Every time you think of Financial Planning, there are probably two basics you get into thinking about:
1. Having a Financial Advisor
2. Acting as a self-directed investor
However, it is generally not easy to abide by the latter.
Consider the fact that we are talking about your financial condition. The majority of us lack the knowledge and experience that a good financial advisor can provide.
Financial Advisors also need Financial Advisors:
Financial advisors will argue that financial planning and investing are topics about which everyone should be knowledgeable. Financially advising others, on the other hand, is not the same as being your own advisor. If you work in finance, you may have some of the tools you need to be a self-directed investor, but there is a lot you will not be able to anticipate and act on. As a result, financial advisors, like doctors, require primary care physicians' services.
Financial Advisors can help in improving your money habits:
A large number of surveys have been carried out to understand and have a count of the number of people who work with financial advisors and how many people have long-term financial plans. The results of these surveys are, however, disappointing.
According to a Charles Schwab report, about 60% of the Americans live pay check to pay check. Also, only about 25% of the Americans have a financial plan. According to reports from CNBC, 75% of the Americans manage their finances all by themselves, without consulting any financial advisors.
People generally are not open to creating a financial plan because they feel they do not have enough money to get invested. Greater fiscal responsibility and improved money habits are encouraged with a good financial advisor and a well drafted written financial plan.
The sad truth about financial planning is that a very limited number of people are aware about this method of managing your finances. Of course, it is always better to learn and gain more knowledge with regards to wealth management. However, what really is not a good practice is to believe that you can do it all by yourself. A number of people lack the ability to do this as a solo practice.
The more you try to understand about your money, the better you get at making decisions about it.
Your Financial Advisor can help you in various ways including:
Investments tailored to your needs and requirements
Investing in Alternatives
Strategies to maintain/increase income
Mutual funds related decisions
Private company investments
Discussing about your money with your spouse
Making decisions not based on emotions
Additionally, a good financial advisor can help you identify your risks and areas of concern.
Get in touch with our team of experts to see how they can help you manage your finances and attain your goals.