With the financial forecast that we face in this day and age, for many people, reaching their financial goals can feel like a pipe dream. The price of living keeps going up, and it just doesn’t seem like there’s enough money to set aside in order to put down a deposit for a car, let alone a future home. The truth is, we could all make our money stretch a little further, and with help from the right professional, you can make your money work for you. This is where hiring a financial advisor comes into play.
In this article, we’re going to talk about the different ways that a financial advisor can help you reach your financial goals.
1. Providing smart investment strategies
Your money grows when you invest wisely, not when you remain preoccupied with staying afloat. Financial advisors can help you not only take the leap and invest your money wisely, thanks to their expertise in choosing investments that will align with your risks and long-term goals.
2. Giving tailored financial planning
When you hire a financial advisor, you’re entrusting yourself to someone who will assess your income, goals, expenses, debt and risks in order to create financial planning that is completely tailored to you. This financial planning will usually include helping you develop a strategy to help you reach your short, medium and long-term goals.
3. Stressing the need for emergency funds
As much as a good financial advisor will guide you towards wise investment decisions that will vary according to the risks you’re willing to take, they will also emphasise the importance of having emergency funds. That way, should you face any unexpected expenses, you should have sufficient funds to help soften the blow.
4. Providing accountability
One of the most important things that a financial advisor can provide you with is accountability. When you have to tighten your budget to invest in your future, looking at the short term can sometimes be demotivating. Your financial advisor should provide you with regular check-ins and progress reviews to help you stay on the right track.
5. Reminding you of the bigger picture
Everyone needs a little reminder to keep an eye on the prize from time to time. Your financial advisor will help you take a realistic look at what you’re experiencing now and help you maintain disciplined saving and investing habits to help you reach your goals.
Tips for hiring the right financial advisor
Some financial advisors will try to sell you the world and deliver on absolutely none of their promises. You don’t want to get close to retirement and find out that you actually don’t have enough to survive comfortably. So, as much as it’s on your financial advisor to deliver on what they advise, it’s your responsibility to find the right individual for the job. Here are some things you should do when hiring the right financial advisor:
Know your financial needs and reasons for hiring a financial advisor – you need to be level-headed and very self-aware in order to achieve your financial goals. The more you know about what your financial situation is and what you want to achieve in life, the easier it will be to find the right financial advisor
Know how much you can afford – always know your limits when investing, and a good financial advisor will respect your budget and place an emphasis on having enough emergency funds
Know the different types of financial advisors – there are various types of advisors out there, and knowing which one you need is very helpful when hiring one. Some of the different types of financial advisors include robo-advisors, fee-based advisors, fee-only advisors and wealth managers
Know what credentials are needed – as soon as you meet with a potential advisor, the first thing you should do is find out if they have the proper credentials
Do your research – never go with the first financial advisor you meet with, but take the time to do your research and vet them. Some of the best ways you can do research is by asking friends and family for advice and their experience, making use of online advisor matching tools and consulting with professional organisations
Ask the right questions – always go into your meetings prepared with questions to ask your potential advisor. Some helpful questions to back pocket include asking how they get paid, how they measure performance, if they are a fiduciary, how often they will check in on you and what their credentials are. How the advisor answers these questions should give you a good indication of whether or not they will be a good fit for you
A good financial advisor will also be ready with testimonials and ready to provide you with whatever you need to put you at ease. For more information or to find a financial advisor, Solace Financial Advisors can help you!
Final Thoughts
Hiring the right financial advisor can help you become a person who is well-equipped for the future and takes you one step closer to experiencing financial freedom if all things go to plan. They’re not miracle workers who can magically make those extra few dollars appear, but they can help you strategise to make the most of what you do have, go after what you want and keep you accountable. This is why hiring a financial advisor is one of the best steps you can take to reach your financial goals.
To read more content like this, explore The Brand Hopper
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