A good financial advisor is like a stand-by asset. It can help in saving thousands of dollars but most people find it useless to spend a sum of money on the asset which will not be used regularly. Many of them end up losing a chunk of their invested money, which could otherwise have been saved if they had hired a financial advisor. Most people ignore the existence of a financial advisor
A financial advisor can never be associated with a particular field, he is just there to save your money. While you are busy expanding your business, you will need a financial advisor who will manage your money in the most effective way.
Role of a financial advisor
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A financial advisor is an all-rounder. He can act as your Manager, Planner, Educator or even your Partner. As a planner, he can help you accomplish a future target like owning a mansion or buying a luxury sedan. As a manager, he can handle your accounts and investments. Like a teacher, he will educate you about the best investment options and how you can maximize your savings and returns.
Like a partner, he will sit down and make a financial plan to cover all the important matters. He is basically the man who can save you during the crisis and also help you achieve those distant, almost non-attainable goals with careful planning and smart execution.
Why do we need them?
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A Financial Advisor will help you to find better investment opportunities. He will suggest ways to utilize your idle funds better. He will make a financial plan for you which covers your current financial position and highlights your tolerance levels against a particular type of risk. He will also rectify any mistakes that you are making so as to secure a brighter future for you and your family.
They constantly monitor your finances and you can be assured to receive regular statements regarding your investments. You can discuss your goals with him and also periodically reassess these goals. If you see an upcoming significant change in your life, you can discuss the impacts and take measures to mitigate the risk that change may bring forward.
Cost of a Financial Advisor
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The cost and payment to a financial advisor depends on the negotiation that you both have agreed upon. It may be periodic or on a per-transaction basis. It can also be a percentage of the amount you pay for buying an asset. It’s very important to understand that low cost drives returns in the longer run. So try and settle on the minimum possible fee structure and earn the most out of him.
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Not all of us need a financial advisor. If you are good at managing your finances, you are better off without spending on a financial advisor. But if you are weak at it, you must employ a financial advisor to manage your funds. He can help you in avoiding mistakes, seize the hidden opportunities and can provide you with the will to hold on during rough times.
In every field experience matters. Not every advisor possesses the same level of insight or the ability to sniff the bad during the good times. So you must be careful and employ a person who is adept and is capable enough to manage your level of finances. You must check his/her credentials and negotiate the fee structure that you are going to pay. If you are bad at managing your funds, you must hire a financial advisor to keep you at bay from all the risky situations.