You keep your money in a savings account at your bank, so that’s sure to be the best place for it, right?
7 Reasons You Need a Financial Advisor
Actually, no! Savings accounts earn minimal interest and aren’t the best investment strategy. Instead, savvy investors know that working with a financial advisor is the best way to look after their money.
What is a financial advisor? This is a licensed professional that provides investment guidance to individuals and families, helping them look after their investments and prepare for the future.
Curious to learn more? If so, keep reading to find seven key reasons why you need a financial advisor.
1. Plan for Your Retirement
One of the most important reasons to hire a personal financial advisor is to plan for your retirement. Shockingly, only 36% of working adults feel like their savings are on track for retirement.
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Retirement comes up more quickly than you realize, so it’s smart to start working with a financial advisor in your 30s and 40s, making a plan for your retirement. Based on how much time you have before you want to retire, they can recommend steady, long-term investment options or short-term investments, ensuring you can retire on time.
This way, you’ll be prepared to relax and enjoy your retirement, without worrying about whether or not you have enough savings.
2. Set Goals
Do you find it hard to set financial goals–and reach them? With so many expenses in life, it can be a big challenge to reach your financial goals, especially if you’re not earning big bucks.
If you hire a financial planner, they’ll sit down with you to discuss your goals, such as saving, buying a home, or investing. Then, they’ll make a personalized plan for your needs, so that you know exactly what you need to do to reach your goals.
By breaking the process down into manageable steps, it’s much easier to reach your goals, even if unexpected expenses arise.
3. Grow Your Home Deposit Faster
For many people, the biggest purchase they make is buying a home. However, as many young people are finding out, saving for a down payment is tough, especially if you’re paying rent at the same time.
One of the best questions to ask a financial advisor is about homeownership—what can you do to be able to buy a home sooner?
With guidance from your financial planner, you can make smarter choices when it comes to investing and saving, you can hold the keys to your own home sooner than anticipated. They might also be able to recommend short or medium-term investments that can help the money you’ve already saved work for you.
4. Get Opinions from an Expert
The world of investing is vast, with new options thrown at us every day—crypto, stocks, 401K, or bank shares? It can be overwhelming to make decisions about which investment opportunities are worth the expense.
One great thing about having your own financial advisor is that you can get a second opinion on any investment—not from a friend or relative, but from a professional.
Every investment can be risky, so it’s smart to discuss it with your advisor first, as they can give an honest answer about whether or not it’s right for you.
5. Look After Your Family
What will happen to your family if anything happens to you? While it can be a sad thing to think about, one key role of a financial advisor is assisting with wills, trusts, and estate planning.
They can set up trusts and accounts that will go to your family should you pass away unexpectedly. This will provide you with peace of mind that your loved ones are looked after, no matter what happens.
6. Reduce Excess Spending
Saving money can be hard, especially if you’re juggling a mortgage, family expenses, and school costs. However, your financial advisor can help with this, looking over your spending patterns and working out where you can save money.
This can make it easier to build up your savings and can improve your money management skills. As you develop new saving habits, it will be easier to reach your goals.
7. Manage Taxes More Efficiently
Tax time can be complex, especially if you have multiple revenue streams or have bought or sold a property in the last year. Although we all know paying taxes is important, you also don’t want to pay more tax than you have to!
If you’re trying to sort out your finances as tax time rolls around, a financial advisor can be a huge help. They’re experts on tax laws as it applies to investments and capital gains, so they can talk you through the process and give advice.
This can help you pay less tax and save more money, something every investor is sure to appreciate.
Find a Financial Advisor Today
With so many great reasons to hire a financial advisor, it’s time to hire someone you can trust to look after your money.
To find a certified financial advisor near you, it can help to ask friends and family for recommendations. Reading online reviews can help as well, but be sure to find someone who shares similar views on investment strategy, as you want to find someone who’s a good fit.
After an initial consultation, your advisor will get to work on your investing strategy—it’s sure to help your money grow, year after year.
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