Why you need a Financial Advisor

Why you need a Financial Advisor?

Dealing with finances is a complicated matter. Tasks like trading of shares, retirement planning, investing for long-term goals, among others can get on your nerves. At some point, you may wonder whether is it a good idea to hire a financial advisor?

What is a financial advisor? 

A financial advisor is a professional who helps you with the monetary issues in a number of ways. Right from investing, helping with a will, to planning for golden years. If you have investable assets and thinking about your financial future, hiring a financial advisor is the key. The advisor uses his knowledge and expertise to construct a personalized financial plan to help you achieve your goals. This includes taking care of your investments, budget, insurance and taxation. A financial advisor also keeps a check on your financial plans regularly to evaluate the current situation and future goals to plan accordingly. 

Here are a few of the reasons why you need a financial advisor:

To keep your investments on track:There are some financial goals for which you may be required to do a quantum of math if you have started late investment, changing investment portfolio, or how much you need to save for the post-retirement phase. These questions put you in a tangled web.  

Advisors Help You Do More Than Just Invest: Not just advising you on the investments front, a financial advisor can help with a wide range of financial tasks that fits your goals and adjust it as per your age. This includes tax planning, wealth creation investment avenues, health insurance, rebalancing investment portfolio. 

Advisors save you from financial stress:According to experts, very few people are knowledgeable and confident about the investment choices. We are living a busy life professionally. Amongst all the responsibilities, do you think you can have the time to research the right mutual funds or find the right balance of funds? In such circumstances, a financial advisor can be an instant help to all your queries and research. Thus, saving your time and stress.  

Advisors help to keep your emotions in check: It is easy to panic when things are not going well, and you are unsure what to do. A financial advisor can offer advice and recommendations on how to navigate through troubling situations through right asset allocation and rebalancing as per your needs. They become a lifelong custodian for your financial well-being throughout even in your absence.

You can get better guidance & knowledge: A financial advisor imparts knowledge on financial health. He can help you set the goals, determine the investment horizon and allocation of your portfolio that might help you to achieve the goals. A wealth of advice from experts will help you navigate better through finances and a disciplined approach to savings and investments.

Do you really need a Financial Advisor?

In life, you encounter many people who will enrich it with the knowledge they impart, the wisdom they share and the guidance they offer. Our parents choose our first teachers to lay a strong foundation and provide us with the tools and skills we need to succeed. But, to live a good and successful life, it is essential to seek out 3 more teachers - a career mentor, a health advisor and a teacher of wealth.

Career Mentor

A career mentor shares his knowledge and experience, helps you fix problems, shows you how to navigate the corporate battlefield and helps you make good choices, which should help you succeed in your career.

Health Advisor

Life brings many challenges - physically and mentally. Having a doctor, a guide to good health that you trust can help you live a healthy life.

Wealth Teacher

Having a teacher of wealth, a financial advisor, should help you take control of your financial situation and make your finances better.

Since, wealth creation is an important goal for most of us - we will focus on the 3 different ways a teacher of wealth can help you.

Impart Knowledge

Working with a financial advisor is similar to going to a doctor when you have health problems, an accountant to deal with tax issues and an architect to build a home. He has the knowledge and expertise to help you improve your financial health.

Share Wisdom & Experience

A financial advisor can help you align your investment and goals, so that you probably can achieve your goals on time. They help you track your financial goals and guide you to achieve them.

For example let's assume that you have 3 goals - accumulate a down payment for a home, create an education fund for your child and save for retirement. He can help you determine your investment horizon (how long is your investment period) and the allocation for your portfolio (funds types) that might help you achieve your goals.

Offer Guidance

It is easy to panic when things are not going well and you are unsure what to do. A financial advisor can offer advice and recommendations on how to navigate through troubling situations through right asset allocation and rebalancing as per your needs. They become a lifelong custodian for your financial well-being throughout even in your absence.

In short, finding a teacher of wealth can help you to navigate your finances better and helps you to achieve your goals with disciplined approach to savings and investments.

Start a journey towards better financial health, today!

An Investor education and Awareness initiative of Aditya Birla Sun Life Mutual Fund

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