Why Do I Need To Hire A Financial Advisor?

This is an age-old question — Does getting financial services worth it? Do I need a professional financial advisor to handle all types of finance-related requirements and decisions? In fact, many of us investors are in a dilemma regarding hiring personal finance services and form an opinion that they don’t need professional advice. Are you also asking the same question or struggling with the same dilemma? Don’t worry as we all are sailing in the same boat.

However, for many people, the answer is “yes” as a professional financial service can help you assist with all your financing needs in several ways. Coming back to what these financial services are and how they are helpful, this blog will help you find out answers. Let’s start by understanding their meaning.

What is a Financial Advisor?

Financial advisors or planners help/guide/counsel people/individuals on wealth or finance management along with other personal money matters. They often have specialized & accumulated knowledge in the fields of investment management, financial planning, retirement planning, estate planning as well as tax minimization, and many more. Depending on the area of expertise, they can help you with everything related to finance.

When To Seek Financial Help?

When all the essential information is available online and in books as well, you start wondering why you would need personal finance help to guide you in your money-related matters. Well, just give yourself a few minutes and ask these questions to find out whether you need a financial advisor or not.

• Do you have a sound knowledge of investments?
• Are you familiar with the opportunities & threats in mutual funds, SIPs, or FDs?
• Do you know how to use different trade finance instruments such as Letters of Credit or Bank guarantee etc?

If the answer is “No” or “a little bit/kind of”, you need to start your search for making good and result-oriented financial decisions.

Who Should Avail Personal Finance Services?

There are not any specific eligibility criteria about the age, career in a specific industry, ITR documents, or salary level. Just when you are struggling with paying your debts or depositing your checks, it is time to hire an efficient financial advisor to manage your finances. Another sign of hiring them is when you are going through a major life transition event going on such as receiving a paternal property etc. Many financial advisors charge a minimum initial investment requirement, so make sure that your budget fits into it before hiring them.

What Type Of Finance Advisor Should I Hire?

There are two types of financial advisors that you can hire — Asset Managers and Wealth Managers.

• Asset Managers — If you are seeking professional financial help to tackle all your investments in bonds, stocks, and other securities, an asset manager can help you. They can build a strong portfolio defining your financial goals, and risk ability.
• Wealth Managers — On the other hand, wealth managers are helpful for those who want to expand their existing finances. To help you create a portfolio, they can also help with your overall financial health and guide you about protecting your assets over the long term. They can also help with tax planning, estate planning, and education saving, etc.

What Does A Financial Advisor Do/Why Financial Advisors Are Important?

From dealing in stocks to retirement planning and many more, tackling several financial matters can be an overwhelming experience for corporates & investors. A financial advisor examines your overall financial situation and helps you curate a strategic plan with longer financial goals.

These points can help you understand their significance in money matters. Let’s have a look:

1. Robo-Advisors — The prevalence of more & more financial apps & websites have given rise to Robo-advisors that help you handle your investment portfolio through computer algorithms. Now you can make financial decisions without any help from a financial planner.
2. Expertise in Finance -If you are struggling with any financial concerns, these finance specialists help as well as guide you with the best and suitable methods for you. They are trained to deal with personal finance with accumulated knowledge in the respective fields.
3. Researched Planning & Execution — A financial advisor reviews all your financial documents and provides you with the necessary & suitable finance plans or funds for you to invest in accordingly. You can be assured of a strong financial base.
4. Time-saving Approach — There is no need to tell you that going through all available investment plans eats out your lots of time. Plus, it does not give you satisfactory and secured results. These financial advisors are experts in understanding and executing these tasks with reliable efficiency.
5. Reduced Stress — A financial advisor helps you mitigating or eliminating all your financial stress with their commitment, dedication, and earned expertise. Now you can focus on your business activities more efficiently.

Bottom Line

Now you can understand that hiring a financial advisor or professional personal finance services can benefit you in several ways. They are investment experts who can help you protect your assets and manage your finance flow. Keep these points in mind to achieve your future financial goals.

Stay updated with me: @Ngulminthang Lhanghal