-Term Goals
To see a larger return, you need to look at investments from a long-term perspective. Your advisor will help you maintain this focus by building you a fool-proof financial plan, one that can withstand falling markets, have low-interest rates, and other money crises. When you’re alone, it’s easy to panic when the market falls, and with it, your account.
This is where financial advisers shine. They’ll be the ones to give you meaningful advice, like keeping yourself together and making sound decisions despite the troubles. They’ll guide you through this pandemic, where 35% have decided to make no changes in their portfolio. With their established knowledge, they’ll be able to guide you to the right decision.
3. Protect Yourself And Your Loved One
When you have someone knowledgeable on your side, it’s easy to feel safe and secure in your position. Around the world, people have expressed hardship of losing their job (link: https://www.ilo.org/wcmsp5/groups/public/—ed_protect/—protrav/—travail/documents/publication/wcms_747961.pdf) due to the COVID-19 outbreak. How an advisor can help with this is to advise and lead you to make successful decisions. They can also give you more tips on how to save and manage your money.
4. Help You Maintain Your Financial Plan
With the pandemic going on, it’s hard to balance daily finances, investments, plans, and loans on your own. Though it is a top priority, you’re putting yourself at risk, both mentally and physically. Luckily, with an advisor you can trust, these investments and loans can easily be transferred to their care. That way, you can rest easy knowing your retirement plans will still be there when you check on them from time to time.
For more information on financial advisors in Melbourne, check out Liston Newton Advisory.
