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Who do you depend on for financial advice? GOBankingRates recently surveyed 1,001 Americans to find out who acts as their main source of financial advice, and the results reveal that less than a third of them receive advice from a personal financial advisor or accountant.
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Work alongside a financial advisor is an investment. Consider some of the following benefits that come from having an objective third-party advisor help you with your finances.
Financial advisors are competent
There are many things that go into personal finance. Each individual has a unique financial situation. Often that means there is an aspect of finance that they may not understand. A lack of understanding or relying heavily on a family member or friend with a limited amount of knowledge can lead to important decisions being made based on emotion rather than rational thought.
Working with a financial advisor allows you to enjoy the benefits of an objective third party. Many financial advisors have probably seen all kinds of financial situations and can offer several solutions. Drew Feutz — CFP, co-founder and financial planner at Migration heritage management — said a financial advisor can help shorten your learning curve.
“Sometimes you just don’t know what you don’t know,” Feutz said. “The world of financial planning and investment management is huge. Having a financial advisor by your side to help you with those things you don’t even know you should be doing can be a huge benefit.
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They can do what you can’t do
Money is deeply emotional, especially during times of economic uncertainty. Colby McFadden, Founder and CEO of Quiver Financialsaid that in addition to receiving advice, a well-rounded and experienced financial advisor should be able to add value to a person’s life by being able to do what that person does not want or can’t not to do.
McFadden uses the example of an individual who tends to experience stress around investment decisions. They are looking for an advisor to manage their investments who is not emotional about making financial decisions. A financial advisor will be able to bring a needed non-emotional perspective to the table.
“For modern times and the current market we find ourselves in now, an advisor may have a skill set or risk management system that prevents losses in bad markets that the individual may not be aware of or capable of. to execute himself,” McFadden said.
They can help you plan for the future
If you don’t have a financial plan for your future or that of your loved ones, a financial advisor is ready to help.
Brett Estep, COO and Founder of Insured nomadssaid a financial advisor can help you plan not only for your own financial well-being, but also for the well-being of your loved ones.
These professionals can help you maintain your finances to plan for retirement, prepare for unexpected challenges and understand your tax liability. If you are married and there is one spouse who is money oriented and one spouse who is not, working with a financial advisor to create a long term financial plan allows both spouses to be on the safe side. the same wavelength and to make sure that they understand the interests of the family. financial situation.
“A good advisor can advise you and help you invest your assets wisely for long-term or short-term gain, tailored to your needs,” Estep said.
Advisors have answers to your questions
If you’re still unsure whether your financial situation requires an advisor, McFadden recommends gauging the answer by being aware of your feelings about your financial dilemmas.
“If you find that your mind wanders back to the same topic or question about money, and you start to feel some emotion at the time of those questions, then chances are you need a counselor or at least a confidant to have a chat with to start finding answers to your questions that can ease your feelings,” McFadden said.
You have a confidant in a financial advisor
No matter where you are in your financial journey – whether you need a review of your current financial plan, investment advice, or are simply looking for an accountable partner – a financial advisor is a trusted confidant who will ensure that that you don’t have to move that alone.
Alissa Krasner Maizes, financial planner and founder of Amplify my wealthsays don’t let analysis paralysis be your excuse for finding and working with a financial advisor.
“Partnering with a financial advisor to achieve an individualized financial plan that matches your goals and risk tolerance can help you along your journey to amplifying your wealth,” says Krasner Maizes.
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