There is a difference between being rich and having wealth, though those two terms are often confused. While you may not be rich, to a degree, most everyone has wealth.
Wealth is made up of the things that you own that have value, however remote, like a car, bank accounts, insurance policies and other assets. Everyone who works, earns and strives to build a life for themselves, manages that wealth. How well you do that is a different story. Financial advisors make a living at managing wealth. They maximize your wealth to make it work best for you and give objective advice about how to get to the level of wealth you prefer. Many people believe that to have a financial advisor, you must be rich. However, nothing could be further from the truth. Learn how a financial advisor can be your best asset as you start to build the life you desire.
Top Ten Reasons You Should Hire a Financial Advisor
Reason One: Retirement. You may be many, many years away from retirement age, but it is never too soon to start. In fact, the sooner you start, the greater the chance you can become quite wealthy by the time you reach retirement age. A financial advisor helps you to set up realistic goals for saving, and helps you develop a personal wealth blueprint so that you can retire in style.
Reason Two: Expertise. Financial advisors review your assets expertly and see pockets of wealth that might have completely gone over your head. They are able to:
Read the fine lines of an insurance policy.
Assess the value of a car or an antique.
Apprise you of a special rule of which you were not aware.
Determine investments that are not working and make better suggestions.
Reason Three: Navigate Debt. Milestones are expensive, whether it is going to school, getting married, buying that first house, or having a child. A financial planner knows how to examine your wealth against the cost of potential debt and create a plan to help you navigate these milestones with the greatest financial ease possible.
Reason Four: Taxes. Financial planners have done most of the heavy lifting for you when it comes to understanding current tax law. They help you legally circumvent unnecessary payment or tax hits, and help you get the most out of your deductions.
Reason Five: Investments. A lot of people shy away from investments because they are daunting. A financial planner can break down the sometimes-complicated language of investing to make it accessible to you. He or she can outline the potential pros and cons of the investment world and make the jargon easier to understand.
Reason Six: Freedom. Freedom comes in many forms, and having a financial advisor can also offer a freeing up of your time. Consider that you may money at a restaurant rather than cook, and you take your clothes to the cleaners. These are services that free up your time. The same applies to a financial advisor. While you are doing other things, the financial advisor is making your wealth work for you, doing what he or she does best.
Reason Seven: Objectivity. The financial advisor is not emotionally attached to your wealth in the way you are. Like a doctor who makes the necessary assessments and gives it to you straight, a financial advisor prescribes the best possible wealth-building/sustaining course for you.
Reason Eight: Staying the Course. If you have ever tried to set up a personal budget for yourself only to go off track a few months later…you are not alone. A financial advisor is there to tweak plans for unexpected needs and to help you stay true to your objectives. Consider your financial advisor an accountability partner in your personal wealth.
Reason Nine: Spotting Opportunity. A financial planner knows where to look for opportunities that would best suit your wealth status. What might be appropriate for one person, might not be appropriate for another, and your financial advisor identifies and suggests courses of wealth building that are the most efficient for you.
Reason Ten: Identify Goals. Retirement might be a goal, owning property might be a goal but a financial advisor is also a financial planner. He or she can advise you on necessities you might not be aware of and might not know about until it is too late. Whatever your goals are, your financial planner can counsel you on a financial/wealth strategy to help you attain them. Often very important goals are overlooked and the trained professional is able to point them out to you.
How to Find a Financial Planner
When you are first starting out you need to ask yourself a few questions. First, are you wanting someone to help you with investments, or do you want a retirement plan mapped out for you? Some financial advisors charge a fee to manage your investments, while others simply charge by the hour regardless of the task they perform for you. The best place to find a good financial advisor is to research them on the following reputable sites;