A financial advisor is a professional who is skilled in both understanding economic trends and in knowing the different options for growing wealth. These skills can be used to help clients plan for the future when the financial planner’s insight is sought for investing. In some cases, an individual can make investment choices without professional help, but consulting an advisor can be of tremendous help in other situations.
You’re Unfamiliar With Investing
People who don’t have an education in finance tend to view the stock market as another type of gambling. While there are risks in buying stocks, those risks can be managed when you understand market trends and the real value of the particular stock. If you don’t know much about how the market performs, trying to invest on your own will likely result in a loss of your savings. An experienced advisor can help you make wiser investment choices that will yield favorable results over time.
You’re Nearing a Significant Life Change
If something in your life is going to cause a change to how you manage your wealth, you should talk to your financial advisor in advance. For instance, as you near retirement age, you’ll have to learn more about how and when you can begin drawing on your savings. An advisor can explain how to access your retirement savings in a way that will minimize the taxes you’ll have to pay. They can also help you avoid penalties that could otherwise drain your savings.
You’ve Changed Your Goals
Initially, you may have started an investment account as a means of building the wealth you’ll need to pay for a child’s education, buy a new home, or save for early retirement. Plans rarely work out the way you may intend and, when life does throw you unexpected changes, it also becomes necessary to adjust your financial planning strategy. Your financial advisor can look at your current financial status and compare it to your goals to ensure you’re still on track. If a new strategy is needed, your advisor will recommend the best courses of action to achieve your goals.
Even if you’re satisfied with your progress as an individual investor, a financial advisor can provide advice in a one-time consultation. This can be enough to steer you in the right direction before you make a costly mistake. There are many ways to use the expertise of an advisor, so knowing when it’s time to ask for financial help can save you from significant losses.
Originally posted on RagingBull.info.