Management of finances is sometimes overwhelming. According to the Economic Times, a 2022 report indicated that about 65% of Indians don’t have enough savings to cover three months of expenses. Working with a financial advisor could help those people to typically save 2.7 times more than those who don’t.
According to the Journal of Financial Planning, 2020. If you are not certain whether you are preparing for retirement, managing cash flow, or need to explore options like a self-employed business loan, then an advisor can show you the right choices.
Why You May Need a Financial Advisor
You are probably thinking, “Do I really need a financial advisor?” Well, the truth is that a financial advisor will turn your life around, especially once things start getting a bit complicated. In any case, whether it’s retirement planning, saving for a significant purchase, or working towards maximising investments, a good financial advisor will guide you through the whole process.
When to Seek Advice?
You are unsure if you should get expert advice? Here are a couple of scenarios when you might be ready to call in the pros:
- Big Financial Choices Ahead: You are thinking of buying a house, starting up a business, or investing big time? A financial advisor like “Finance with Sharan” on You Tube can help explain the best strategies and tax implications.
- You Have Several Streams of Income: If you are managing several sources of income, freelancing, investments, or side hustles—it gets confusing. An advisor helps you keep track of it all by creating a plan for allocating and saving funds effectively.
- You Want to Optimise Your Retirement Savings: You may feel your retirement lies years ahead of you, but it’s never too early to start planning. Financial advisers specialise in selecting the best retirement accounts and investment strategies to help ensure a comfortable later-in-life living situation.
- You’re Unsure of How to Invest: You probably don’t feel that you know how to choose the right stocks. On YouTube, Graham Stephan and Andrei Jikh simplify complex topics, while Finance with Sharan provides practical tips on building wealth. These resources are great for both beginners and experienced investors.
Vanguard’s 2022 study shows that people who work with financial advisors have an average 401(k) balance about 30% higher than those who don’t.
A 401(k) is a retirement savings account employers offer where employees can save money for retirement with tax benefits.
What a Financial Advisor Can Do for You?
- A financial advisor does not only help in making decisions. They are also a sounding board, educator, and strategist. Here’s what they bring to the table:
- Personalised Financial Plans: They look at your personal objectives to put together a customised strategy for achieving them.
- Ongoing Financial Education: They will make complicated matters like asset allocation, taxes, and debt management meaningful to clients.
- Investment Advice: Counsellors aid you in selecting the appropriate investments for your risk tolerance and your financial objectives.
When You’re Ready to Seek Help
So, exactly when should you hire a financial advisor? There’s no simple answer, but if you feel overwhelmed or unsure about controlling your finances, then it’s time. An adviser can come with a fresh perspective, save your time, and perhaps gain more money compared to what you could think of doing.
Control over your financial future.
While it is tempting to try to do everything on your own, at times, the best move is to get professional advice. A financial advisor helps to make your financial life much less complicated and brings you closer to making smarter choices. Managing debt, planning for the future, or maybe even investments, having an expert by your side can make all the difference.
If you are not sure where to begin, perhaps a consultation could be the first step toward reaching your dream financial goals.
Frequently Asked Question
Q. When do I need a financial advisor?
Seek advice when you make big financial decisions, are confused, or need investment advice from a professional.
Q. Can a financial advisor assist in retirement planning?
Yes, they can help you choose the best retirement accounts and investment strategies for your goals.
Q. How much can a financial advisor help me save?
Studies have shown that people who work with a financial advisor save 2.7 times more than those who do not.
