07 Oct Why do you need financial advisors?
A financial advisor is an educated, skilled and experienced professional who helps you in setting and achievement of your financial goals. They provide a wide variety of services like retirement planning, investment consultant, managing portfolio, tax consultant, estate planning and much more.
Here are the few reasons for which you should hire a financial advisor:
- Working out your financial plan:
A financial advisor on the basis of your current financial position and your future financial expectations helps you in setting your long-term financial plan. He takes all the factors such as your current lifestyle, present investments, years to retirements, etc. into consideration before setting your financial goals.
He also makes sure that he chalks out such a plan that is easily achievable and does not burn your wallet.
- Educate you about various investments:
There are so many investment options available these days. As an amateur, you do not have a knowledge about various risks and rewards associated with all the investment plan. The financial advisor makes you aware about various options available in the market and also tells you about the strengths and weaknesses of each investment.
- Recommending appropriate investments:
It is not sure that if one investment plan is suitable for your friend then it will suit your needs also. The financial advisor on the basis of your financial goals, recommends various investment options that will be best suited to your financial goals. All the recommendations are made keeping in mind your expected returns, time period as well as risk appetite.
- Monitoring your portfolio performance:
Being busy with work, it is difficult for you to continuously monitor your portfolio. Regular monitoring of the portfolio is very necessary to maintain a suitable investment mix and to check the performance of various investments.
But, if you hire a financial advisor then he will monitor your portfolio and its performance on a continuous basis and keep you informed about it regularly.
- Re-evaluating your financial plan:
Your financial goals can change due to a job change, lifestyle change like marriage, or the birth of a child, etc., or change in priorities. So, it is important to re-evaluate your financial plan from time to time to match it with your current financial position and new financial goals.
The financial advisor will review your financial plan regularly to keep it updated with your current financial goals.
Hence, hiring a financial advisor will help you achieve all your financial goals easily and smoothly.