woman looking at hiring a financial advisor

9 Advantages of Hiring a Financial Advisor

Did you know that the financial planning and advisory market is worth $59.2 billion in the US alone?

This is not surprising as more people are genuinely concerned about their financial future. However, many people still don’t realize the importance of hiring a financial advisor.

Handling financial matters can get complicated, especially as you approach important life decisions. It requires a unique set of expertise you can only get from a Certified Financial Planner™.

But, it’s normal to be skeptical about hiring one. After all, why hire one when you are doing just fine, currently?

Here’s a list of some of the unbeatable benefits of hiring a financial advisor.

1. Undeniable Expertise

What do you do when you’re feeling unwell? Chances are, you drop everything and schedule an appointment with your doctor. That’s because you don’t have your doctor’s expertise.

The same should be the case in all matters relating to financial planning. Sure, there are many resources online detailing how to tackle planning by yourself. But most financial moves need an expert’s guidance.

Financial advisors, especially those who are Certified Financial Planners™, have unique experience and understand how all of the financial pieces fit together. So they’re in a better position to advise you on financial decisions big and small.

2. Reduced Stress

Let’s face it; financial planning is not the easiest or most enjoyable task. Chances are, even thinking about it causes a slight headache.

Defining your financial goals is just the first step. Working to meet these goals can be challenging and stressful. There’s more to financial planning than saving money each month.

You have to deal with taxes, financial markets, and the law, all of which can be tasking. These are all things your financial advisor can tackle. So, hire one if you’re tired of having to do all these things on top of holding down a job.

3. It’s a Learning Experience

You’re bound to pick up vital skills when working with a professional advisor. Most advisors meet with their clients to discuss investment opportunities. A good financial planner offers a wide range of advice beyond your portfolio. That could include discussions around estate planning, insurance, social security, and more.

All you need to do is ask as many questions as possible during these meetings. Learn why they recommend specific opportunities for you and disregard others. Feel free to pick their brains about budgeting and any areas where you feel you could use more guidance.

4. It Eliminates Emotions from Investments

Emotional reactions can be costly for an investor. It’s easy to get lost in the fear and greed evoked by the investment market.

You may be tempted to sell your stock in a particular company because you’ve heard some rumors. Or, you may want to sell your property because you’ve received a great offer. While these decisions may seem logical, your financial advisor may hold a different opinion.

Financial advisors make decisions after tremendous research. They are disciplined and will hold out for the best possible outcomes. They can also run through model scenarios to see how a decision today could potentially impact your future goals. That’s why you need a financial advisor to guide your every move.

5. Promotes Coordination

Hiring a financial advisor will prove invaluable because they’re good coordinators. Wealth management requires the effective coordination of various facets of your life.

A financial planner will work with other individuals in your life to promote your best interests. That’ll involve coordinating with your lawyers, estate planners, and business managers. By acting as “quarterback”, your financial advisor can be sure your financial plan is comprehensive and cohesive. 

6. Helps With Debt Control

Let’s face it; loans are a normal part of life. In fact, Gen X and baby boomers owe an average of $140,643 and $97,290, respectively.

But most people don’t know how to manage their debts. It’s not always as easy as making monthly payments. Sometimes, debt consolidation may be your best option to reduce costs.

That’s why it’s essential to consider hiring a financial advisor. Your advisor will develop a strategy that minimizes costs and maximizes your benefits. By getting your finances in order and a budget in place, it’ll also help ensure you make timely repayments to reduce loan-related fees.

This secures your financial future as it increases the chances of loan approvals. Lenders consider your past repayment history when deciding whether to approve your loans.

7. You Enjoy a Customized Financial Strategy

Contrary to popular belief, financial planning is not a one-size-fits-all process. Saving is just one piece of the financial planning puzzle.

Many factors determine the best approach for different individuals. Some of these include your financial goals, your timeline for these goals, and your income.

Sometimes, saving could be your best option, but other times, your answer may be investing. It’s up to your financial advisor to help you decide on the best approach depending on your needs. So, hire a financial advisor for a strategy that’ll help meet your financial goals.

8. Helps Choose the Best Investment Opportunities

There are thousands of investment opportunities. But, only a few of these opportunities are the right fit for you.

Identifying the best opportunities for you is a complex and daunting task. It requires a lot of research and market knowledge. That’s where a financial advisor comes in.

After analyzing your financial goals and risk appetite, they’ll recommend investment opportunities that will help you reach your goals. They can help find the balance between risk and return on your investments. They can also act as a sounding board when new investment opportunities peak your interest.

Creating appropriately diverse portfolios requires a considerable amount of time and expertise. So, it’d be best if you were to hire a financial advisor to help you rather than go at it by yourself.

It’s even more meaningful for you to ensure your financial advisor is a fiduciary. [Insert link to the RIA difference page] This will give you peace of mind knowing that suggestions and guidance are based solely on your best interests and not on the what would be more lucrative for your advisor.

9. Helps Prepare for Life Transitions

You pass through various phases of life as you grow. Your finances play a crucial role in how comfortable you are in these phases. It’s vital to have your finances in order as you navigate through life.

A financial advisor will help you prepare for the expected transitions like retirement. They’ll also help prepare for the unexpected ones, like divorce. It’s their job to prepare your financies for unpredictable changes and plan accordingly.

Get Value by Hiring a Financial Advisor

Have you decided to hire a financial advisor? The next step is finding the right professional. 

A financial advisor will help with financial planning, investment decisions, and wealth management. An advisor who is a fiduciary will make sure all decisions are made in your best interest. It’s never too early or too late for professional financial planning.

Contact us today to learn more about our financial planning services.