Last Modified on July 27, 2020

A financial advisor is a professional who helps people manage their funds in the most effective way, thereby ensuring their financial peace. Working with an independent financial advisor brings a host of benefits. This also explains why an increasing number of individuals are reaching out to them.

If you are wondering if it worth it to work with a financial advisor, you must read on.

What are the major roles of an independent financial advisor? 

Financial advisors are equipped to cater to a wide range of your needs. Given below are a few of the many things that they do.

1. In-depth research of different financial markets
2. Keeping the client updated with existing and newly introduced financial products and services
3. Making suggestions to invest in the most lucrative products
4. Understanding that different clients have different goals and expectations. Thus, tailoring the most suitable plans for them
5. Communicating with clients at regular intervals to reflect transparency and build a long–term relationship
6. Providing the simplest and safest ways of safeguarding assets and also managing them effectively
7. Managing portfolio diligently
8. Developing long term strategies and plans

How do I know if I need a financial advisor?

Your financial stability is one of the most crucial aspects in your life. Hiring a professional to take care of your finances can be extremely beneficial in the long run.

Here are some benefits of an independent financial advisor – If you think any of these aspects can help you in financial planning, you should go ahead and hire yourself one:

1. Professional guidance
2. Bid farewell to your tax concerns
3. Benefit from their research skills
4. Count on them for managing your finances
5. Benefit from their experience and perspective
6. Your investments are reviewed regularly

Let’s have a look at each one of them.

1. You get professional guidance

While you are the best person to decide how you want to manage your finances, seeking guidance from financial advisors can be a good idea. These professionals have completed several trainings and are well qualified. Moreover, with decades of experience, they are in a better position to advise you on where to invest at a given time. This is because they have dealt with different financial problems and thus, are well aware of what works and what does not, based on each person’s individual needs and goals.

2. You can bid farewell to your tax concerns

Huge amounts of taxes on investments and assets can beat the very purpose of having them. A good financial advisor understands this and arranges your finance in a way that your tax outgo is minimum. High taxes mean low returns. Even seemingly promising investments can turn out to be a wrong decision because of the associated taxes. An independent financial advisor acts as your savior here. They will not only help you reduce your taxable income but also ensure that you are updated with the latest tax laws and amendments.

3. You can benefit from their research skills

The role of an independent financial advisor requires them to be a dynamic researcher. In-depth studies on various industries, sectors, and markets help them stay competitive. They are well-updated on different sectors, financial markets, risks, current laws, taxation rules, and other areas of financial management. Thus, when you approach them with your problems, they are well equipped to help you make informed decisions. This, in turn, will help you minimize investment risks.

4. You can count on them for managing your finances

In a fast and progressive world, you already have a lot on your plate. Even though you want to, it is quite possible that you find it difficult to carve out time from your busy schedule for managing your finances. With a financial advisor by your side, you can be care-free about your money. These professionals use their skills and expertise to ensure that your money is put to good use. While you are working, financial advisors can make your money work for you. They take care of a wide range of economic challenges and responsibilities on your behalf and find optimal ways for wealth creation.

5. You can benefit from their experience and perspective

Financial advisors not only bring years of experience to the table but also have a clear perspective. They analyze your financial decisions from a long-term point of view, which is a must for investment success. They also balance your decisions and help you ensure that your emotions don’t affect your investment returns.

6. Your investments are reviewed regularly

The importance of reviewing your investments cannot be stressed upon enough. It is only when you track the performance of your investments that you know their alignment with your goals. An independent financial advisor keeps a track of your investments and sends you regular reports. They are also in a better position to tell you whether you should stay invested or withdraw funds, based on their review of the market.

What does it cost to work with a financial advisor?

The charges for an independent financial advisor can depend on many factors like the nature of your investments, number of investments, etc. Financial advisors can charge anywhere between $1000 and $2000 for  a comprehensive financial plan. Most advisors charge a particular percentage of your investments as their fees. Some can also charge hourly fees depending on the work you hire them from. It is advisable to consult an advisor and discuss your financial plans with them to understand their fees and charges.

However, the important to note here is that despite the costs involved, the purpose of hiring a financial advisor is to create more wealth by letting your money grow. Instead of focusing on small-term costs and fees, you should keep the bigger picture in mind.

To sum it up

You work hard to earn money. You ought to utilize it in the best possible manner. An independent financial advisor can make the task easier with their qualification, skills, and decades of exposure to the market.

Want to ensure a peaceful financial life? Approach a financial advisor today!