What are the Benefits of Hiring a Financial Advisor?
So, what can a financial advisor do for you?First, the financial advisor will get a copy of your statement and even if you won’t look at it, they will. A good financial advisor will be proactive and reach out to you with good or bad news, strategies and ideas. This work behind the scenes is part of the many reasons why financial advisors cost money and a good one should be considered an investment rather than an expense. They are often the difference between your financial success and failure. Investing is not a get rich scheme and it takes time, patience and dedication to be successful.
Second, one of the roles a financial advisor assumes is to reduce your financial stress and make the load lighter. They will help you simplify your financial options and sharpen the focus on your short and long term goals. They are there to help you avoid making costly mistakes by challenging your thinking and holding you accountable. The advisor should make you smarter and help you focus on the facts rather than the sales pitch.
Third, a good financial advisor will provide you with expertise and knowledge you may not have. Gamma, Beta, Standard Deviations, risk weighting and P/E ratios are all concepts that many people haven’t looked at since the SAT’s. However, an advisor will take the time to sit down with you and explain what they mean to you and how they may impact your investment portfolios. These types of discussions with advisors help people avoid taking unnecessary risk and focus on their long term goals.
Additionally, an advisor will work with both your estate planning attorney and CPA to help reduce taxes, avoid taking unnecessary risks and protect the things you’ve worked so hard to accumulate. There is a synergy between these professions and each have an impact on your overall financial health and future legacy. By hiring a financial advisor, you will be hiring a personal advocate focused on pursuing your best interests. Afterwards you can focus on the rest of your life and make it more enjoyable.
By InvestorGuide Staff