5 Reasons You Need a Personal Financial Advisor
Only the honchos who feature in Forbes Top 100 List need financial advisers, right? If that is how you feel, then you are wrong and sooner than later, you might come to regret this assumption. Well, before it comes to that it is time to get another perspective of these professionals.
The Hard Statistical Facts
A study by National Association of Personal Financial Advisors (NAPFA) found that over 97% of respondents who took advice from professional financial experts witnessed growth in their finances. Another study on Forbes found homeowners who had professional advice over a period of 7 years experienced net financial growth of over 68%.
The Indispensible Role of Your Financial Advisor
The numbers have spoken and even financial experts themselves confess they need an outside look at their personal finances and therein lay the secret of success. Here are some insightful reasons you need these experts to guide you to financial freedom:
1. Formulating a Workable Financial Plan
You have a dream as does everyone else but how viable is your financial plan in achieving this goal? This is where advisors come in handy because they do not procrastinate in making this plan. More importantly, they understand the lay of the land in terms of finances. These experts have the foresight capability and once they look at your financial situation, they will create a solid plan and not one based on fantasy.
2. Objectivity in Finances
Warren Buffet the enigmatic but hugely successful entrepreneur cryptically stated that Mr. Market is a drunken fool. The billionaire was of the view that you have to stay sober and steady in making decisions. Your financial advisor brings in this aspect of objectivity by pointing out your biases, weaknesses and even strengths.
Such information is critical for success in life and more importantly, in your finances. These experts are ready to tell you what you don’t like hearing and making painful decision especially regarding savings.
3. Identify Risks in Your Finances
Now that you have been largely successful in business, what is the point of hiring someone to tell you what you already know? Well, you just have to look at the economic recession of 2007/2008 and the real estate bust that accompanied it to appreciate the aspect of risk in business.
Many homeowners saved their homes because they leveraged professional advice and had either exited the market or diversified to cushion the shock. In business, a second and even third point of view never hurt anyone. Just let the professional careen their necks to save yours.
4. Provide Alternative Investment Options
There are many investment options available but to be frank when was the last time you got a breather from work to look at the best vacation homes in the Financial Times? With modern hectic lifestyle, making the right investment is almost impossible and this is where your financial advisor comes in handy.
5. Peace of Mind
Frankly put, everyone would love to be in control of his finances but there is always the problem of getting to it. As such, you might realize you are nearing retirement without having made any real investment. Your advisor takes all this off your shoulders. This peace of mind is invaluable in today’s stressing world.
Well, the reasons go on and on but you cannot deny that these professionals are indispensible in your financial life. For this arrangement to work, look for recommendations, visit professional websites such as Certified Financial Planner Board of Standards, Inc. or National Association of Securities Dealers among others.
What’s more, look for a reputable financial advisor and ensure payment details are concise to avoid disagreements in future.