Could you benefit from a financial advisor?02/12/2021
Deciding just how exactly to best manage your finances is a big decision.
It would be unfounded to claim that anyone and everyone would benefit from an ongoing relationship with a financial advisor, but many individuals with certain circumstances may underestimate the extent to which they would be at an advantage by way of seeking professional advice.
If you’ve found yourself wondering whether or not you may benefit from an ongoing relationship with an investment advisor or financial planner, we’re here to help you best understand the ins and outs of what professional financial advice can bring to your life.
So, why exactly can seeking financial advice be so valuable?
1/ Support and guidance with life changing decisions
A great deal of the decisions we make in our lives can, to an extent, be undone. However, when it comes to money and major financial decisions, the stakes can often be a little too high to risk bad judgement.
When it comes to some of life’s big decisions, there is no take two. It is, therefore, vastly important that we have a thorough understanding of all of the facts before we take a plunge. Employing the assistance of a financial advisor means bringing tools, objectivity and experience to the table. When the stakes are high, the input of a professional becomes invaluable.
So, if you are, for instance, deciding to retire, sell a business, or buy property with cash, you are essentially weighing up a major financial decision that perhaps will only come along once in your life.
Financial advisors can be on hand with such decisions to help you quantify them, get a more detailed understanding of their impact on your life and weigh up any alternatives.
2/ Ensuring mindful management of your investments
Properly managing your investments takes time, skill and a considerable amount of energy.
It’s very easy to underestimate the amount of effort that goes into balancing, researching and taking action on your investment decisions. Often, if we do have spare time, many of us would likely rather spend it doing something more pleasurable, opposed to reading financial forecasts and researching investment opportunities.
Plus, we underestimate the way that the stresses we experience in the other areas of our lives may impact our ability to make a sound decision when it comes to investing our own money. After a long day at work, perhaps followed by an evening of domestic or childcare related labour, how fresh are you likely going to feel to be able to sit down and mindfully take care of your investments?
By vesting this responsibility into the hands of a financial advisor or investment manager, we avoid biting off more than we can chew, so to speak. Handing over our investments into the care of a professional who spends their day objectively balancing money for a living is certainly always a sound idea.
3/ Peace of mind
There are many reasons why an individual may choose to work with a financial planner, but the desire for peace of mind is the motivating force which tends to underpin a person’s choice to seek financial advice.
Getting your finances in order after a long period (or perhaps a lifetime!) of disarray, compiling a sound retirement plan or ensuring family is taken care of after you’re gone. All of these things can be greatly empowering, freeing us from the shackles of a worrisome mind.
Very often, however, we opt to stall and avoid taking action on our financial concerns as we are overwhelmed by our own lack of understanding regarding the options that are available to us. The stress this causes and the risk it entails can have a ripple-out effect into all areas of our life. This is where the knowledge and expertise of a financial advisor comes in.