The phrase “I need to get my money making more money” is commonly uttered by people who aren’t familiar with financial planning. The concept of proper investing to ensure that you’re getting the most out of your money is certainly appealing to many. That being said, investing your money is one of the most complicated things you can do. What’s more, the consequences of doing a bad job of it can have a real and damaging effect on your life. Since investing is so complicated, it’s difficult to accumulate the knowledge and experience on your own to really make the right decisions more often than the wrong ones. That’s where many people turn to a financial advisor. That being said, will a financial advisor really help me increase my wealth?
Answer: Financial advisors assist with investing, but also with cutting expenses.
When choosing to take advantage of financial advisors, the first thing is to have an interview with them. There’s no reason to commit to someone helping you manage your money if you don’t have confidence in them. A few meetings and interviews can help you feel them out and see what kind of plan they might have for your money.
Investments are certainly an important part of the job of a financial advisor. Depending on the advisor and how they work, they may be paid a portion of profits. This gets them extra invested in the process since their livelihood is at stake. The good thing about a financial advisor is that they advise. They suggest a course of action and wait for confirmation. This can be different from some other wealth management services.
Financial advisors don’t just work on investing however. They help people with almost every aspect of their financial life. Many are used to help set up a retirement plan that is reasonable up front, but will provide for everything needed once retirement rolls around. Others can have their spending analyzed and determine where they are making mistakes and potentially find more money for investing or saving than they realize!
Financial advisors benefit from this being their profession. They are aware of the vagaries and subtleties of your potential financial transactions. Tax implications are often missed by people doing their own investing. They may not have time to really research funds or stocks that they are interested in. These are things that a financial advisor is all about.
When it comes down to it, having a financial advisor is great for anyone who can’t specialize their free time for finance. For people who can, sure, there’s no need to pay fees to someone if you can grow your money yourself. However, for the rest of us, a financial advisor helps us with a complicated and serious topic at what is usually a very affordable rate.
There’s plenty of information about financial advisors online. This article is obviously only a cursory look at whether or note a financial advisor may be useful. These additional resources can provide more information on the topic.
- Forbes - Forbes has a devoted following in the business and finance world and is trusted by readers. This article looks at whether a person should be doing their own financial actions, or perhaps choose to use a financial advisor.
- The Balance - This website is known as an expert on budgeting, investing, banking and all things financial. This article argues about whether a financial advisor is truly worth the costs associated with hiring them.
- RBC - RBC is a mostly Canadian bank that has expanded throughout the world. While their specific information is often aimed at Canada specifically, the advice in this article applies to United States residents as well. This article uses several statistics to show the benefits of working with a financial advisor.