Have you ever hired the services of a financial advisor? Are you perhaps thinking that financial advisors only work with people who have a lot of money in the first place?
That’s quite a common misconception with it comes to wealth management, the misconception of the clients being very wealthy, to begin with, after all, if you haven’t got much money, there isn’t much point in managing it, right?
If you’re sitting there thinking you won’t make it until the end of the month when your paycheck comes in, or maybe you’ve got some savings but not nearly enough to cover a few months out of work, then you need to speak to a financial advisor.
Financial advisors work with individuals and companies with bank balances of all sizes to improve their financial prospects in the long, medium, and short-term futures.
A financial advisor is there to steer you in the right direction, and, because they have much more industry knowledge and experience than you do, their advice is really useful, no matter how rich (or not) you are.
Financial advisors are worth their weight in gold if you want to get serious about your finances. Their role is to help you with your money, to make sure your investments are sound, and to ensure you have planned for any of life’s little adventures or hiccups.
For most people, the very idea of sitting down each week to go through the finance industry news, look at stocks and shares, and see where the next rises and falls will be is not a welcome thought.
For financial advisors, however, this is their world, their universe, and they are more than happy to do the leg work, so you don’t have to. It’s the role of a financial advisor to recommend the most appropriate investments and the best products so you can hit your goals within a sensible financial plan, and if you haven’t got a lot of wealth, looking after what you do have is absolutely vital.
Financial advisors look after four key areas in a client’s financial affairs: Financial planning, wealth management, investment management, and life planning.
Each area overlaps with the others to create a sustainable and well thought out roadmap to financial success. Let’s look at the four key areas.
Possibly the biggest part of a financial advisor’s lifecycle with a client is to look at financial planning.
This area ties in nicely with Life Planning discussed below because it covers the goals and aspirations that a client may have in their life, but with a financial overture.
Financial planning also involves creating a roadmap for your finances now and in the future, and if you get knocked off, a new plan can be drawn up to help get you back on track with your goals in no time.
Comprehensive wealth management is a big task, and it’s the meat of a financial planner’s job. Whereas financial planning involves looking at goals and planning a route to get there, wealth management is the maintenance that you need to ensure you stay on track.
Financial advisors will look at the specific products and services you will benefit from, and they will advise the best strategy to manage your wealth
Wealth management needs to be bespoke to every client and every client’s situation, and as such, it’s really worth finding an experienced and highly recommended financial advisor who will get to know you and your life goals in order to improve your finances.
What does your investment portfolio look like? If you haven’t got one, maybe it’s about time you did.
Working with a financial advisor is the best way to go when you want to dip your toe into the investment waters, but investment management itself goes well beyond just stockmarkets.
When a financial advisor is looking after your investments, they will look after every aspect of your portfolio, from assets like your house to the right banking accounts, tax budgeting, and investment on the stock market.
They will be able to advise on a whole host of things such as budgeting, duties, banking, buying, selling, and acquisitions, to name just a few. For this sort of thing, it really is worth getting a professional who knows exactly what they’re doing.
Life planning is a big part of a financial advisor’s role, and it affects every aspect of the job.
The role of life planning in financial planning cannot be understated as this really is the foundation of all of your financial decisions. Your financial advisor will get to know you and understand what you are like as a person, what your goals are for your life, what your aspirations are, what your family situation is like, and your key moral values.
Life planning can help with all kinds of big life decisions like whether or not to buy a house, or even a second house as an investment, how to handle your 401k plan, the kids’ college funds, and, of course, what to do with your wealth when you are no longer around to enjoy it.
Being shrewd with investments and finances is important for your future and your family’s future, but most people don’t want to be involved with things they don’t morally agree with, even if they are just a silent investor.
This is where your financial advisor shines when it comes to life planning, they will ensure that you are getting the best products and services, and you’re investing in the right places, but that those investments don’t come at the cost of your core values. For example, if you are strongly opposed to meat-eating, your financial advisor would make sure your money would not be invested in meat farming, etc. Instead, they will help find you an investment that you are happy with.
As part of the life planning aspect of financial advice, you may wish to consider charitable donations. These can be a wonderful legacy to leave when you’re no longer around, but they can also be a good way to offset taxes by donating to a cause close to your heart.
As you will have seen through this article, there really is no better time to get ahead of your finances than right now.
Getting your finances sorted now could mean that you and your family are much better off later in life, but it could also mean that you are a little more protected against the troubles that may lie ahead financially.
Your finances are private to you, and many people find it difficult to open up to a financial advisor about what they spend their money on and why, but rest assured that most financial advisors have seen everything and heard everything, and they do not judge. The best part about getting a financial advisor on board who doesn’t judge your purchases is that you can now plan to do more with your money that will make you happy. Plan a holiday, buy a cottage by the lake, or get that ten-foot statue of Darth Vader you’ve been wanting for years!
With the world facing some serious struggles on the horizon, from the global health crisis to the new presidential term, and the constant fear of a new depression due to the pandemic, protecting whatever wealth you have has never been so important.