IS IT TIME TO TALK
to a financial advisor?
GETTING YOUR FINANCES IN ORDER
Should you talk to a financial advisor? Some things that might help you to decide include: Are your finances getting ‘big’ on you? Are you comfortable with your current wealth journey? Are you financially where you want to be?
If you are answering “no” to one or more of these, then you should consider talking to an advisor.
A financial advisor is tasked with helping you close the gap between where your finances are today and where you want them to be.
Your reason will be specific to you and your situation but no matter how big or small your financial goals and needs are, a good advisor is there to help you reach them.
Many people struggle to understand the difference between a financial advisor and a financial planner. These terms are often interchangeable, however there is a difference: the term financial adviser is broader. It encapsulates stockbrokers, accountants, estate planners, bankers and financial planners. A financial planner is someone that, as the name suggests, ‘plans’ your finances by providing you with a strategy to reach your financial goals.
Either way, all of these advisors should have the same goal for you – helping you achieve the financial targets you set for them.
The stand-out advantage of an advisor is they will save you time, as they can do all the leg work. This includes researching investment options, creating and enacting an investment strategy, monitoring your portfolio, and collating all the paperwork needed for things like tax reporting.
Remember, your advisor is a practiced professional and will likely provide better investment results than if you were to do it alone.
The disadvantage is cost. You need to be aware that all advisors charge fees. These fees can be in the form of commissions, an annual fee or a one-off cost. Whatever the fee structure, you need to be aware that fees are detrimental to your long-term returns. I suggest looking at advisors offering low fees because it will mean more returns remain in your pocket rather than theirs.
Secondly, unfortunately not all advisors are a good advisors, and choosing the right one will take a bit work. As a general rule, look for one that is trustworthy, honest and personable.
If you have financial goals to reach or funds you’re looking to invest but no definitive plan as to how you can do this, it may be time to talk an advisor. They will reduce your financial stress and guide you to a better financial future.