There are so many benefits that come with working with the right financial advisor.
There’s a big misconception about financial advisors. Despite the fact that they can help people in many different ways and with many different financial situations, many people believe that only the ultra-rich need to work with one. Today, I hope to shed some light on how just about everyone can benefit from working with the right financial advisor.
5 Benefits of Working With a Financial Advisor
#1. Gain a better understanding of where you’re at.
Where you’re at financially involves so much more than just how much money you have in the bank. And, no matter how much money you make, it’s important that you have a clear understanding of exactly what financial stability looks like to you.
If your financial situation feels hopeless — if, for example, you have a lot of debt — the idea of sitting down and taking a look at the numbers can feel incredibly overwhelming. But, it’s important to realize that, whether you ignore it or not, your financial situation won’t change unless you do something about it. And, in order to do something about it, you need to know where your starting point is.
Having the right financial advisor on your side will not only help you gain the full picture of what your current financial situation looks like, but they’ll help you figure out how you got there by helping you understand your spending habits.
#2. Figure out what your financial goals are.
You may already have an idea of what your financial goals are, and you may not. Either way, your financial planner can help you determine whether those goals are realistic or not. They’ll also be able to guide you in setting other goals to help you reach financial stability.
Whether you want to plan for retirement, start investing, or get out of debt, simply having a goal isn’t enough. You also need a plan to reach that goal, and your financial advisor can help with that, too. They’ll tell you which steps you need to take, and they’ll help you stay on track while you take them.
#3. Get help on a variety of financial issues.
A lot of people are under the impression that only wealthy people who are investing in the stock market can benefit from working with a financial planner, but the truth is that financial planners can help with a wide range of financial issues.
Here are just a few of the things a financial planner can help you do:
- Prepare to buy or sell a home – Buying or selling a home involves large sums of money, as well as many financial decisions. A financial advisor can help you determine how best to leverage your assets. They can also help you figure out exactly how much debt you can afford to take on.
- Plan your estate – What will happen with your assets when you’re gone? Your financial planner can help you determine where your assets should go, and when you pass away, they’ll work with your lawyer to ensure that your instructions are carried out.
- Plan your finances after a divorce – If the emotional toll of divorce wasn’t enough, many couples also have to figure out how to split shared assets and finances. Your financial advisor can work with you to financially adjust to your future without your spouse.
- Retirement planning – Whether you’re planning on retiring in 10 years or 50, a financial advisor can help you get on the right track for a comfortable retirement.
- Prepare your finances to start a family – Having a child isn’t cheap. In fact, the average cost of raising a child for the first 17 years of their life is $233,610, $284,570, when you consider inflation, and that doesn’t even include college tuition. Your financial advisor can help you navigate the costs of raising a child.
- Prepare for the costs of long-term care – No one plans on ending up in a nursing home or needing in-home care, but it’s a reality for many people. If you need long-term care of any sort, even if it’s just for a few months, you could end up burning through your retirement savings faster than you might think. A financial planner can help you prepare for that.
- Plan your taxes – Your financial planner will generally have a much better understanding of your full financial picture than an accountant will, and they can help to protect your assets from tax mistakes that could cause serious damage.
- Help you decide what to do with a windfall of cash – Maybe you’ve received a large inheritance or a large payout from a legal settlement. In any event, figuring out what to do with a sudden windfall of cash can be difficult, and it’s easy to get it wrong. A financial advisor will help you figure out where to put it and what to do with it.
These are just a few of the many, many ways a financial advisor can help.
#4. Take your emotions out of the equation.
If you’re looking to invest in the stock market, it’s always a good idea to have a financial advisor on your side. Why? Because when you have skin in the game, the rising and falling of the stock market can be a very emotional thing, but if you let them, your emotions can get you into trouble.
When you see the stock market plummet, it can feel like your hard-earned money is evaporating into thin air, and the visceral fear that it creates can lead to making the wrong decisions. The right financial advisor will help to keep you calm and direct your decisions. They know that the market goes up and down, and they’ll help you keep your emotions in check while riding out those ups and downs.
#5. Gain more peace of mind.
It’s not always easy to know what the right thing to do is with your finances, and that uncertainty can be stressful. Having someone in your corner who has experience and know-how can go a long way toward helping you reach peace of mind in your finances.
Working with a financial advisor is beneficial in so many ways, but it’s important to note that not all financial advisors are made equal. Finding the right one for you is important, and luckily, Top Rated Local® is a great place to start your search.
When you look for a financial advisor near you with Top Rated Local, you’ll be able to read financial advisor reviews from across the web, and you’ll be able to easily compare advisors based on their overall Rating Score™.
Start your financial advisor search with Top Rated Local today!